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The loans were disbursed in 2021 by Janata’s Dilkusha Corporate Branch following a recommendation from Salman F Rahman, the private industry and investment adviser to former Prime Minister Sheikh Hasina.

In August 2020, Salman wrote to Janata chairman recommending Tk 250 crore in loans as working capital for Globe Janakantha as the company had been adversely affected during the BNP-Jamaat government.

Subsequently, the Janata board in September 2021 approved working capital loans of Tk 225 crore in favour of five entities of Globe Janakantha. Two months later, Bangladesh Bank provided a no-objection certificate (NOC).

Globe Janakantha Shilpa Paribar (GJSP) has eight entities: Globe Metal Complex, Globe Insecticides, Globe Cables, Globe Printers, Janakantha, Globe Construction, Globe Khamar Prokalpa and Globe Technologies.

Most of the companies are currently inactive.

In March, Janakantha, its Bangla daily newspaper, suspended its print publication and online operations.

The Daily Star could not reach GJSP for comment. However, its former Chief Operating Officer Afizur Rahman said the institution has many liabilities.

“It has around 350 to 400 creditors. All properties are mortgaged. It has not been paying income tax for a long time. There are bank loans. Overall, it is difficult to survive in the current situation,” said Afizur, who resigned last year.

State-run Janata Bank is currently struggling with high defaulted loans of Beximco, S Alam, Thermex Group and Anontex Group.

At the end of last year, its total outstanding loans stood at Tk 97,934 crore, 74 percent of which are classified as bad loans.

Under the Artha Rin Adalat Act, efforts to recover defaulted loans are first made through auction, said Md Mazibur Rahman, managing director of Janata Bank.

“However, this does not always receive a good response. In some cases, responses are received for smaller loans. If recovery is not possible this way, cases have to be filed in accordance with the law.”

Following the fall of the previous Awami League-led government, cases have been filed against many borrowers. Besides, efforts are ongoing to recover loans through other means. Last year, the bank recovered Tk 900 crore.