Janata Bank is auctioning the property of S Alam

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Janata Bank is auctioning the property of S Alam

State-owned institution Janata Bank failed to collect about Tk 4000 crore of defaulted loans of two companies owned by S Alam Group and is auctioning the mortgaged properties of the two companies.

The two companies are S Alam Cold Rolled Steels Limited, listed on the stock exchange, and S Alam Refined Sugar Industry Limited, which is unlisted. Janata Bank owes S Alam Cold Rolled Steels Limited Tk 2,337 crore and S Alam Refined Sugar Industry Limited Tk 1,777 crore.38 crore.

Janata Bank said that these loans have become defaulted due to non-payment of installments as per the terms. Despite numerous reminders, the borrowers have not paid their dues in the last one year. Therefore, the bank has decided to auction them in accordance with the law of the Money Laundering Court.

S Alam Group operates in various sectors in Bangladesh, including sugar, oil, steel, cement, textiles, energy, import-export, transportation, banking, and power plants. The group was known as a privileged business group during the ousted Awami League government. But since then, uncertainty has arisen in its business operations.

The chairman of the industrial group, Saiful Alam Masud, is currently abroad and his and his family members’ bank accounts have been frozen. Various government agencies have launched an investigation, as a result of which the group’s bank accounts and share transfers have been banned.

Eight banks have already taken control of S Alam due to loan defaults. However, even though the S Alam group has taken huge loans from various banks, their financial condition is deteriorating due to non-repayment of loans.

The National Board of Revenue (NBR) has blocked the Business Identification Number (BIN) of all the companies of the S Alam group. As a result, their import-export activities have been stopped.

Some of the companies that were partially closed on December 24 have been reopened later. Most recently, the Anti-Corruption Commission (ACC) issued instructions on December 30 to block the bank accounts of the S Alam group.

Janata Bank has issued a notice for the auction of mortgaged properties of S Alam Cold Rolled Steels Limited and S Alam Refined Sugar Industry Limited on January 23.

The bank has mortgaged 2,971.27 percent of land in various upazilas of Chittagong and Sreepur in Gazipur against the loan of S Alam Cold Rolled Steel. Of which 276.43 percent is in Gazipur.

Janata Bank plans to collect the money by selling those lands and the infrastructure built on them in the auction.

Shares of S Alam Cold Rolled Steels Limited were last traded at Tk 10.80, which was traded at Tk 21.70 on August 4 last year.

The company made a net profit after tax of Tk 4 crore 78 lakh in 2023. It last paid a 5 percent cash dividend to investors in 2023. It has not yet declared a dividend for 2024.

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