Thermax Group’s wealth increased dramatically by extracting funds from state-owned banks. Disguised as a philanthropist, Abdul Kadir Molla, the controversial businessman and chairman of the Group, has amassed a fortune by securing large loans from banks for his numerous enterprises.

Despite being listed as defaulters by Bangladesh Bank hundreds of times, Molla, his wife Nasima Begum, and family member Nahida Sultana have been exonerated due to court stay orders.

To date, thermax Group has filed 321 writ petitions in the High Court seeking to stay on the central bank's defaulter list, according to the sources. The stay orders, however, will expire on June 28, potentially leading to his status as a loan defaulter.

However, Bangladesh Bank spokesperson Mezbaul Haque mentioned that Molla might once again evade the defaulter list with the help of influential connections. Viewed as an oligarch fostered by the ruling Awami League, Molla saw his loans skyrocket due to political leverage, increasing from Tk 3,000 crore to Tk 10,000 crore over the last 10 years, according to documents obtained by The Mirror Asia.

Benefitting from court-issued stay orders, Molla secured substantial loans from state-owned banks, presenting himself as a major donor to educational and religious institutions while neglecting loan repayments. The court’s stay orders helped turn a significant amount of his loans overdue or unpaid under various financial facilities.

Of the total loans, the company’s 18 subsidiaries owe Tk 7,000 crore to various banks, including about Tk 4,000 crore borrowed under the export development fund facility and additional non-funded liabilities such as letters of credit and bank guarantees amounting to Tk 677 crore. Of the loans, more than Tk 1,634 crore has turned overdue, and Tk 47 crore has been classified as substandard and bad loans.

Adury Apparels Ltd borrowed over Tk 371.59 crore, of which over Tk 39 crore has turned overdue and liabilities worth Tk 240 crore remain unpaid. Over Tk 81 crore has been borrowed from various banks in the name of Adury Net Composite Ltd. Of this, over Tk 7.7 crore has become defaulted, and about Tk 8 crore remains unpaid in various banks due to letters of credit and guarantees.

More than Tk 103 crore has been issued in the name of Indigo Spinning Ltd. Of this, over Tk 4 crore has turned overdue, with liabilities worth over Tk 19 crore left unpaid in terms of letters of credit and guarantees.

Additionally, over Tk 141 crore was borrowed from another account in the name of the same subsidiaries. Of this loan, over Tk 31.64 crore has already turned into bad loans, with about Tk 20 crore overdue and almost Tk 3 crore in liabilities due to letters of credit and guarantees. Through six writs in the High Court, he obtained a stay order to prevent these loans from being declared bad.

Thermax Knit Yarn Ltd received loans amounting to more than Tk 309 crore. Of this, over Tk 167 crore has turned overdue, and Tk 2 crore has been classified as special doubtful loans. Bangladesh Bank declared Molla a defaulter for this loan, but he obtained a moratorium on the Tk 241.68 crore loan through 53 writ applications in the High Court. However, he has not yet repaid any portion of the loan.

In the name of Thermax Spinning Ltd, Thermax Group borrowed over Tk 889 crore. Of this, Tk 457 crore in loans has turned overdue, over Tk 21.5 crore has been classified as special doubtful loans, and over Tk 34 crore remains unpaid as letters of credit and bank guarantees.

Additionally, Thermax Group borrowed more than Tk 2,000 crore in the names of Sister Composite Unit-2, Sister Denim Composite Ltd, Blended Yarn Ltd, Thermax Check Fabrics Ltd, Asa Thermax Color Cotton Ltd, Thermax Mélange Mills Ltd, Thermax Textile Mills Ltd, Thermax Oven, and Thermax Yarn Dye Fabrics Ltd. A substantial amount of these loans have defaulted.

The more Bangladesh Bank identified Thermax Group as a loan defaulter, the more Molla secured stay orders from the High Court to avoid being listed as a defaulter by the central bank.

According to the amended Bank Companies Act (2023), deliberate non-repayment of loans qualifies one as a willful defaulter. Despite considerable export earnings, Thermax Group fails to repay state-owned bank loans, instead seeking special facilities for loan renewal. The Banking Companies Act prohibits defaulters from being bank directors, yet Molla remains a director of SBAC Bank.

Thermax Group allegedly opened the LCs in the state-owned banks but brought export earnings through SBAC Bank. This mechanism increased its debt to the state-owned banks due to the non-payment of LCs.

Former Bangladesh Bank Governor Dr. Mohammad Farasuddin criticized the weak enforcement of laws against defaulters, exacerbated by high court leniency. Transparency International Bangladesh Executive Director Dr. Iftekharuzzaman attributed the issue to the lack of rule of law and called for regulatory authorities and the government to take responsibility and initiative in addressing the problem.