Habib Group directors ordered to repay Tk348cr loans within two months

The money loan court in Chattogram has ordered the directors of Habib Group to repay Tk350 crore loans within two months. 

Judge Mujahidur Rahman passed the order on Tuesday (11 June) in four loan default cases filed by two banks.

According to the court documents, One Bank Agrabad branch filed three cases against three companies of Habib Group — HG Aviation, Siams Superior and Legacy Fashion — to recover Tk210 crore. 

Besides, Dhaka Bank's Khatunganj branch sued another company of the group, Habib Steels, to recover Tk138 crore. 

Against the loans taken by all the four institutions, there was no immovable property mortgaged in the respective banks. The directors of the group took huge loans on personal guarantee only, according to sources.

Rezaul Karim, bench assistant of the court, told TBS that seven directors, including the chairman and managing director of the group, have been staying abroad for a long time. 

"When the defendants applied to contest the case through using a power of attorney [ in their absence], the court rejected it and ordered them to appear in person. But they did not appear even after setting several dates," said Karim.

The court, noting the absence of the defendants and any property collateral against the loans, rejected their plea and issued a unilateral decree, he added.

This decree was issued against chairman Yakub Ali, managing director Yashin Ali, and directors Amina Mahbub, Anjuman Ara Begum, Salma Sultana, Tanvir Habib, Salman Habib, and Mashroof Habib.

Habib Ullah Mia of Chattogram started an import-export business of consumer goods under the name Habib Trading in 1947. 

Later, his three sons, Yakub Ali, Mahbub Ali, and Yasin Ali, joined the business, expanding Habib Group into garments, textiles, shipbreaking, steel, cement, and paper industries with a reputation for seven decades. 

However, business expansion into the fertiliser, power generation, and aviation sectors in the last decade has led the group to losses, with most of its 31 companies already ceasing operations, while a few others have been rented out to other businessmen.

Since mid-2022, six bank-financial institutions have filed over 100 cases against the group's executives. In September 2022, the court issued travel bans and arrest warrants in two cases against five officials of the group in a case involving IDLC Finance. 

Following the ban issued by the Chattogram money loan court, they left the country. 

The group's chairman Yakub Ali and his son Mashroof Habib are reportedly staying in the US, managing director Yasin Ali, his son Salman Habib and Mahbub Ali's son Tanveer Habib are in the UK. ###