Bank Asia to auction Partex MD’s mortgaged assets worth Tk116cr

Bank Asia has moved to auction mortgaged properties worth Tk116.45 crore of Partex Coal Ltd, a concern of Partex Group, to recover outstanding loans.

According to a public notice issued recently by the bank’s Mohakhali branch, the mortgaged assets include 259.36 decimals of land and factory buildings in Dhaka and Gazipur.

Partex Coal Ltd Managing Director Rubel Aziz—also a director of The City Bank—has been named as one of the guarantors in the notice. The auction has been called under the Artha Rin Adalat Ain, 2003, and tenders will be accepted until 3 August.

As of 9 July, the company’s total dues stood at Tk116.45 crore. Despite repeated notices, the loan remained unpaid and was eventually classified, the bank said.

The auction notice also mentions the name of Partex Group’s late founder MA Hashem and five others.

Bank Asia Managing Director Sohel RK Hussain told journalists that the borrower failed to repay the loan within the stipulated time, prompting the bank to proceed with legal recovery. “We are following due process to auction the mortgaged properties. We always prefer recovery through discussion. If the borrower clears the dues before the auction, we will withdraw the process,” he said.

He noted that as a bank director, Rubel Aziz is expected to be fully aware of banking regulations.

Repeated attempts to contact Rubel Aziz over the phone went unanswered. He also did not respond to WhatsApp messages.

Rubel Aziz currently serves as managing director of several concerns under Partex Group, including Partex Beverages Ltd, Partex Plastics Ltd, Partex Jute Mills Ltd, Partex Aviation Ltd, and Partex Properties Ltd. He is also the president of Banani Club.

Partex Coal Ltd, formed in December 2014, began commercial operations in March 2015. The company imports coal from Indonesia and South Africa and supplies it through seven distribution centres, mainly to brick kiln operators.

According to a Bangladesh Bank circular issued on 11 February, individuals associated with defaulted loans—either personally or through related entities—are ineligible to serve as bank directors. However, they may regain eligibility if the loan is regularised. In cases of wilful default, one must wait five years after the clearance of the default status to qualify again.

Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan said banks are allowed to sell off collateral from wilful defaulters following proper procedure. “We welcome any bank’s effort to recover classified loans. Defaulters cannot remain bank directors. If such issues are brought to our attention, action will be taken,” he said.

Dr Mustafa K Mujeri, former chief economist of Bangladesh Bank and executive director of the Institute for Inclusive Finance and Development, said the problem stems from a long-standing culture of regulatory abuse.

“Directors colluding to take and default on loans is a deep-rooted issue. The central bank must act decisively to hold such individuals accountable and impose meaningful sanctions,” he added.