Tk 1,964cr defaulted loan: Janata Bank files case against S Alam Group

Janata Bank PLC today filed a Tk 1,964 crore defaulted loan case against S Alam Group in the Chattogram Money Loan Court.

Chattogram Money Loan Court Magistrate Mujahidur Rahman issued an embargo on the transfer of about 7.43 crore shares of First Security Islami Bank and Al Arafah Islami Bank owned by the group, confirmed Rezaul Karim, bench assistant of the court.

He claimed that this is the first time a defaulted loan case has been filed against S Alam Group by the Chattogram corporate branch of Janata Bank PLC.

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S Alam drains Janata branch dry

He said that 10 people, including Saiful Alam and his wife Farzana Parvin, have been accused in the case for the Tk 1,964 crore defaulted loan of Global Trading Corporation, a sister concern of S Alam Group.

According to Janata Bank and Bangladesh Bank, the S Alam Group has received Tk 8,216 crore in total loans from this branch of the bank, which represents 90 percent of the branch's total loan amount.

Bank officials said that this is the first time that the bank has filed a case to recover a loan from S Alam Group.

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S Alam group, associates: Tk 95,000cr loans taken from 6 banks

Shafiqul Islam Chowdhury, the legal advisor for Janata Bank PLC, told The Daily Star, "The court put an embargo on the transfer of shares of the two banks owned by Saiful Alam and his brother Abdus Samad Labu. The court also ordered the ACC to look into whether the loan was disbursed with proper compliance."

The court documents state that Global Trading Corporation first obtained a loan of Tk 650 crore from the Chattogram corporate branch of Janata Bank, which is situated in Sadharan Bima Bhaban, in violation of Bangladesh Bank's directives. The loan amount stands at Tk 1,963 crore including interest since the company has not made any payments until September 2024.