Beximco group‍‍`s massive debt hits 50,000 crore taka, High Court steps in

Beximco Group, one of Bangladesh’s top business giants, is facing a staggering debt of 50,000 crore Taka, owed to 16 banks and seven financial institutions, as of November 30 this year. 

The debt involves 78 companies under the group, and the issue has now reached the High Court. On Sunday, December 15, the court heard a case related to this massive debt and issued a rule on the matter. The next hearing is set for January 22.

During the court session, Bangladesh Bank’s lawyer, Muniruzzaman, revealed the shocking figures. According to him, the debt includes 31,075.67 crore Taka in classified loans, and some banks, including Janata, IFIC, Sonali, and Rupali, are accused of breaking banking laws by offering various financial advantages to Beximco Group’s companies. 

These benefits include loans, loan rescheduling, extending loan terms, and giving additional loans. Muniruzzaman pointed out that Janata Bank alone provided nearly 20 times the financial assistance owed by Beximco, and half of the total debt came from this one bank.

This case began in September when senior lawyer Masud A. Sobhan filed a petition, seeking answers about loan waivers and repayment details of Beximco Pharmaceuticals Limited and its associated businesses. 

Following a hearing on September 5, the High Court ordered the attachment of Beximco Group’s assets and appointed a receiver to manage them for six months. Bangladesh Bank was also tasked with recovering the borrowed funds and ensuring that the money sent abroad was returned.

Beximco Pharmaceuticals Limited challenged the court‍‍`s decision to appoint a receiver, and on November 12, the Appellate Division temporarily stayed the order for Beximco Pharmaceuticals. 

However, the case was directed back to the High Court bench, led by Justice Farah Mahbub, for further proceedings.

On December 15, Deputy Attorney General Md. Asad Uddin confirmed that the court had set the next hearing for January 22. 

The High Court’s rule orders Beximco to provide details of its outstanding loans, the current status of repayments, and to attach all the group’s assets, with a receiver appointed to oversee the management of these assets. 

In line with this, Bangladesh Bank has appointed its Executive Director, Md. Ruhul Amin, as the receiver for Beximco Group.

This case continues to develop, and the business community is watching closely as Beximco Group faces increasing pressure from the court and financial institutions.