Written by The Banking Post
In a major development concerning corporate loan recovery, a Chattogram money loan court has ordered the seizure of multiple assets belonging to S Alam Group and its subsidiaries to settle a defaulted loan of Tk10,280 crore owed to Islami Bank PLC’s Khatunganj branch.
Asset Seizure Breakdown
- Real Estate:
A four-storey commercial building in Dhaka’s Motijheel and adjacent land (5 kathas and 9.90 decimals), owned by Farzana Parvin, Chairperson of S Alam Vegetable Oil Ltd, has been seized. The property was acquired in August 2023. - Equity Holdings:
- Tk58 crore in SS Power Ltd shares
- Tk117.75 crore in Sonali Cardo Logistic Ltd shares
- Industrial Assets:
The court ordered the seizure of 31,251.70 decimals of land and associated infrastructure, machinery, and raw materials in Gondamara and Alokdia mouzas, Banshkhali, Chattogram. These assets are linked to S Alam Cement, S Alam Vegetable Oil, and Sonali Cardo Logistic Ltd. - Frozen Accounts:
Three MSND accounts of SS Power Ltd at a Gulshan bank branch—holding Tk102.39 crore, Tk35.85 crore, and Tk778,310—have been frozen.
Legal Proceedings and Respondents
The default recovery suit was filed by Islami Bank’s Khatunganj branch on 22 June. Respondents include:
- Shahidul Alam – Managing Director, S Alam Vegetable Oil Ltd
- Farzana Parvin – Chairperson, S Alam Vegetable Oil Ltd
- Mohammad Saiful Alam – Chairman, S Alam Group
- Additional shareholders: Abdus Samad, Mohammad Abdullah Hasan, Osman Gani, Md Rashedul Alam, and Ehsanul Alam
Judge Md Helal Uddin of Artha Rin Adalat–1 issued the seizure directive on 2 July. Court sources confirmed that the action seeks to recover the loan through liquidation of identified assets.
The Banking Post Viewpoint:
The ruling signals heightened judicial scrutiny in high-value corporate loan defaults. As enforcement actions expand, banks and regulators are expected to closely monitor debt recovery mechanisms involving large industrial groups.
