Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has instructed its members to halt new business transactions with an Indian apparel company linked to the Aditya Birla Group over an alleged unpaid export bill amounting to $426,830.
In a letter issued to members last month, BGMEA directed that no fresh dealings be undertaken with Styleverse Lifestyle Pvt Ltd and its related entities until the outstanding payment owed to Ducati Apparels Ltd is fully settled.
The association also warned members not to issue Utilization Declarations (UD) or Utilization Permissions (UP) certificates in favor of the company without prior approval from BGMEA — a move aimed at safeguarding exporters from potential financial and compliance risks.
Disputed shipment
According to BGMEA sources, Styleverse Lifestyle Pvt Ltd is reportedly a sister concern of the Aditya Birla Group, with the Indian conglomerate holding a 51% stake in the company.
Md Khayer Mia, Managing Director of Ducati Apparels Ltd, said the Indian buyer had been sourcing products from his factory for around two and a half years, initially in small volumes without major disputes.
However, in December 2024, Styleverse placed a substantial order for 94,000 pieces of men’s joggers and cargo trousers. The garments were produced as per specifications and later inspected and accepted by a Mumbai-based representative of the buyer. The shipment was exported to India via the Benapole–Petrapole land port.
“According to the agreement, acceptance was supposed to be confirmed within five working days after customs clearance, but they did not provide it,” Khayer alleged.
He said the buyer subsequently raised concerns about product quality. “I offered to travel to India to conduct a joint quality inspection, but they did not agree,” he added.
Industry insiders say BGMEA’s directive reflects growing concern over payment security and compliance risks faced by exporters, particularly in cross-border land-port transactions. The suspension of UD and UP certificate issuance without prior approval signals a strong stance by the association to protect member factories from potential financial exposure.
The development comes at a time when Bangladesh’s apparel sector is striving to strengthen trade discipline, ensure export proceeds are repatriated on time, and maintain compliance with central bank and customs regulations.
BGMEA officials indicated that further action would depend on whether the outstanding dues are settled and the dispute resolved through mutual negotiation or legal channels.
