BB orders freezing Northern Jute’s bank accounts

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Factory laid off, shares tumble

The Bangladesh Bank (BB) on Sunday directed all banks to freeze accounts of listed company Northern Jute Manufacturing Company Limited (NJMCL) for an indefinite period.

Following the directive, the company stopped its production, according to a Dhaka Stock Exchange (DSE) web post.

on Sunday, DSE in its disclosure said as per the order of the High Court, the BB governor directed freezing all bank accounts of the company.

According to the DSE disclosure, the company could not procure any raw jute and make any payments to spare parts suppliers while it failed to disburse any cash dividend to their respected shareholders due to the freezing order.

Therefore, the company decided to shut down the mill between February 22 and 25 , added the disclosure.

The shares in Northern Jute closed the day at Tk421.80, down by Tk40.4 or 8.74% from Tk459.80 per share in the previous session on DSE.

Talking to Dhaka Tribune, Northern Jute Manufacturing Company Managing Director Ananga Mohan Roy said he did not know why the central bank ordered freezing bank accounts. 

“We will move the High Court today,” Roy said.

Northern Jute Manufacturing Company, located in Kushtia, was listed with the Dhaka Stock Exchange in 1994.

The HC on January 22 directed Bangladesh Bank and all private banks to freeze the accounts of Proshanta Kumar Halder (PK Halder), former managing director, NRB Global Bank and Reliance Finance Limited, and his five associates including Bank Asia Limited former managing director Erfanudidn Ahmed and Northern Jute Chirman Uzzal Kumar Nondi on charge of embezzling Tk3,000 crore from different leasing companies through taking loans in the names of fake companies.

The court also directed the government to seize passports of PK Halder, now abroad, his mother Lilaboti Halder, brother Pritish Kumar Halder, wife Susmita Saha, cousins Amitav Adhikari and Avijit Adhikari, and associates Erfanuddin Ahmed and Uzzal Kumar Nondi, so that they could not leave the country.