Family conflict, mismanagement, unplanned investment drowned once reputed Paradise Cables Limited and forced the company defaulted Tk 195 of the AB Bank Limited.
Paradise Cable Limited is one of the top cable companies in Bangladesh. Based on this organization, the business of Paradise Group expanded in more sectors but could not succeeded, sources said.
According to AB Bank sources, the total debt of the bank to the two affiliates of the group is Tk 195.44 crore. The Motijheel branch of the bank has taken initiative to sell the mortgaged property at auction, which will be held on July 15 at the concerned branch.
Apart from that the group has debt worth Tk 600 crore with seven banks and one financial institution. The group owes money to Standard Bank, Dhaka Bank, AB Bank, Jamuna Bank, Trust Bank, Eastern Bank, NCC Bank and Phoenix Leasing and Investment Limited. The people in charge of the group have not repaid any loan for a year.
According to sources, Paradise Cable Limited and Paradise Spinning Mills Limited, two subsidiaries of Paradise Group, have taken loans from Motijheel branch of AB Bank Limited for business expansion. Initially, the company repaid the loan regularly but failed to repay the loan in the last few years.
Even such an initiative was not seen in paying the dues. As of May 30, the bank owes the group a total of Tk 195.44 crore, including interest. Of this, Paradise Spinning Mills Limited owes Tk 121.56 crore and Paradise Cable Limited owes Tk 83.06 crore.
A total of 6 acres of land owned by Paradise Spinning Mills Limited in Fatullah, Narayanganj and 2.10 acres of land owned by Paradise cables Limited in Sreepur, Gazipur, six acres of land are being auctioned.
Sources said managing director Mubarak Hossain and vice chairman of the company are at loggerhead. Both the parties are writing letters to various government departments including banks and appearing in person and making complaints against the other party. The family’s business suffered because of these family problems, which affected banking transactions. None of them are interested in paying the bank dues. The financial institutions are in trouble.
On the other hand, regarding Paradise Cable Company, Inspector General of Labor and Employment Shivnath Roy said that legal action has been taken against the owner of Paradise Cable and instructions have been given to pay 13 months arrears of salary and allowance. The workers of the company have taken to the streets in protest at different times. Mosharraf Hossain, Chairman, Paradise Cable Limited, Narayanganj, in view of such deprivation of ownership authority towards the workers.
The Department of Factory and Establishment Inspection has written to the Director General of Industrial Police to take legal action against MD Mubarak Hossain, partners Mojibur Rahman and Moniar Hossain for not paying all due dues to the workers and tarnishing the image of the government. On June 23, a letter was sent to the Director General of Bangladesh Industrial Police Abdus Salam.
It is known that the journey of this organization started in 1989. Paradise Cables is providing 40 percent of the country’s total cable demand. Paradise Cables has been awarded the Quality Certificate by the British Approval Service for Cables (BASEC) for the production of quality cables. The company has started exporting cables due to this certificate. And based on this organization, the business of Paradise Group expanded in more than one sector.
Group affiliates in the Paradise are SBS Cables Limited, Paradise Metallurgical Complex Limited, Paradise Spinning Mills Limited, Paradise Fashion Limited, Saleha Wires Limited, Paradise Telecom Limited, Paradise Electronics Limited.