RSRM MD Maksudur Rahman sent to jail in loan default case
Bangladesh
A Chattogram court has sent Ratanpur Steel Re-Rolling Mills (RSRM) Managing Director Maksudur Rahman to jail in a loan default case.
Judge Begum Nusrat Jahan of the Chattogram Money Loan Court passed the order on Sunday (18 February).
Maksudur Rahman was arrested in the early hours of Sunday after a warrant was issued in a case filed by Trust Bank for defaulting Tk188 crore.
Rezaul Karim, bench assistant of the money loan case, said Trust Bank filed the case against Maksudur Rahman and three other top officials of Modern Steel Ltd, a subsidiary of the RSRM Group, on 11 April last year.
Lawyer Nayeem Bhuiyan, handling the Trust Bank case, stated that despite obtaining a business loan, the RSRM Group leaders failed to make timely payments.
In both 2015 and 2019, they missed the loan installments even after rescheduling, leading to the filing of a case against them.
Different banks and financial institutions owe more than Tk2,500 crore to various institutions of the RSRM Group. The Bangladesh Bank has already given facilities for long-term loan repayment, including interest waiver, but the proprietors of the group are not showing any willingness to repay the loan, the court observed.
Currently, RSRM Group is accused in 25 cases so far on allegations of defaulting Tk2,500 crore from 10 banks and financial institutions.
The conglomerate defaulted Tk1,200 crore from Janata Bank, Tk650 crore from Sonali Bank, Tk150 crore from Mercantile Bank, Tk56 crore from Global Islami Bank, Tk188 crore from Trust Bank, Tk55 crore from LankaBangla Finance Ltd, and Tk24 crore from Prime Finance Ltd.
Production of two factories of the group stopped on 12 December, 2020 due to long-standing power bill dues and lack of working capital.
Banks accused RSRM Group MD Maksudur Rahman, Chairman Shamsun Nahar Rahman, managing director's brother Yunus Ali Bhuiyan, two sons Mizanur Rahman and Marzanur Rahman and Modern Steel Mills Ltd Chairman Md Alauddin are accused in the loan default cases.
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