Driving on financial institution loans, they’ve been going from power to power – their companies expanded, and so they purchased land, flats, SUVs and whatnot. But, these wilful defaulters are unwilling to repay their debt obligations.
Banks resorted to court docket to retrieve their cash, however prolonged judicial procedures bought in the best way and threw spanners on their efforts, permitting defaulters to indulge in.
Bankers say such tendency of not repaying loans by companies has had a adverse influence on Chattogram’s banking business.
Take Shah Amin Group, engaged in motor components and refuelling companies, for instance – it had taken out Tk125 crore from Islami Financial institution’s Chaktai department at totally different occasions since 2007 for its three enterprise entities – Shah Aminullah Lubricants and Grease Industries, Shah Amin Ullah Oil Businesses and Shah Amin Ullah Filling Station.
Ahmed Nabi Chowdhury, proprietor of the group, stopped paying again to the financial institution in the previous few years though his enterprise has been going nice weapons. His repayments within the preliminary years went nicely.
Having did not get again its cash even after a very long time, Islami Financial institution ultimately lodged a case with Artha Rin Adalat (cash mortgage court docket) in opposition to Shah Aminullah Lubricants and Grease Industries to get well Tk67.61 crore defaulted by it. The group now owes Tk165 crore plus in pursuits to the financial institution.
Aman Ullah, senior assistant vice-president and head of Chaktai department of Islami Financial institution, stated Shah Amin Group has not been repaying the financial institution for a very long time despite the fact that its enterprise in motor components and filling stations goes nicely.
They earlier filed 21 instances in opposition to Shah Amin Group beneath the Negotiable Instrument Act, he added.
Ahmed Nabi Chowdhury, chairman of Shah Amin Group, stated, “We are attempting to get our loans rescheduled via negotiation in order that we are able to pay again.”
Ahad Buying and selling, one other Chattogram-based firm, has not been repaying loans for a very long time, although the corporate has expanded its enterprise with financial institution loans through the years since 2005 – it now imports wheat, edible oil and spices although it began with solely sugar.
Md Abul Bashar, proprietor of the corporate, now owes Tk136 crore to the Nationwide Financial institution and round Tk74 crore to the Prime Financial institution.
Financial institution officers say Abul Bashar, an importer of wheat, sugar, edible oil and spices, has been increasing his enterprise dimension with every passing yr. He purchased land in prime areas of the port metropolis, equivalent to Patia, Anowara and Raozan and in addition constructed a neighborhood centre within the metropolis’s Kalamia Bazar space. However he’s dilly-dallying to repay financial institution loans.
Abul Bashar stated, “I couldn’t repay loans due to losses in my enterprise. I now recurrently talk with the 2 banks. I hope that the matter might be resolved quickly if financial institution officers involved cooperate.”
In one other instance of a wilful defaulter, Mabia Metal was arrange with the assistance of financial institution loans by two brothers – Jahangir and Farid from Sitakunda space, owes round Tk500 crore to totally different banks and non-bank monetary establishments for a very long time. However the firm has not paid again a single penny to them.
Likewise, GK Metal, which has been concerned within the metal enterprise in Chattogram for a very long time, defaulted on Tk75 crore it took from two branches of the Nationwide Financial institution to extend its enterprise quantity.
Officers on the financial institution say GK Metal took the loans to import uncooked supplies for making SS and MS pipes. It continued to pay mortgage instalments initially. However it has not stopped repayments for the final four-five years regardless of registering good companies.
One other defaulter enterprise entity, S&M Buying and selling Firm, a subsidiary of Jainab Buying and selling, has taken out financial institution loans at totally different occasions to import client items since 2008.
Two brothers – Ahmed Abdullah and Mahmud Abdullah – who function the enterprise that’s formally named after their mom Ruhina Khanam – haven’t but paid a single penny despite the fact that over a decade went previous since they took a mortgage from Financial institution Asia. Their legal responsibility to the financial institution now stands at Tk41 crore.
The group additionally owes round Tk85 crore to Al Arafah Islami Financial institution, Tk95 crore to Uttara Financial institution.
Its enterprise workplace named Jainab Tower is positioned in Khatunganj, a client items market. The corporate’s house owners additionally personal 15-20 multi-storied buildings in several components of the port metropolis.
Ahmed Abdullah stated, “We couldn’t repay financial institution loans as a result of we suffered an enormous loss in our client items enterprise. We are actually making an attempt to reschedule the loans.”
Tremendous Six Star Company, a shipbreaking firm, owes round Tk144 to 5 banks.
In 1994, six pals ventured into shipbreaking enterprise, however originally, three of them pulled out.
The remaining three companions – Mozahar Hossain, Shamsul Alam and Yusuf – continued with the enterprise that thrived on financial institution loans over the subsequent 20 years, however they didn’t pay again the loans. The corporate closed down – none of them now desires to repay liabilities.
The corporate defaulted on Tk60 crore from Janata Financial institution Laldighi department, round Tk49 crore from Social Islami Financial institution, Tk21 crore from Japanese Financial institution, Tk6 crore from Prime Financial institution and Tk8 crore from Southeast Financial institution.
The three house owners are actually engaged in several companies – Mozaher runs Zahid and Brothers’ public sale enterprise, Shamsul has a enterprise named Alam Metal, whereas Yusuf has a enterprise of previous ship cables that’s at present run by his son.
Syed Mahmud Akther, senior govt vice-president and head of company (Chattogram) at Mutual Belief Financial institution, stated not returning financial institution loans may be very unethical regardless of working enterprise efficiently for a very long time.
To get well loans, banks file instances in opposition to such defaulters however they handle to get away due to prolonged court docket proceedings, he added.
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