Ctg loan court fines five execs of RSRM Tk462 crore

A court has fined five executives of the Ratanpur Steel Re-Rolling Mills Limited (RSRM) a total of Tk462 crore over a loan default case filed by the Sonali Bank.

Judge Mujahidur Rahman of the Chattogram Money Loan Court gave the order on Thursday, AKM Shahriar Reza, lawyer for the plaintiff, told The Business Standard on Thursday.

Those fined are: Modern Steel Re-Rolling Mills Limited Managing Director Mizanur Rahman, Director Maksudur Rahman, and officials Mohammad Alauddin, Yunus Bhuiyan and Marjanur Rahman.

Lawyer AKM Shahriar Reza said the Sonali Bank's Laldighi branch was owed money by Modern Steel Mills Limited, a Ratanpur Group company. The court order came in view of recovering the money. 

He said Sonali Bank was owed a total of Tk634 crore by Ratanpur Group. Out of this, Modern Steel Mills Limited owes Tk462 crore and Ratanpur Steel Re-Rolling Mills Limited Tk172 crore. 

The Sonali Bank has filed a total of 12 cases against the group to recover the debt. Arrest warrants have also been issued against senior RSRM executives.

Established in 1984, the Ratanpur Group's annual turnover was around Tk700 crore. About 800 workers were engaged in its factories, which have been shut since 2021 owing to unpaid electricity bills.

Currently, it owes Tk2,200 crore to 10 financial institutions.

Among the other banks, the Laldighi Branch of Janata Bank is owed the highest amount of Tk1,200 crore. Of this, the group's Modern Steel Mills Limited owes Tk409 crore, Ratanpur Ship Recycling Industries owes Tk313 crore, and SM Steel Re-Rolling Mills Limited owes Tk482 crore.

Early last year, the Sonali Bank auctioned a factory and 100 decimals of land owned by RSRM in Bayazid of Chattogram to recover its money.

The Business Standard has reached out to the RSRM for comments.