Khatunganj trader flees after allegedly defrauding businesses of Tk100cr

A trader in Chattogram’s Khatunganj, the largest wholesale market in the country, has been accused of defrauding fellow businessmen of around Tk100 crore.

Affected traders allege that Md Sarwar Uddin, proprietor of Messrs Ayan Trading, which deals in wheat in Khatunganj’s Haji Market, failed to settle outstanding payments.

Cheques issued by Messrs Ayan Trading for purchased goods have bounced since last Sunday. The trader is currently absconding, and his mobile phone is unreachable, they say.

A crowd gathered outside Ayan Trading on the third floor of Khatunganj’s Haji Market on Tuesday.

An employee from a nearby Adnan Trading said their company is owed several crores of taka by Ayan Trading.

“Cheques issued by Ayan Trading have bounced for the past three days, and Sarwar is unreachable,” the employee said on condition of anonymity.

Local shopkeepers confirmed that Sarwar hasn’t been seen at the market since Sunday and creditors continue to arrive at the shop daily in search of him.

Mohsin Belal, a Chaktai-based rice trader and owner of Messrs Makkah Store, told TBS that creditors have met with the Khatunganj Trade and Industries Association to report the issue.

“Legal action is being considered if a resolution isn’t reached,” he said.

An official of Messrs Ayan Trading said the company has been involved in the trade of wheat, edible oil, and sugar for a long time. Recent market instability due to ongoing unrest has impacted business over the past month.

The official claimed that the company is in trouble as some traders owe them money, and a substantial amount is owed by an influential businessman and business organisation leader.

Syed Sagir Ahmad, general secretary of the Khatunganj Trade and Industries Association, acknowledged news of a missing wheat trader but confirmed that no formal complaint has been filed.

Jamal Hossain, organising secretary of the association, described the intricate network of transactions in Khatunganj based on trust, where cheque-based dealings are prevalent.

He said the disappearance of one trader can disrupt the entire chain. He attributed the current crisis of trust to a series of trader disappearances over the past decade and a half, which has eroded the once-solid foundation of the Khatunganj market.

In early June, Nazim Uddin, owner of Noor Trading in Khatunganj’s Sonamia Market, was accused of absconding with around Tk50 crore in unpaid dues to traders.

Traders allege that since 1986, at least 68 traders have defaulted on payments within the market, collectively embezzling over Tk1,500 crore from fellow businessmen.