Titas Gas Transmission and Distribution Company has initiated procedures to disconnect gas supply to the Meghna Group to recover outstanding dues totalling Tk862 crore, according to company sources.
The connection to Meghna Sugar Refinery Limited is likely to be the first to go, confirmed Titas officials.
A senior executive disclosed that Dr Faozul Kabir Khan, adviser to the Ministry of Power, Energy and Mineral Resources, has called for stern action on all unpaid utility bills.
In a 16 April meeting on reducing system loss, distribution companies were instructed to issue demand letters to all public and private defaulters.
Shahnewaz Parvez, managing director of Titas, said that orders had been issued to take decisive measures for bill recovery.
“Actions are being taken against all defaulters,” he said. “You’ll soon see the results.”
Sources within Titas alleged that Meghna Group has for years used its economic clout and political ties to blackmail the company into inaction.
“They argue that disconnecting gas would jeopardise massive employment, and they use that as a shield,” said one official.
“While other companies pay interest on bank loans, Meghna uses unpaid gas bills as capital. When we try to cut their line, they send pressure from all quarters — even instigating workers to attack us. Several such incidents have occurred recently.”
The culture of impunity reportedly extends to sabotage.
“Any official who dares to act faces retaliation,” said another source.
“They spend lavishly to get officials transferred. Some colleagues are complicit, quietly collecting commissions and advising them how to delay payments. A few have even filed frivolous lawsuits to tie up recovery in court.”
Titas data shows Everest Power Limited, part of the Meghna Group, owes Tk770 crore, while Meghna Sugar Refinery owes Tk92 crore. Despite repeated reminders, Titas has been unable to recover the dues.
Everest Power began operations as a captive power plant in 2010, and according to sources, its gas connection was approved through the direct intervention of ousted prime minister Sheikh Hasina — an "open secret" in energy circles.
The prime minister even personally inaugurated the facility, which raised eyebrows among sector officials.
Initially set up with a 25MW capacity, Everest expanded in 2014 to 50.7MW and was converted from a captive plant to a small independent power producer (IPP). It sells electricity to the Bangladesh Rural Electrification Board and various factories in the Meghna Economic Zone.
According to the Bangladesh Energy Regulatory Commission (BERC), gas bills for power sold to REB must be paid at the IPP rate, while gas used for internal consumption must be billed at the captive rate.
However, Everest has flouted these regulations, continuing to pay only at the lower captive rate.
“The situation must be resolved,” said Titas MD Shahnewaz Parvez.
“It is unacceptable that such a large entity continues to evade payment using pressure tactics. The company has severely harmed Titas, and we are now preparing for a hardline stance.”
Backed by its closeness to the Awami League government, Meghna Group has long operated with impunity.
Despite reaping billions from edible oil and other syndicated products, successive governments have turned a blind eye.
Allegations of under-invoicing, VAT evasion and massive capital flight swirl around its chairman, Mustafa Kamal.
On 8 April, the Anti-Corruption Commission (ACC) launched a formal probe into allegations that the group laundered foreign currency worth the equivalent of Tk80,000 crore
Bangladesh Financial Intelligence Unit (BFIU) followed suit, instructing banks and financial institutions on 10 April to freeze accounts belonging to Mustafa Kamal, his wife Beauty Akter, and their children. Authorities were also ordered to freeze accounts of any companies operated solely in their names.
Alongside the unpaid gas bills, Titas has unearthed massive unpaid loans linked to the group.
