Despite Orion Group's substantial loan defaults across multiple banks, its chairman Obaidul Karim and his family members exhibit little to no respect for legal obligations regarding repayment.
Despite repeated warnings from Bangladesh Bank, the defaulted loans have not been regularised under the rescheduling facilities.
Obaidul Karim who has long enjoyed government patronage, has consistently ignored the opportunity to regularise the defaulted loans under special provisions.
Although several cases were filed against him in 2007-08 concerning the embezzlement of funds from Oriental Bank, he has managed to evade punishment through various means, emboldening him further. As a result, he continues to delay the repayment of loans borrowed from various banks using depositors' funds, displaying a cavalier attitude toward his responsibilities.
According to information from the relevant authorities, out of 33 registered companies under Orion Group, 24 have secured loans amounting to Tk11,470.60 crore.
Among these, 12 companies alone account for Tk7,339.60 crore in loans.
The amount of these loans that have already defaulted is Tk1,239.65 crore.
The remaining Tk4,131 crore in loans held by 12 other companies are currently classified as regular.
These loans were regularised in 2022 under the "special facility" provided by Bangladesh Bank. The controversial facility allowed the rescheduling of irregular or defaulted loans upon the payment of only 2.5% of the total outstanding amount in cash.
As per the latest updated information dated 31 July 2024, the largest loan and default amounts are associated with "Orion Oil and Shipping". This company has a total loan of Tk2,771 crore, of which Tk532 crore is in default.
The second-highest defaulted loan is in the name of Orion Power Unit-2 Dhaka Limited, with a total loan of Tk1,076 crore, of which Tk452 crore is defaulted. The third-highest defaulted loan is in the name of Orion Gas Limited, with Tk491 crore in loans, out of which Tk110 crore is in default.
Other significant defaulted loans include Orion Infusion Limited, a publicly listed company.
Out of a total loan of Tk359 crore, Tk90 crore is in default.
Additionally, Orion Group's subsidiary "Energon Renewables", which is involved in a solar power project in Bauphal, Patuakhali, has defaulted on Tk7.62 crore out of its total loan of Tk1,306 crore.
Further updated information reveals that Orion Power Rupsha Limited has a loan of Tk625 crore, of which Tk26 crore is in default. Orion Knit Textiles Limited has a loan of Tk230 crore, of which Tk14 crore is in default. Digital Power and Associates Limited has a loan of Tk340 crore, with Tk2.87 crore in default.
Another subsidiary, Cargo Maritime Limited, has completely defaulted on its loan of Tk2.60 crore. Star Associates, another subsidiary company, has defaulted on Tk1.50 crore out of its Tk20 crore loan.
Furthermore, Dutch-Bangla Power and Associates Limited, another subsidiary, has defaulted on Tk55 lakh out of its total loan of Tk102 crore, while Orion Footwear Limited has defaulted on Tk51 lakh out of its Tk17 crore loan.
Currently, Orion Group is chaired by Obaidul Karim, with his son Salman Obaidul Karim serving as managing director.
Obaidul Karim's wife, Arjuda Karim, and his two daughters, Zerin Karim and Nudrat Karim, are also directors in various companies under the group.
Anti-Corruption Commission (ACC) had been investigating allegations against the family members of laundering money abroad by taking loans from banks in a 2007 case.
They have repeatedly influenced the freezing of these investigations.
Sources indicate that the ACC found evidence of the family establishing businesses in Dubai, UAE, with the laundered money.
Attempts to contact Salman Obaidul Karim for comments before finalising this report were unsuccessful, as he did not answer his personal phone.
