Janata Bank to Auction Janakantha Bhaban Over Tk 215 Crore Debt

State-owned Janata Bank PLC has issued an auction notice for the assets of Globe Janakantha Shilpa Paribar, including its 15-storey headquarters, "Janakantha Bhaban," to recover defaulted loans totaling Tk 215 crore.

Interested bidders must submit applications to the court by 2:00 pm on April 28, accompanied by a pay order or bank draft for 10 percent of the reserved price. The bank clarified that neither the institution nor the court will be held liable for any disputes arising after the sale.

The loan was disbursed in 2021 through the bank’s Dilkusha Corporate Branch. Reports indicate the credit was approved following a recommendation from Salman F. Rahman, the former private industry and investment adviser to then-Prime Minister Sheikh Hasina.

In August 2020, Rahman reportedly pressured the bank to provide Tk 250 crore in working capital to the group, citing financial losses allegedly suffered during the previous BNP-Jamaat tenure. By September 2021, the Janata Bank board approved Tk 225 crore for five entities under the Globe Janakantha umbrella, with Bangladesh Bank providing a No Objection Certificate (NOC) shortly after.

Globe Janakantha Shilpa Paribar consists of eight entities, including Globe Metal Complex and the daily newspaper Janakantha. However, most units are now inactive. The daily Janakantha suspended its print and online editions in March. Former Chief Operating Officer Hafizur Rahman confirmed the group is currently overwhelmed by debt.

Janata Bank is currently reeling under a massive Non-Performing Loan (NPL) crisis, with significant defaults from major conglomerates like Beximco and S. Alam Group. By the end of last year, 74 percent of the bank’s Tk 97,934 crore loan portfolio was classified as bad or defaulted.

Managing Director Md. Mujibur Rahman stated that while the bank prioritizes auctions under the Money Loan Court Act, recovering large sums remains a challenge. "If the auction fails, we will proceed with formal lawsuits," he added. Since the change in government on August 5, the bank has intensified legal action against top defaulters.