Trial begins for S. Alam chairman and 13 others in 3.25 billion Taka loan embezzlement case

Staff Report: PNN

The court has ordered the commencement of trial against thirteen individuals, including Mohammad Saiful Alam, chairman of S. Alam Group, and former Managing Director of Reliance Finance, Prashanta Kumar (P.K.) Haldar, in a case of alleged massive loan approval and embezzlement under the name of a fictitious company.

On Monday, January 19, the Ninth Special Judge Court in Dhaka formally began the trial through framing of charges. The court also set February 8 as the date for witness examination.

According to court sources, during the framing of charges hearing, the Anti-Corruption Commission (ACC) claimed that fraudulent documents were prepared to approve loans under the name of a fictitious company. The sanctioned funds were then transferred to a subsidiary of S. Alam Group, resulting in significant financial losses for the concerned financial institution.

During the hearing, two former officers of Reliance Finance, Nahida Runai and Rashedul Haque, who were in jail, were produced before the court. They denied the allegations and applied for acquittal, but the court rejected their plea.

The case alleges that in August 2013, a loan of 3.25 billion Taka was approved in favor of a paper company named ‘Messrs Mostafa & Co.’ Subsequently, the funds were transferred to S. Alam Super Edible Oil Limited.

ACC investigations revealed that senior officers of the financial institution and influential individuals associated with the group were directly involved at every stage of loan approval and disbursement.

Currently, three accused are in jail, while others remain absconding. ACC submitted the charge sheet to the court in October last year, and the court subsequently ordered the trial to begin.