Beximco Group to run under own management as High Court rules out receiver

High Court lifts receiver for Beximco Group, orders strict oversight by Bangladesh Bank and regulators

The High Court has ruled that Beximco Group will operate under its own supervision without a receiver, with strict monitoring by Bangladesh Bank and other relevant regulators.

The bench of Justice Farah Mahbub and Justice Debashish Roy Chowdhury issued the verdict on Wednesday, disposing of the rule on appointing a receiver.

Barristers Ruhul Quddus Kazal and Md Moniruzzaman represented Bangladesh Bank in court, while Barrister Masud R Sobhan appeared for the opposing side.

The High Court had earlier, on Sept 5, 2024, ordered the appointment of a receiver to oversee all Beximco Group companies.

The same order also directed Bangladesh Bank to take necessary steps to recover funds taken from different banks by Beximco Pharmaceuticals Limited’s founder Salman F Rahman and repatriate any laundered money.

Since the fall of the Awami League government on Aug 5, Beximco Group companies have faced turmoil.

Salman Rahman, former private industry and investment advisor to the ousted prime minister Sheikh Hasina and vice-chairman of Beximco Group, is currently in prison.

Labour and Employment Advisor M Sakhawat Hussain announced on Feb 27 that the interim government had formed a high-level committee to oversee the rehabilitation of 14 factories at Beximco Industrial Park, where layoffs were declared.

The plan includes settling Tk 5.25 billion in dues for 31,669 workers and 1,565 officials.

He also expressed hope that Beximco’s rehabilitation would soon begin with foreign investment.

The High Court ruled that Beximco’s thousands of workers would benefit if the group ran its own operations.

However, decisions made by the previously appointed receiver will remain valid.

The court also instructed Bangladesh Bank and other regulators to ensure proper oversight of Beximco companies.

Beximco Group has 189 companies, of which 169 are registered as public limited firms.

The initial order in August imposed a receiver for six months across these companies.

Later, the Appellate Division overturned the receiver appointment for Beximco Pharma. Wednesday’s ruling extended the decision to all other Beximco companies.