M Kamal Uddin Chowdhury

Full Report

Key Points

• M Kamal Uddin Chowdhury, founder and chairman of Clifton Group, faces a court-ordered seizure of his personal residence in Chattogram due to a defaulted loan exceeding Tk69 crore from BASIC Bank.
• The case, filed in 2018, involves MRF Trade House Limited, a company under his leadership, and highlights broader issues of loan non-repayment in Bangladesh’s garment sector.
• Clifton Group, a major player in the ready-made garments industry, operates as a vertically integrated manufacturer but has limited public transparency on financial health amid rising defaults in the sector.

Overview

M Kamal Uddin Chowdhury is a prominent Bangladeshi entrepreneur and the founder of Clifton Group, established in 1985 in Chattogram. A former professor at Government City College, Chattogram, he has built the group into a vertically integrated knitwear and apparel manufacturer, specializing in intimate apparel, sleepwear, knit dresses, tops, and sports bras. The group encompasses multiple subsidiaries, including Clifton Apparels Ltd. (a composite unit handling knitting, dyeing, printing, and embroidery), Deluxe Fashions Ltd., Clifton Textiles and Apparels Ltd., and CAL Knitting. With an annual capacity supporting significant exports, Clifton Group focuses on reducing lead times through its one-stop production model, serving international markets in the fashion industry.

Allegations and Concerns

• Primary concern stems from a 2018 money loan case filed by BASIC Bank against Chowdhury and associates in MRF Trade House Limited, accusing them of defaulting on a Tk69.55 crore loan; this led to a recent court order for asset seizure.
• No additional formal allegations of corruption or fraud were identified, though the case raises red flags about financial mismanagement in affiliated trading entities.
• Broader sector scrutiny in Bangladesh’s RMG industry includes calls for exemplary punishment of defaulters, positioning high-profile figures like Chowdhury under increased regulatory watch.

Customer Feedback

Publicly available consumer reviews specific to Clifton Group in Bangladesh are scarce, as the company primarily operates in a B2B model supplying to international brands rather than direct-to-consumer sales. Employee and partner feedback, drawn from industry profiles, highlights operational strengths like efficient production but notes limited advancement opportunities in certain departments. One internal assessment praises the “fun, friendly atmosphere” and knowledgeable staff, while critiquing stagnant career paths in accounting roles. No widespread negative consumer complaints surfaced, though isolated sector-wide issues in RMG, such as supply chain delays, could indirectly affect perceptions.

Risk Considerations

Financial risks are elevated due to the outstanding defaulted loan, which could trigger further asset freezes, liquidity constraints, and restricted access to new credit in a sector already strained by raw material price hikes and global supply disruptions. Reputational damage may arise from association with loan defaults, potentially eroding trust among international buyers who prioritize ethical sourcing and financial stability. Legal risks include escalation of the current case to arrest warrants or broader investigations, compounded by Bangladesh’s aggressive stance on high-value defaulters, as seen in similar enforcement actions against other conglomerates.

Business Relations and Associations

Chowdhury leads as chairman of MRF Trade House Limited, with family and business ties including directors Kaniz Farzana Rashed and Murshed Murad Ibrahim in the loan case. Clifton Group’s board includes managing director Md. Mohiuddin Chowdhury, who also serves as CEO and a director in the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The group maintains export partnerships with major global apparel brands, though specifics remain undisclosed; it emphasizes compliance certifications and focuses on markets in Europe and North America. Community engagements include educational and environmental initiatives, but no high-profile joint ventures or political affiliations were noted beyond industry associations.

Legal and Financial Concerns

The central legal issue is the 2018 BASIC Bank lawsuit against Chowdhury, MRF Trade House MD Rashed Murad Ibrahim, and other directors for failing to repay Tk69.55 crore, culminating in a Chattogram Money Loan Court’s seizure order on his residence issued by Judge Mujahidur Rahman. No bankruptcy filings or additional lawsuits were recorded, but the case aligns with a pattern of Tk11,300 crore in vanished loans across Bangladesh’s business elite, involving asset smuggling and migration abroad. Financially, this exposes vulnerabilities in group subsidiaries reliant on bank financing, with no public disclosure of total debt exposure.

Risk Assessment Table

The situation underscores a precarious balance for Chowdhury and Clifton Group, where a single high-value default amplifies systemic pressures in Bangladesh’s RMG sector—responsible for over 80% of exports yet plagued by debt burdens exceeding Tk1 trillion. While the group’s foundational strengths in production efficiency provide a buffer, unresolved financial entanglements threaten long-term viability, potentially forcing divestitures or restructurings. This case exemplifies how personal liabilities can cascade to corporate stability, urging stakeholders to monitor enforcement trends for preemptive risk mitigation.