United Commercial Bank (UCB) has decided to auction the assets of Ruby Food Products in Chittagong. Ruby Food owes the bank Tk 1,244 crore, and six and a half acres of land in Patiya and Karnaphuli areas of Chittagong are being auctioned to recover this money. UCB said in a statement today (Wednesday) that interested buyers have been asked to submit their bids for the auction at the bank’s Khatunganj branch by March 10.
Ruby Food Products is a subsidiary of BSM Group in Chittagong. The chairman of the group is Abul Bashar Chowdhury. It is learned that UCB Bank, which is controlled by former Land Minister Saifuzzaman Chowdhury, had financed Ruby Food at various times. However, the loans went bad due to the dollar crisis, non-disclosure of the loan on time and other reasons. In this situation, the bank has taken legal action to recover the money owed and the property mortgaged against the loan has been auctioned.
In this regard, BSM Group Chairman Abul Bashar Chowdhury said, “Our business has deteriorated due to the dollar crisis. The bank did not open the letter of credit on time. The ships have returned with the goods. If the banks help, we will be able to resume business.”
This is an important example of the discussion on business crisis and debt problems, where the bank has taken steps like auctioning the property to collect the debt.
