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Once a highly sought-after client has now become the bane of the banking industry.

More than 20 cases were filed in the Chattogram Money Loan Court by several banks against the top management of the group.

In three of these cases, arrest warrants have been issued in the name of five top officials of the company.

Several banks and financial institutions were used to provide large sums of money as loans against nominal collaterals because of its reputation. The loans have created significant problems for the banks.

The third-generation has been trying to invest in new fields for the last few years, but no lender is ready to extend any more loans. On September 20, a Chattogram court issued arrest warrants against five owners of MEB Group in a case filed over embezzling of Tk 183 crore from the Khatunganj branch of National Bank.

They are Alam, Absar, directors Mohammad Nurul Alam, Kamrun Nahar Begum, wife of Shamsul Alam, and Tahmina Begum, wife of Absar.

On June 23, the court issued arrest warrants against the five in a case lodged by Southeast Bank.

Shafiqul Islam Chowdhury, a legal adviser to National Bank, said the private commercial bank lent Tk 102 crore in 2008, although 50 kathas of land worth Tk 1 crore were put up as collateral, thanks to its business reputation.

The company paid a few instalments. In 2014, National Bank filed a case in the Money Loan Court against the owners after it stopped paying installments.

According to Chowdhury, the managing director and a director of MEB met with the top officials of the bank and requested them to extend the term of the loans for 15 years. But they did not agree to pay 5 per cent of the loans as down payment as per laws.

“So, it was not possible for us to reschedule the loans.”

Shamsul Alam and Absar could not be reached for comments.