Bangladesh’s interim government has decided to initiate legal action against the owners of at least 10 distressed industrial firms, including the Beximco Group, after more than Taka 700 crore in interest-free loans provided to clear workers’ wage arrears were not repaid within the agreed timeframe.
According to official records, the government has set 31st December as the final deadline for repayment. Factory owners who fail to meet this deadline will face legal proceedings, alongside additional measures such as foreign travel bans, confiscation of passports belonging to owners, managing directors and board members, and the possible sale of land, factories and machinery to recover the funds.
The decisions were recorded in the minutes of a meeting of the Adviser Council Committee on labour and business conditions, held at Beximco Industrial Park.
A total of Taka 701.6 crore was disbursed to 10 industrial groups under a six-month repayment condition following widespread labour unrest triggered by unpaid wages after 5th August last year. Of this amount, Taka 76.15 crore was provided by the Ministry of Labour and Employment, while Taka 625.46 crore came from the Finance Division.
Labour and Employment Adviser Brigadier General (retd) M Sakhawat Hossain has held multiple meetings with factory owners and representatives of the BGMEA and BKMEA, seeking cooperation to ensure recovery of the funds.
The loan recipients include Beximco Group, Bards Group, TNZ Group, Yellow Apparels Limited, Dard Group, Niagara Textiles Limited, Roar Fashion Limited, Mahmud Jeans Ltd and Apparel Chain BD Limited.
Beximco Group accounts for the largest exposure, having received nearly Taka 585 crore in two tranches. The company was given Taka 59.53 crore in November last year and a further Taka 525.46 crore in March, but repayment deadlines in May and September passed without settlement.
Other firms have also failed to repay their loans despite expired deadlines. Bards Group received Taka 19 crore, TNZ Group Taka 28 crore in two phases, Yellow Apparels Taka 37.32 crore, Dard Group Taka 13 crore, Niagara Textiles Taka 18 crore, Roar Fashion Taka 1.23 crore, Mahmud Jeans Taka 21 crore and Apparel Chain BD Taka 1 crore.
A senior finance ministry official said the loans were extended primarily to prevent labour unrest, but recovery efforts were unsuccessful as many of the factories remained closed.
The labour ministry has also warned of fresh unrest, with three additional companies—BHIS Apparels Limited, Seasons Dresses Limited and Paradise Cables Limited—currently unable to pay wages and benefits. BHIS Apparels owes Taka 2.27 crore, Seasons Dresses Taka 16.75 crore and Paradise Cables Taka 8.40 crore.
At the meeting, Paradise Cables’ managing director said the factory had been closed since 2017 and that efforts were under way to clear outstanding dues within three months. Seasons Dresses has sought an interest-free loan from the central labour fund, while BHIS Apparels did not send a representative. A Dard Group representative said the company was unable to pay remaining worker dues due to a lack of funds.
The labour adviser has instructed officials to form a technical committee to prepare a comprehensive action plan to settle workers’ dues at the affected firms and prevent further labour unrest.
