The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has asked its member factories to refrain from doing business with four Indian companies as one of the buyers allegedly failed to pay for goods already shipped.
The alert came after Styleverse Lifestyle Pvt Ltd did not pay a local exporter, Ducati Apparels Ltd, despite it having exported garments to the company, sources said.
The apparel apex body issued the instruction through a notification on Saturday, naming the companies as Indian Garage Co, Styleverse Lifestyle Pvt Ltd, Aditya Birla Fashion and Retail Ltd and Grasim Industries Limited.
"Styleverse Lifestyle Pvt Ltd, a sister concern of the Aditya Birla Group, has failed to settle outstanding export payment amounting to US$426,830.66 despite completion of the export shipment," the notification said.
As a result of the unpaid export bill, the exporting company has reportedly been facing significant financial, commercial and social hardship, it added.
When asked, BGMEA president Mahmud Hasan Khan said the association had repeatedly attempted to resolve the matter amicably and contacted senior officials of the four companies on several occasions.
"But they did not pay the local factory," he said.
Talking to the FE, Managing Director of Ducati Apparels Ltd Md Khayer Mia said Styleverse Lifestyle placed work orders for 94,000 pieces of woven items in December 2024 and the goods were shipped in April through the Benapole-Petrapole border.
The customs authorities usually release goods after receiving the required documents from banks, but the Indian customs released the shipment without such documents, he alleged.
When he contacted Styleverse, it raised product quality complaint, although the goods had been inspected by its representatives before shipment, said Mr Khayer.
Later, the company made various excuses and eventually did not pay about US$0.42 million (around Tk 50 to 55 million), he said, adding that he subsequently lodged complaints with BGMEA, the Indian High Commission and relevant ministries in both countries.
In the notification, BGMEA said the company's failure to participate in the arbitration process has created financial risk and commercial uncertainty for its member factories.
As the foreign buyers continue to conduct business with other BGMEA member factories, such dealings could expose them to potential financial risks in the future, it said, urging members to refrain from entering into any new business transactions with the four companies and their representatives.
BGMEA also warned that if any party proceeds with business dealings despite the advisory, the individual or company concerned will be responsible for any subsequent complications.
The association further asked members to obtain its approval before issuing utilisation declarations (UD) in favour of these companies.
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