BM Desk : In order to take action against the directors of Ashraf Textile Mills Limited, a textile business that was delisted from the main board of the capital market, the capital market regulator BSEC is turning to the Bangladesh Financial Intelligence Unit (BFIU). The company’s directors will face consequences for their involvement in money laundering.
The decision was made during the 941st commission meeting, which was chaired by Khandaker Rashed Maqsood, the chairman of the Bangladesh Securities and Exchange Commission (BSEC), and took place on Wednesday, February 5. Bank Loan
On Tuesday, February 11, BSEC Executive Director and Spokesperson Muhammad Rezaul Karim signed a press statement containing this information.

The notification indicated that following the investigation report on Ashraf Textile Mills Limited, a publicly listed entity in the capital market, a conclusive decision has been made to refer the case to the Bangladesh Financial Intelligence Unit (BFIU) for enforcement actions regarding breaches of securities laws and regulations, as well as addressing money laundering concerns, after evaluating the outcomes of the 881st and 902nd commission meetings.

Notably, several inconsistencies were uncovered upon reviewing and verifying the BSEC audited financial statements (2010-2012) and the investigation report from the Chittagong Stock Exchange. The auditors’ report stated that the company ceased production in 2006 and began selling all its machinery from that point onward. The company sold a total of 32.82 bighas or 1085 decimals of land situated in Ashrafabad, Tongi, Gazipur to Karnaphuli Industries Limited for Tk 75 crore.

BSEC reached out to the company requesting details on the utilization of Tk 75 crore from the land sale. Additionally, the company’s board of directors was instructed to provide a personal explanation along with the necessary documents and other relevant materials concerning the stated issue. However, no response was received from them regarding this matter.

It is thought that Ashraf Textile’s business owners embezzled the proceeds from the sale of their land. It might have been smuggled overseas in part.
At the moment, the business is listed on the Dhaka Stock Exchange’s Over-the-Counter (OTC).