Bashundhara chairman, MD face CID probe over money laundering, land grabbing allegations

The Criminal Investigation Department (CID) will investigate allegations of land grabbing and laundering of thousands of crores of taka abroad against Bashundhara Group Chairman Ahmed Akbar Sobhan and his son Sayem Sobhan Anvir. The latter is managing director of the business giant.

The Financial Crime Unit of the CID – a specialised intelligence and investigation wing of the Bangladesh Police – will carry out the probe, according to a press release issued by the agency today (5 September).

"The CID has decided to investigate money laundering on the basis of allegations of fraud, forgery, duty evasion, value-added tax (VAT) evasion, under-invoicing, over-invoicing, and embezzlement amounting to thousands of crores of taka against various companies connected to Bashundhara Group's interests," reads the press release.

Bashir Uddin, special superintendent of police and head of the Financial Crime Unit, told The Business Standard, "We will investigate allegations related to trade-based money laundering, extortion, and other offences covered under our money laundering laws."

He added, "We usually receive complaints from the media as well as from various government departments." 

The press release says it is known from various sources that although part of the proposed land for the Bashundhara residential projects has approval from Rajdhani Unnayan Kartripakkha (Rajuk), most of it was developed without Rajuk's approval by filling public and government properties, such as canals, wetlands, rivers, khas land, wasteland, graveyards and killing fields.

In the case of "Bashundhara Riverview," there are allegations of hundreds of crores of taka being taken from the public, as well as affluent members of society, through the sale of plots on illegally grabbed and filled land, without approval from Rajuk, a government agency responsible for coordinating urban development in Dhaka, the press release added.

The CID said there are allegations that East West Property Development (Pvt) Ltd, a unit of Bashundhara Group, grabbed land in various blocks of the Bashundhara residential area, estimated to be worth more than Tk1.5 lakh crore.

"Bashundhara Group resorted to various types of fraud and forgery to take possession of these lands. The group has been accused of illegally grabbing a total of 1,016 acres, including 800 acres (2,400 bighas) of government khas land, canals, and rivers within the Bashundhara residential area, and 216 acres of the Bhawal Raj Estate," it added.

The agency said various sources have reported that Bashundhara Group obtained loans amounting to over Tk42,000 crore from several scheduled banks by resorting to fraud and forgery, without providing sufficient collateral. The group allegedly inflated the value of each katha of land to Tk3 crore, despite purchasing them for Tk20-25 lakh per bigha. 

A significant portion of this money was reportedly laundered to various countries, including Dubai, Singapore, Cyprus, Britain, and Malaysia. Sadat Sobhan Tanvir, the eldest of Akbar Sobhan's four sons, oversees Bashundhara Group's Singapore office, it added. 

There are allegations against the group that it has taken thousands of crores of taka in loans from various banks without repaying them.

The CID said Bashundhara Oil and Gas (Keraniganj, Dhaka) is accused of importing bitumen worth approximately Tk2,000 crore from abroad through trade-based money laundering. The imported bitumen was then allegedly distributed throughout Bangladesh via a monopoly controlled by a powerful syndicate, which manipulated the prices at will.