Bangladesh’s interim government has decided to take legal action against the owners of at least 10 industrial groups for failing to repay more than Tk 700 crore in interest-free loans provided to clear workers’ wage arrears.
According to official sources, December 31st has been set as the final repayment deadline. Companies that default will face legal proceedings along with strict measures, including foreign travel bans, passport confiscation of owners and board members, and the sale of land, factories and machinery to recover public funds.
The decision was taken at a meeting of the Adviser Council Committee on Labor and Business Conditions held at Beximco Industrial Park. The loans—totaling Tk 701.6 crore—were disbursed to prevent labor unrest following widespread wage non-payment after August last year, with funds coming from the Ministry of Labor and Employment and the Finance Division.
Beximco Group received the largest share, nearly Tk 585 crore, but missed multiple repayment deadlines. Other loan recipients include Bards Group, TNZ Group, Yellow Apparels, Dard Group, Niagara Textiles, Roar Fashion, Mahmud Jeans and Apparel Chain BD, most of whom have also failed to settle their dues.
The labor ministry has warned of potential new unrest, noting that several other factories are currently unable to pay wages. A technical committee has been instructed to prepare a comprehensive action plan to recover dues and stabilize labor conditions across the sector.
Photo Courtesy by Apparel Resources
