Janata Bank has announced the auction of mortgaged assets of Global Trading Corporation Limited, a subsidiary of S. Alam Group, to recover 185 billion taka in defaulted loans. This auction will take place on November 20, involving the sale of 1,860 acres of land owned by S. Alam Group in Chittagong and Gazipur. The market value of the land is estimated at 35.8 billion taka, which is nearly five times less than the amount owed.
According to internal bank sources, Global Trading Corporation has exceeded its loan limits, violating Bangladesh Bank guidelines. Established in 2012, the company primarily engages in power and gas trading. By 2021, its loan amount had reached 107 billion taka, which has since increased to 185 billion taka as of September 2024.
S. Alam Group is the second-largest borrower from Janata Bank, with a total loan amount exceeding 783.2 billion taka. Additionally, another of its companies, S. Alam Cold Rolled Steel Limited, has nearly 200 billion taka in loans, making it the tenth-largest borrower.
Meanwhile, following the change in government, the central bank has dissolved the boards of banks controlled by S. Alam Group and has suspended the shares of 56 entities and individuals linked to the Islamic Bank. Bangladesh Bank Governor Dr. Ahsan H. Mansur referred to the banking scandal involving S. Alam Group as “one of the largest bank heists in the world.”
Currently, Mohammad Saiful Alam Masud (S. Alam) serves as the Chairman and Managing Director of Global Trading Corporation Limited. Travel restrictions have been imposed on him and his family, but it is believed they are currently outside the country.
There are allegations against S. Alam Group that they have embezzled vast amounts of money from various banks with government patronage. In this context, banks are now attempting to recover their dues through legal action.
