Nabil Group robbing banks in BEXIMCO style

Repaying old loan instalments with new loan money was BEXIMCO Group owner Salman F Rahman’s favourite practice. He was adept at abusing political power to fry fish using oil extracted from that very fish. Now, apparently Aminul Islam (Swapon), managing director of Rajshahi-based Nabil Group, has stepped into the role of Salman F Rahman.

He gets huge loans from different financial institutions even though he does not have a large manufacturing industry or sufficient assets to keep as collateral. Recently, allegations have been made against the group for taking a loan of Tk800 crore from the Islami Bank for paying off old loan instalments in this process.

Talking to bank officials, it is learned that the MD of Nabil Group claims that all the loans in his name are regular. There has been no default. But he is not taking responsibility for the loans that have been taken out through the shell companies opened through him or taken by S Alam Group. He is now the most powerful among all the customers of the Islami Bank.

According to bank sources, he has taken a new loan of Tk800 crore from the Islami Bank after the change of government. However, the central bank has not found any irregularities in this regard. Several bank sources have also said that Nabil Group is paying its loan instalments regularly to the banks including Islami Bank.

Nabil Group has taken a loan of Tk7,000 crore through a unique fraud. There are various irregularities in another loan of Tk4,000 crore. One of these is collateral fraud.

Usually, loans are given after collateral is mortgaged, but in this case, the loan was given first, and the collateral was taken later. The FDR opened with the loan money was mortgaged as collateral for that loan. In case of default, the FDR was broken and renewed through down payment. This incredible fraud was committed by Nabil Group and dishonest bank officials helped in this.

In addition, the value of the collateral against the loan is very low. With the money obtained through the loan fraud, the group has illegally purchased 1,000 acres of land in different parts of the country.

According to the circular of the central bank, buying land with loan money is prohibited. It is alleged that the money from these loans taken from three banks went through a few hands and went to S Alam’s account, which was later laundered abroad in various ways.

The Bangladesh Bank, Bangladesh Financial Intelligence Unit (BFIU), Anti-Corruption Commission (ACC), National Board of Revenue (NBR) and CID are investigating various types of frauds committed by Nabil Group.

On 24 March, a court ordered the seizure of 178 bighas of land belonging to Nabil Group MD Aminul Islam, his wife Israt Jahan, and their four companies. These assets are located in Tekatapara, Paba Upazila, Rajshahi.

According to the ACC’s application, the anti-corruption body requested the seizure of the accused’s assets on the same day due to allegations of money laundering. The judge later granted the request.

Among the assets are 132 bighas of land in the name of Aminul Islam, 23 bighas in the name of his wife Israt Jahan, 13 bighas in the name of Nabil Pharma Limited, about 1 bigha in the name of Anwar Feed Mills Limited, about 9 bighas in the name of Nabil Great Homes Limited, and 8 decimal of land in the name of Nabil Naba Foods.

The application for seizure states that the accused, Nabil Group of Industries Chairman Aminul Islam, his family members and related organisations, have been accused of embezzlement and money laundering by taking loans from banks through fraud, deception and bribery.

The information obtained during the investigation has revealed information about some immovable assets in the names of the accused individuals and organisations. These immovable assets may be sold or transferred, so it is necessary to stop any transfer, conversion or transfer of those assets until the end of the investigation.

Otherwise, there is a possibility of hindrance in the recovery of proceeds of crime, including taking legal action after the investigation, where applicable. Therefore, it is necessary to seize the immovable properties mentioned in the names of the individuals and organisations involved in the complaint.

The Islami Bank has given loans of Tk9,565 crore to 9 companies opened in the names of 14 employees and beneficiaries of Nabil Group. All of these 14 people receive salaries and honorariums from Nabil Group every month.

The Bangladesh Bank and the Islami Bank officials have confirmed that the main beneficiary of this anonymous loan is Nabil Group.

Among them, a company called Nabil Grain Crops is owned by the group’s employees Shakil Hossain and Raihanul Islam. The managing director of Nabil Group is also in this company. Although the word Nabil is in the company’s name, the company’s name is not mentioned on the group’s website. The Islami Bank has given a loan of Tk1,770 crore to this company.

Nabil Group based in Rajshahi is one of the country’s leading consumer goods importers and suppliers. The company’s total undisclosed loans to Islami Bank are Tk13,645 crore. Almost all of these loans were given during the Awami League government, especially in 2022. These loans are not being returned; and they are not defaulting even during the interim government.

Nabil Group is headed by Aminul Islam Swapan. The group has become the country’s fourth largest importer of consumer goods under the current government. It was fifth in consumer goods imports in 2022 and 2023 under the Awami League government.

While searching for the source of the power of businessman Swapan, it was learned that he was seen with leaders at the Jamaat-e-Islami conference stage in Rajshahi on 18 January. When criticised for this, Maulana Keramat Ali, the Ameer of Rajshahi Metropolitan Jamaat-e-Islami, said in a statement that the chairman of Nabil Group got on the stage without his knowledge. He is not a Jamaat worker at any level.

After the interim government took office, 11 committees were formed comprising four government agencies to investigate allegations of bank fraud and money laundering by Sheikh Hasina’s family and 10 business groups and take action. The name of Nabil Group is also on the list of these 10 companies.

Besides, due to suspicious transactions, the Bangladesh Financial Intelligence Unit (BFIU) has seized the personal bank accounts of Nabil Group MD Aminul Islam, his wife Israt Jahan, father Nabil Group Chairman Jahan Box, mother and group director Anwara Begum, two children Ejaz Abrar and Afra Ibnath. However, there is no obstacle to managing their company’s accounts.

Islami Bank sources said that the current loan balance of each of the institutions of the Nabil Group has gone above the permitted limit. This limit was exceeded because the bank gave them more loans even after they did not repay the previous loans on time. The loan limit of these companies in various branches of the bank is Tk8,112 crore. In contrast, the loan balance as of 20 March stood at Tk9,565 crore.

According to the Banking Companies Act, a bank can lend a maximum of 25% of its capital to a single person or group. Of this, 15% can be funded or directly loaned. The Islami Bank is now in a capital deficit. Earlier, the bank had a capital of more than Tk10,000 crore. At that time, it was allowed to lend a maximum of Tk2500 crore to a single customer. Nabil Group was given more than five times this amount of loan anonymously.

Sources said that there are discussions on the matter at various levels within the bank. However, there is no initiative to recover Nabil’s loan. After 5 August, Nabil Group has deposited Tk300 crore with the Islami Bank. This money was given on the condition of opening an LC of the same amount. The company has not deposited any money beyond this. No action has been heard from the central bank to recover the loan.

Bangladesh Bank spokesperson and executive director Arif Hossain Khan said that the Islami Bank is among the banks that have been selected to conduct forensic audits. Action will be taken in each case, considering the seriousness of the irregularities. The class of the loan must be shown. In this case, no bank will get any exemption. However, if someone pays the instalments or re-deposits according to the rules, the central bank will provide necessary assistance.

Nabil Group was originally known for supplying consumer goods in the northern region. Although the group has been a customer of Islami Bank for quite some time, its debt suddenly increased after March 2022. Nabil Group currently has a loan of Tk2,463 crore in the name of Islami Bank’s Rajshahi branch. And AJ Trade International, registered in the name of Nabil Group’s Chairman Jahan Box, has a loan of Tk1,617 crore. The loan is currently classified as substandard and doubtful. This means that the Nabil family now has a loan of Tk4,800 crore.

As of March 2022, Nabil Group’s total debt to the Islami Bank’s Rajshahi branch was Tk2,400 crore. By the end of that year, the amount of debt, including its loans in other names, to Islami Bank’s six branches in Dhaka and Rajshahi stood at Tk9,547 crore.

According to the information provided on the Nabil Group website, there are 15 companies under the group – Nabil Trading, NGI Trade International, Nabil Feed Mills, Shipul Enterprises, INNA Agrotech, Naba Crop Care, Nabil Auto Flour Mills, Nabil Auto Rice Mills, Nabil Dal Mills, Nabil Edible Oil, Foodela, Nabil Transport, Nabil Cold Storage, Reza Cold Storage and Anura-Jahan Box Foundation.

The names of companies opened in the names of employees, including Nabil Grain Crops, are not on the website. That is why bank officials are calling the loans of Tk9,565 crore taken in the names of these companies anonymous or loans taken by Nabil Group in others’ name.