International Leasing and Financial Services Ltd (ILFSL) is going to sell Reptiles Farm Ltd at Tk 38.20 crore to Uddipan, a non-government organisation, in order to recover its loan to the crocodile farm.

The farm is situated on 13 acres of land in Mymensingh's Bhaluka upazila and houses around 3,700 reptiles.

In fiscal year 2015-16, the leasing company lent Tk 57.87 crore to the reptile farm, which was run by then-managing director PK Halder.

Of the principal amount, the reptile farm repaid Tk 20 crore. Accounting for interest, the reptile farm still owes the ILFSL Tk 110 crore.

The reptile farm has some other tangible assets and investment in shares, which also will be sold to recover the loans, said Md Nazrul Islam Khan, chairman of the ILFSL.

"We are trying to recover its loans so that we can refund depositors'," he said while speaking to journalists after the asset documents transfer ceremony at the ILFSL's head office in the capital.

The leasing company will reinvest 50 percent of its sales proceeds. Some 25 percent will be repaid to depositors seeking their funds while the rest will be used for administrative costs, Khan said.

In 2020, a pall of gloom clouded the farm as reptiles became skinny due to a lack of proper feeding, prolonged neglect and carelessness.

After the ILFSL's new board came, it revived the farm, raising the number of reptiles from 1,700 to 3,700.

Consequently, the farm's valuation soared.

In the first round of bidding, a company bid Tk 25 crore for the farm.

However, the ILFSL board thought it warranted a higher price.

As a result, it called for a second round of bidding, where Uddipan won with the highest bid.

"We are happy with the price as it covers the recovery of the principal amount of the loan to the company," Khan added.

ILFSL's acting Managing Director Md Mashiur Rahman handed over the documents to Bidyut Kumar Basu, executive director & CEO of Uddipan.

Rahman said the leasing company will complete the transfer of the reptile farm, including registration of the land, within 90 days.

In 2021, the High Court reconstituted the board of directors of the ILFSL, which landed in trouble due to loan irregularities.

The new board is working to revive the non-bank financial institution.