The High Court has called for all the documents of Belhasa Accom and Associates Limited alias Orion Infrastructure Limited, a joint-venture company which constructed the Jatrabari-Gulistan flyover, for alleged irregularities in share transfers and bank borrowings.
The Office of the Registrar of Joint Stock Companies and Firms (RJSC) has been asked to submit the documents following a suit filed by the JV's Dubai partner.
The High Court bench of Justice Sikder Mahmudur Razi passed the order on July 15 after hearing a petition filed by Dubai-based construction firm Belhasa Engineering and Contracting Company LLC, a partner of the joint venture.
Barrister Raghib Rauf Chowdhury, who is representing Dubai's Belhasa in the court proceedings, confirmed the court order.
The lawyer stated, "Belhasa Engineering and Contracting Company was the lead partner in the joint venture, holding a 40-percent share. During the construction of the flyover, in violation of applicable rules and regulations, Accom Engineering Limited, a company under the Orion Group and the local partner in the joint venture, transferred a substantial portion of shares to other parties and secured a loan of Tk 22.5 billion from six banks."
The Managing Director of Belhasa Engineering and Contracting Company, who also served as a Director of the joint-venture company, was removed from the board in 2012 by the local partner. Consequently, Belhasa Engineering's approval was not obtained in relation to the loan, the lawyer added.
In court, Belhasa Engineering's legal counsel argued that, despite generating significant revenue from the Jatrabari-Gulistan Flyover after its inauguration, Orion Group had taken no steps to repay the loan. As a result of the default, 73 per cent of the shares are now held by six banks.
The liability for the loan has also fallen on Belhasa Engineering and Contracting Company, as it holds 40-percent stake in the joint venture.
The lawyer claimed during the tenure of the Awami League government, Belhasa officials were unable to assert their rights or claim their shares in the joint venture. Instead, they faced harassment that prevented them from pursuing their interests, he alleged. Recently, the company initiated legal action to protect its stake and filed a lawsuit in this regard.
Following a preliminary hearing, the High Court ordered the submission of all records related to the joint venture.
According to the petition filed with the High Court, the joint-venture company, without consulting its Dubai-based partner, secured the loans of Tk 5.0 billion from Agrani Bank, Tk 5.0 billion from Sonali Bank, Tk 6.0 billion from Janata Bank, Tk 500 million from ICB Bank, Tk 500 million from SIBL, and Tk 5.5 billion from Rupali Bank.
Earlier in October last year, the government had blocked the transfer of shares of seven corporate giants, including the Orion Group of companies.
bikashju@gmail.com
