Orion sues Independent Television for Tk500cr again over misleading reports

The Orion Infrastructure Limited has filed another Tk500 crore defamation case against Independent Television over misleading reports aired by the broadcaster regarding a flyover project.

Independent Television, its Editor-in-Chief and CEO M Shamsur Rahman, and reporter Mahmud Sharif were accused in the lawsuit filed with the 4th Joint District Judge Court of Dhaka.

The legal action follows the airing of "defamatory and baseless allegations" on 18-19 September concerning Orion's flagship project, the Jatrabari-Gulistan Flyover, a statement issued by the company, a concern of Orion Group, said on Tuesday (24 September).

"The reports broadcasted by Independent Television contained false and misleading claims, including accusations regarding shareholder removal, escalated project costs, and mismanagement of toll collections," said the statement.

It added that despite issuing both a formal rejoinder and a legal notice, Independent TV failed to rectify these inaccuracies, compelling Orion Infrastructure to pursue legal recourse to protect its reputation.

Orion Infrastructure categorically denies all allegations, the statement reads.

"The claims concerning shareholder removal, cost escalations related to financing, and toll collection irregularities are entirely fabricated," Orion said.

Orion Infrastructure states that Belhasa Accom & Associates Ltd was incorporated with a paid-up capital of Tk5 crore, divided into 5 lakh shares of Tk100 each. Belhasa Engineering and Contracting Co, represented by Majed Ahmed Saif Belhasa, and Belhasa International Co, represented by Mojibul Huq, held 2 lakh shares each, totalling 4 lakh shares (80%). 

Obaidul Karim and his son Salman Obaidul Karim, and son-in-law Mehadi Hasan held 50,000, 25,000 and 25,000 shares, respectively, totalling 1 lakh shares. The board resolved to increase the paid-up capital by Tk95 crore, resulting in the issuance of 95 lakh additional shares. The company's paid-up capital was Tk100 crore, with Belhasa contributing Tk7 crore, amounting to 7% of the total shareholding. Thereafter, the company was re-named from "Belhasa Accom and Associates Limited" to "Orion Infrastructure Ltd." 

Orion seeks to emphasise that the shareholding changes that occurred in 2005 were fully transparent and made in accordance with essentials for meeting the equity requirements of the project and all relevant parties.

"These misrepresentations appear to be part of a deliberate attempt to undermine the credibility of the first successful Public-Private Partnership (PPP) infrastructure project in Bangladesh," it said.

"Such defamatory reporting has caused severe reputational harm and could potentially discourage private investment in the country's infrastructure sector, jeopardising broader socio-economic development," it added.

In the statement, Orion Infrastructure said it considers "these unfounded allegations not only a direct attack on its corporate integrity but also detrimental to national interests".

"It is critical to set the record straight to safeguard both the reputation of the company and continued progress in Bangladesh's infrastructure development."

Moreover, it noted that this is not the first instance of such defamatory broadcasting by Independent TV.

On 19 September, Orion Group filed a Tk500cr defamation suit against the channel for making false claims about Orion's six power companies.

The case is currently under judicial review.

The Orion Infrastructure statement said the company remains committed to upholding the highest standards of transparency and accountability and will take all necessary steps to ensure that justice is served, and that responsible journalism is upheld.