Janata Bank sues Enontex over Tk 8,500cr defaulted loan

Janata Bank has finally filed a case to recover Tk 8,500 crore much discussed loan from Enontex Group. The loans, given through irregularities and fraud defaulted in 2019. 

After filing the case, the court said in an order that the officials whose negligence and collusion caused such a delay in taking legal action should be called to the court for answer within 90 days. 

Judge Mujahidur Rahman of Dhaka's Financial Crimes Court-5 issued this order on Thursday (November 13). Earlier, the ACC filed several cases regarding Enontex's loan fraud.

It is learned that initially a case was filed against Simran Composite of Enontex Group on Wednesday (November 12) and making observing on the case, the court said the huge loan was given to Enontex Group in 2012 violating the loan limit of a single customer. 

Despite repeated interest waivers and allowing additional time to repay the loan, the business group did not repay. Thus obligation to file a case for debt recovery was created in 2019. 

After 2022, the defaulter did not pay a single taka; even the down payment in the case of loan rescheduling and remained open to take new loans from other banks and financial institutions. It even borrower tk 700 crore from Islami Bank violating condition in 2023 
 
During the previous government, Janata Bank board of directors conditionally waived Tk 3,359 crore interest to Enontex in November 2022 under one-time exit facility.

Time was given until December 2023 to pay Tk 4,819 crore after the waiver. At that time, the bank owed Tk 8,178 crore including interest to Enontex Group. Due to failure to comply with the conditions, interest of Tk 142 crore in 2023 amounted to Tk 8,320 crore. 

Then in March 2024, the bank gave another two years to repay Tk 4,961 crore while maintaining the interest waiver facility. 

The group then made a pledge to repay the loan and won permission under condition of depositing Tk 30 crore and canceling the facility if it failed to pay two consecutive installments. 

Then under the tripartite agreement, the entire dues were to be paid by 2025. In the meantime changes in the board of directors were made including managing director positions after the fall of the Awami League government. 

The new authorities issued auction notice for the sale of Enontex land in December last year, but did not find a buyer. The court then ordered mortgage of 128 acres of land of 22 companies of Enontex Group adjacent to Turag River in Ashulia and Tong rivers.  

The court order on Thursday stated said the bank has set an example of extreme irresponsibility as a 'trustee of public money' by not filing a case against the Enontex Group even so long after the political change over. 

Disciplinary action must be taken against those who have refrained from legal action due to negligence and collusion. The bank's managing director cannot escape the responsibility of inaction. 

A copy of the order has been sent to the bank's chairman to inform the court and the government within 90 days of taking appropriate action against those officials responsible for negligence in failing to file a case. 

A senior official at Janata Bank said after the new board took charge, efforts continues to recover default loans. Meanwhile revaluation of mortgaged property has been completed.  Although an auction notice was issued in December last year, no buyer was found.