S Alam Group mortgaged CDA plot to secure loan, ACC probe finds

A long-abandoned plot in Chattogram's Agrabad CDA residential area, left unused for nearly 25 years, has become the focus of an Anti-Corruption Commission (ACC) investigation.

The land, originally leased by the Chattogram Development Authority (CDA) for a residential project, was never developed, according to the ACC. Instead, it was mortgaged to secure a large bank loan under the name of S Alam Trading – a concern of the S Alam Group.

On Wednesday, an ACC team raided the CDA office and seized documents related to the lease, officials confirmed. Legal action is now being prepared against those involved.

Hamed Reza, sub-assistant director of the ACC's Chattogram office who led the operation, told The Business Standard, "S Alam Trading mortgaged a total of 18 properties, including 101.87 kathas of CDA-leased land, to secure a Tk1,000 crore loan from Janata Bank's Corporate Branch in Chattogram. The mortgaged assets were valued at Tk600 crore, while the current outstanding loan exceeds Tk1,900 crore."

Lease violation, concealed dealings

According to ACC findings, the CDA had leased 101.87 kathas of land on 24 August 2004 to two companies, Modern Properties Ltd and Hasan Abashon Pvt Ltd, on the condition that a multistorey residential complex be built within two years.

But no construction ever took place. Instead, in 2020, the leaseholders obtained a no-objection certificate (NOC) from CDA to mortgage the land, later using it to secure financing from Janata Bank under the name of S Alam Trading, owned by S Alam Group Chairman Saiful Alam Masud.

Investigators believe the two leaseholding firms were effectively family-run fronts of the S Alam Group. 

Modern Properties Chairman Ahsanul Alam is Saiful Alam's elder son, while Hasan Abashon Managing Director Abdullah Hasan is his younger brother.

Ahsanul, who became chairman of Islami Bank Bangladesh Limited in June 2023 after previously serving as chairman of Union Bank, reportedly left the country earlier this year amid political unrest following the fall of the Awami League government.

ACC Deputy Director Subel Ahmed told TBS that during a site visit, investigators found two commercial establishments, Chowdhury Super Shop and Royal Autocar, operating on the leased land.

"The plot was meant for residential use, but it's being used commercially in clear violation of lease conditions. CDA was aware of the misuse but took no action," he said.

CDA under scrutiny

The ACC is now examining whether CDA officials were negligent or complicit in allowing public land to be misused.

"Despite repeated violations, CDA took no legal steps against the leaseholders," said Hamed Reza. "We will submit a detailed report to the headquarters for further action."

Reza added that Hasan Abashon Pvt Ltd has already defaulted on its loan, and investigators are tracing how the mortgaged land was used to channel funds to S Alam Trading and whether the money was diverted.

This latest case adds to a growing list of allegations against the S Alam Group, which has long faced scrutiny for using political connections to secure large loans and gain control over financial institutions through proxies.