The government has warned that it would take strict legal action against owners of garment factories that fail to repay interest-free loans provided to cover workers’ overdue wages by December.

Labour and employment adviser M Sakhawat Hussain on Wednesday issued the warning during a meeting at his secretariat office, according to a statement from the labour ministry.

The meeting was attended by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Mahmud Hasan Khan, owners and representatives of the borrowing factories, secretaries from the ministries of finance and banking and financial institutions, and a representative from Bangladesh Bank, among others.

Sakhawat said that the government had provided interest-free loans through the finance division and the Central Fund under the labour ministry to factories that had failed to pay wages, in order to prevent labour unrest.

However, he said many factories, including Birds Group, TNZ Group, Beximco Group, Dird Group, Niagara Textiles Ltd, Roar Fashion Ltd, Mahmud Jeans Ltd, Style Craft Ltd, and Gold Star Garments Ltd, had not repaid the loans as agreed.

‘The government will take a tough stance against them. Measures will be taken to seize passports,’ he warned, adding that steps have already been taken to issue Interpol red alerts against some absconding owners.

The adviser also instructed authorities to suspend passports of fugitive factory owners and their top officials.

‘The money given as loans is the money of workers and taxpayers,’ Sakhawat said, giving a December deadline for repayment.

He emphasised that no concessions would be made and urged factory owners to repay the loans by selling factories, land, or machinery if necessary, in coordination with their respective lien banks.

Sakhawat also called on BGMEA and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) to act as mediators and ensure effective repayment measures.

According to sources, the government provided a loan worth Tk 5.25 billion to Beximco Group alone to pay its 31,669 workers and 1,565 officials.