Bangladesh’s apex garment exporters’ body has directed its members to suspend new business transactions with an Indian company linked to the Aditya Birla Group after it allegedly failed to clear export dues worth $426,830 owed to a local manufacturer.
In a letter issued to member factories last month, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) instructed that no new dealings be undertaken with Styleverse Lifestyle Pvt Ltd and its related entities until the outstanding payment to Ducati Apparels Ltd is settled.
The association also warned that no Utilisation Declaration (UD) or Utilisation Permission (UP) certificates should be issued in favour of the company without prior approval from BGMEA.
According to BGMEA sources, Styleverse Lifestyle Pvt Ltd is a sister concern of the Aditya Birla Group, with the Indian conglomerate holding a 51% stake in the company.
The dispute stems from an order placed in December 2024 for 94,000 pieces of men’s joggers and cargo trousers. Ducati Apparels Ltd manufactured the goods, which were later inspected and accepted by a representative from Mumbai before being exported to India through the Benapole-Petrapole land port.
Md Khayer Mia, managing director of Ducati Apparels Ltd, said the two companies had been working together for around two and a half years, initially handling smaller orders.
“According to the agreement, acceptance was supposed to be given within five working days after customs clearance, but they did not provide it,” Khayer said.
He added that the buyer later raised concerns about product quality. “I offered to visit India and conduct a quality check, but they did not agree,” he said.
According to Khayer, Styleverse subsequently proposed reselling the goods to another customer. Ducati arranged for the resale based on that proposal, but the goods were not released, with the Indian company citing issues related to brand tags.
“Eventually, I decided to take back the goods, but when the company failed to return them, I filed a complaint with BGMEA after returning to Bangladesh,” Khayer said.
He noted that failure to repatriate export proceeds could expose him to allegations of money laundering and potential violations of bonded warehouse licence conditions.
Following the complaint, BGMEA contacted the company and also wrote to the commerce and foreign ministries, the Indian High Commission in Dhaka and the Bangladesh High Commission in Delhi.
The association invited Styleverse to attend arbitration proceedings in Dhaka. However, the company did not participate and instead sent a legal notice to BGMEA, according to the exporters’ body.
BGMEA also said it reached out to The Indian Garage Co, Aditya Birla Fashion and Retail Ltd and Grasim Industries Limited, as well as their representatives, but no resolution had been achieved. Despite repeated requests to join arbitration discussions, the buyer had not responded positively.
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As a result of the unpaid bill, Ducati Apparels Ltd has reportedly fallen into financial difficulty, BGMEA said in its communication to members.
The association advised all member factories not to enter into fresh contracts with Styleverse Lifestyle Pvt Ltd or its related entities until further notice. It warned that any member ignoring the directive would bear responsibility for potential complications.
A senior official at Bangladesh’s commerce ministry said authorities had written to relevant officials in India and were working to resolve the dispute as quickly as possible.
The Aditya Birla Group is one of India’s largest multinational conglomerates, with interests spanning metals, cement, textiles, carbon black, financial services and retail. Its fashion and retail operations are managed under Aditya Birla Fashion and Retail Ltd, which markets a portfolio of international and domestic clothing brands.
Ducati Apparels Ltd, a concern of the Hyacinth Group, manufactures denim trousers, woven bottoms and T-shirts for global brands.
BGMEA described the matter as urgent and said it was seeking cooperation from all concerned parties to ensure swift recovery of the outstanding export dues.
