The Department of Inspection for Factories and Establishments (DIFE) has issued a show-cause notice to DIRD Composite Textiles as the company failed to clear employee dues of Tk 70 million despite receiving loans facilitated by the labour ministry.
It issued the notice on January 2, asking for a response within three working days.
The notice signed by DIFE Labour Inspector (General) Md Romenul Islam said the government on December 10 last year arranged a Tk 130 million loan for the company from Standard Chartered Bank's Gulshan branch to clear employees' due wages.
The loan was granted based on the factory's application along with an intervention from the labour ministry, it added.
While Tk 60 million from the loan was disbursed to pay workers' wages and other legal dues on December 24 last year, officials' payments remained unpaid, the notice read.
"No agencies concerned, including DIFE, have been informed of the reason for the non-payment, creating uncertainties over officials' payments," noted the DIFE.
Such a situation could lead to protests, including road blockades, and hold the factory responsible for any ensuing public suffering, the notice warned.
DIFE directed the factory authorities to explain the non-payment with evidence and warned of legal action otherwise.
The company's Managing Director Nabeel Ud Daulah could not be reached for comments.
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