S Alam Group has announced its intention to take legal action against Janata Bank’s decision to auction properties belonging to its subsidiaries, S Alam Refined Sugar Industries and S Alam Cold Rolled Steels. The bank plans to auction these properties to recover defaulted loans totaling Tk 37.8 billion—Tk 20 billion from S Alam Cold Rolled Steels and Tk 17.77 billion from S Alam Refined Sugar Industries.
S Alam Cold Rolled Steels, a publicly traded company, informed the Dhaka Stock Exchange (DSE) on Wednesday about its plan to take the matter to court in an effort to halt the auction. This response came after a formal query from the DSE on January 5 regarding the auction.
The company has been facing significant challenges due to circumstances beyond its control, including the freezing of its bank accounts and restrictions on opening letters of credit (LC). Despite these difficulties, the company has managed to continue production and supplies.
S Alam Group explained that Janata Bank’s move to auction mortgaged properties for Tk 20.3 billion will not directly affect its business. Nevertheless, they are preparing to initiate legal proceedings to stop the auction.
According to Janata Bank sources, the auction will be conducted as per rules, and a notice has already been published in newspapers regarding the auction.
