Closed factory owners in Rajshahi Bscic profit from illegally renting out facilities

Haque Rice Mill in Rajshahi Bscic Industrial Estate in Sopura, once a profitable factory, was closed in 2017 over a large loan. However, instead of handing over the plot to the authorities, the mill owner set up 25 small houses on one side of the plot and rented them.  Apart from that, the owners also rented the factory premises to two small businesses.

The factory owner earns around Tk70,000 per month from the houses. Besides, they also earn Tk20,000 per month by renting the factory premises to a scrape business and a gunny bag factory.

Many proprietors inside the Bscic industrial city closed down their factories due to various reasons, but illegally rented them out to others. Alongside the renting houses to tenants, they also rent factory infrastructures to businesses like laundry, furniture, sawmills and spice shops.

Rajshahi Bscic Industrial Estate Officer Anwarul Azim said the service charge is T3 per sq feet for a Bscic plot, but many owners, especially those whose factories are closed, do not pay any charge. Currently, a number of companies owe the authorities around Tk4.5 crore as service charge. Meanwhile, they have been earning money illegally by renting out their facilities.

According to Bscic data, 15 out of 200 factories located there were officially closed but the owners have illegally rented the facilities to others. However, visiting the area, our correspondent found that the owners of at least 50 plots have rented them to others without informing the Bscic authorities.

Md Ujjal, one of the people living inside the Haque Rice Mill, told TBS that he rented a three-room house for Tk3,000 monthly rent, which was cheaper compared to houses in other areas.

Sharif Uddin Chowdhury, chairman of Haque Rice Mill, told TBS that he would sell the plot if he got Tk30 crore.

He initially denied renting the place, but when the name of the businesses operating on his plot were mentioned, he said since the place is lying unused, he let two companies run their business temporarily. However, he denied renting houses to the people all together.

Munjur Rahman, a furniture trader said he rented space from Bishal Food Industries located inside the estate for Tk10,000 monthly rent.

Tuhin Ali, manager of BM Enterprise, told TBS he has been running business for nine years in a warehouse rented from the Bishal Food Industries.

Faisal Bin Mahbub, proprietor of Bishal Food Industries, said that they were thinking of operating  a business on that plot, but currently they were not able to do it due to a bearish trend in the economy. So, they rented the place.

Anwarul Azim, officer of Rajshahi Bscic Industrial Estate, told TBS, "There is a rule to rent plots subject to the approval of the Bscic, but most owners were renting their plots illegally without informing us, which we have informed the higher authorities."

He said 10 families built houses on their plots and lived illegally. A number of such plot owners have been evicted. In a meeting presided over by the deputy commissioner, officials concerned were asked to take action against a number of other families who are still living inside the factory premises.

"We are preparing a list of the owners who rented their plots illegally. Besides, the process of handing over several closed factories is underway. So they are not listed as closed facilities," he said.

Many successful entrepreneurs want plots but we cannot provide them, while many people are renting their plots illegally, he added.

Abdul Gani, owner of AG Plastics and Industries, said, "It would be convenient for me to do business if I had an industrial estate plot as my factory is expanding. Lack of space has been limiting the growth of my business."

Abdul Malek, general secretary of Bscic Industry Owners Association, said one has to wait for a long time to rent a plot with the Bscic's approval as the local office cannot give permission in this regard. It requires permission from the Dhaka office, which is difficult. In spite of the difficulties, many owners have applied to the Dhaka office for renting out their places, but those are pending.

He said, "Bscic does not provide any service to us. We used to pay Tk500 service charge per acre till 1990, but currently we have to pay Tk2.5 lakh taka per acre every year. As a result, many are forced to live inside factories.