A year after the fact, the S Alam Group is still embroiled in a dispute over 434 crore taka in unpaid customs duties on imported raw cane sugar. Despite four lawsuits filed by the Customs Bond Commissionerate to recover the money, the company has yet to settle the outstanding amount, reported The Business Standard.
The company has even appealed one of the cases, involving 246 crore taka, to the Customs, Excise and VAT Appellate Tribunal, raising concerns about the likelihood of the customs authorities recovering the funds in the near future.
To date, S Alam Group has paid 279 crore taka of the total 713 crore taka owed. The outstanding dues, incurred by its subsidiary, S Alam Refined Sugar Industries, have been accumulating since March 2024.
According to customs case documents, S Alam Refined Sugar Industries imported 55,800 tonnes of raw sugar in August 2023, valued at approximately 327 crore taka. The import duty for these shipments was 187 crore taka, which was due within six months under the Home Consumption Bond system.
However, the company failed to meet the payment deadline. As a result, the Chattogram Customs Bond Commissionerate filed a lawsuit against the company on March 5 of last year, under the Customs Act.
So far, customs authorities have filed four cases against S Alam Refined Sugar Industries for failing to pay import duties on raw cane sugar within the required timeframe.
In another case, on October 17, 2024, the Customs Bond Commissionerate ordered the company to pay 264 crore taka. However, S Alam appealed the decision, delaying the recovery process, according to Chattogram Customs.
Another case, filed on October 27, 2024, demanded payment of 204 crore taka, of which 92 crore taka has been paid. The most recent case, filed on November 18, 2024, involves outstanding dues of 76 crore taka.
Customs officials stated that in the case involving the 55,800 tonnes of raw sugar, S Alam later paid the 187 crore taka in duties but incurred an additional 1.16 crore taka in interest due to the delay. The Customs Bond Commissionerate has issued a show-cause notice regarding the unpaid interest.
SM Kabirul Islam, joint commissioner of Chattogram Customs Bond Commissionerate, said that S Alam Group officials have claimed their bank accounts are currently frozen, preventing them from making timely payments and reducing their raw sugar imports.
When contacted, S Alam Group’s Manager (VAT & customs) Didarul Alam declined to comment.
Last year, amid the issues of unpaid duties, S Alam Group announced the closure of eight factories in the sugar, steel, and bag sectors, citing unavoidable reasons. One of those factories was S Alam Refined Sugar Industries. However, the group later claimed that the factories were reopened.
Mohammad Borhan Uddin, head of Human Resources and Administration at S Alam Group, stated that he was unaware of the unpaid import duties but confirmed that the sugar refinery is operational.
According to National Board of Revenue (NBR) data, S Alam Group imported 360,052 tonnes of raw sugar in 2023, valued at 1850 crore taka, with a payable duty of 942 crore taka. However, in 2024, the group’s sugar refinery imported only 144,153 tonnes, with an assessed value of 902.31 crore taka and import duties amounting to 479.31 crore taka. Between January and February 18, 2025, S Alam Group imported just 2,900 tonnes of raw sugar, valued at 17 crore taka, with duties amounting to 9.42 crore taka.
Several senior S Alam Group officials, speaking anonymously, stated that difficulties in obtaining financial support from banks have hindered their ability to import raw materials.
Reports indicate that banks are no longer willing to do business with S Alam, leading to the closure of its oil and sugar factories.
S Alam Group’s Chairman Saiful Alam Masud, believed to have close ties with former Prime Minister Sheikh Hasina, had previously expanded the group’s influence over multiple banks and insurance firms.
Following the change of government, several company officials, including Saiful Alam Masud and his brothers, are believed to have gone into hiding or left the country, exacerbating the group’s financial difficulties.
Without bank support, the group’s ability to import raw materials has been significantly affected, with raw sugar imports dropping by nearly 60% in 2024 compared to the previous year.
