B Mirror Report: The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has instructed its member factories to refrain from conducting business with four Indian companies after one buyer allegedly failed to clear payment for shipped goods.

The apparel sector’s apex trade body issued the directive through a notification on Saturday, naming Indian Garage Co, Styleverse Lifestyle Pvt Ltd, Aditya Birla Fashion and Retail Ltd, and Grasim Industries Limited.

According to BGMEA, Styleverse Lifestyle Pvt Ltd, a sister concern of the Aditya Birla Group, failed to settle an outstanding export payment of $426,830.66 despite receiving the garment shipment.

As a result of the unpaid dues, the exporting company, Ducati Apparels Ltd, has reportedly been facing serious financial, commercial and social difficulties.

BGMEA President Mahmud Hasan Khan said the association made several attempts to resolve the issue amicably and contacted senior officials of the four companies multiple times. However, the buyer did not clear the payment owed to the Bangladeshi exporter.

Managing Director of Ducati Apparels Ltd, Md Khayer Mia, said Styleverse Lifestyle placed orders for 94,000 pieces of woven garments in December 2024, which were shipped in April through the Benapole-Petrapole land port.

He alleged that Indian customs authorities released the shipment without receiving the required banking documents, which is usually mandatory for such transactions. When contacted, the buyer raised quality concerns, although their representatives had inspected the goods before shipment.

He further said the company later avoided payment through various excuses and ultimately failed to pay around $0.42 million (approximately Tk 5–5.5 crore). He subsequently filed complaints with BGMEA, the Indian High Commission, and relevant authorities in both countries.

In its notification, BGMEA stated that Styleverse Lifestyle’s failure to participate in arbitration proceedings has created financial risks and commercial uncertainty for its member factories.

The association warned that continued business with these companies could expose local exporters to similar financial risks. It advised members not to enter into new business transactions with the four companies or their representatives.

BGMEA also cautioned that any factory engaging in business with these firms despite the advisory will bear responsibility for any resulting complications.

Additionally, member factories have been instructed to obtain BGMEA’s approval before issuing utilisation declarations (UD) in favour of the listed companies.