Navana’s mortgaged assets up for auction over Tk501cr default

Southeast Bank has moved to auction mortgaged properties of Navana Real Estate Ltd to recover loans amounting to over Tk501 crore, defaulted with its Motijheel branch.

In a notice published on Saturday, the bank announced the sale of 526 decimals of land—along with buildings and factories—located in Tejgaon, Dhamrai, and along the Dhaka-Aricha highway. Interested parties have until 6 August to submit bids along with a bank pay order.

Navana Real Estate is a concern established by noted industrialist Jahurul Islam, who passed away in 1995. The company is now managed by his successors.

The notice names Khaleda Islam, managing director of Navana Real Estate, and her husband Shafiul Islam as the borrowers.

As of 12 August last year, the company’s outstanding dues to the bank stood at Tk500.79 crore. The bank said that the auction is being held under legal provisions after repeated attempts to recover the loan failed.

A total of 11 schedules detail the mortgaged properties, which include land and structures across several strategic locations. The highest bidder must pay the full amount within 90 working days. The bank also said it will not be responsible for any claims by third parties on the auctioned properties.

Navana Real Estate’s Chief Financial Officer Nazmul Hossain told journalists that the company is working to regularise the loan through rescheduling.

“An application will be submitted soon. The bank may have issued the auction notice to comply with legal formalities or regulatory requirements. We hope the issue will be resolved shortly," he said.

A Southeast Bank official, preferring anonymity, said the central bank has become strict on non-performing loans.

“Policy support has diminished, and in some cases, loans are being classified more aggressively. That’s why banks are focusing more on recovery,” he added.