Assets of S Alam Group to be put on auction to realize Tk 100b default loans

The Khatunganj Branch of Islami Bank Bangladesh has decided to auction 20 acres of mortgaged land, a sugar refinery factory, ponds, farmland, and other property owned by S. Alam Group to realize its non-payment loans.

According to the bank authorities, a loan taken by the S. Alam Group from Islami Bank’s Khatunganj branch in Chattogram became non-performing, reports BSS.

S. Alam Refined Sugar Industries Limited took multiple investments from Khatunganj branch of Islami Bank since 2010. Over the period, the loan amount has grown significantly and reached around Taka 99.48 billion.

Assistant Vice President of Islami Bank Khatunganj Branch said that a case was filed with the Artha Rin Adalat after getting no response from the group despite repeated calls by the bank to make the due payments.

At long last, following the order from the concerned court, a decision was taken to put up for auction the mortgaged property of S. Alam Group, including the building of the S. Alam Refined Sugar Industries and other mortgaged properties, through advertisements in newspapers.

The interested bidders have been suggested to take part in the auction at the Khatunganj Branch on May 14 by 2:00 pm through submitting their bids at the tender box, while the tender box would be opened at 3:00 pm on that day in the presence of the bidders.

The Islami Bank has decided to auction off the mortgaged property through legal proceedings under Section 12(3) of the Artha Rin Adalat Act, 2003.

S. Alam Refined Sugar Industries is one of the major enterprises of S. Alam Group. The company’s managing director is Mohammad Saiful Alam (Masud), and its chairman is his brother, Mohammad Abdullah Hasan.

Back in 2017, S. Alam Group controversially took control of Islami Bank’s board by strategically purchasing shares and installing loyal directors.

Ignoring internal banking policies, huge loans were then issued in the names of the group’s various subsidiaries.

Following a student-led mass uprising on August 5 last year that led to the ouster of the Awami League government, the Bangladesh Bank dissolved the board of Islami Bank and formed a new interim board.

At the same time, a ban was imposed on the transfer and sale of S. Alam Group’s shares.

Through these steps, Bangladesh Bank took an active role in restoring transparency and financial discipline in the bank.