Saifuzzaman Chowdhury's £170m property empire in UK enters bankruptcy amid corruption probe

Six property companies in the United Kingdom, owned by former Bangladeshi minister Saifuzzaman Chowdhury, have entered administration. The development comes amid an ongoing investigation by Bangladeshi authorities, who allege that Chowdhury moved illicit funds to the UK.

In the UK, "administration" is a legal process used when a company cannot pay its debts, and is the same as filing for bankruptcy in the US. An appointed administrator takes control of the business with the aim of recovering money for creditors, either by restructuring the company or selling its assets, says the Telegraph.

According to official sources, the UK portfolio—estimated to be worth around £170 million—includes more than 300 properties. The investigation is part of a broader inquiry into real estate holdings reportedly acquired by associates and relatives of former prime minister Sheikh Hasina, says the Telegraph.

Hasina's niece, Tulip Siddiq, a former UK Treasury minister, is also facing legal proceedings in Bangladesh. The case relates to allegations that she was unlawfully allocated a piece of land during her aunt's tenure as prime minister. Siddiq has denied the allegations.

The corruption trial against Siddiq began earlier this week. She resigned from her ministerial post in the UK earlier this year, following increased public and political scrutiny surrounding the investigation in Bangladesh.

Meanwhile, the collapse of Chowdhury's businesses occurred after his assets were hit with a freezing order by the National Crime Agency (NCA).

This included a luxury £11m property in St John's Wood, north London, and a block of flats in Fitzrovia, central London, says the Telegraph.

The NCA took action against Chowdhury following requests from the current government in Dhaka.

He has repeatedly denied wrongdoing and claimed that he is the victim of a politically motivated witch hunt. He has repeatedly said that he used legitimate funds to buy his overseas properties.

Administrators at Grant Thornton have now been tasked with selling a large chunk of Chowdhury's assets, which largely consist of rental housing blocks in London and the South East.

Money generated from the sales would be used to repay creditors, which include Singaporean lender DBS and British Arab Commercial Bank.

Filings on Companies House also claim that Bangladeshi lender United Commercial Bank is also seeking to recoup $350m (£260m) from Chowdhury.

It comes amid a complex corruption scandal in Bangladesh, with officials concerned over the vast UK property portfolios amassed by members of Sheikh Hasina's government.

As a former minister in Bangladesh, Chowdhury has said previously that Sheikh Hasina treated him "like her son".

Siddiq, the UK's former anti-corruption minister resigned from her post in January amid claims she benefited from properties linked with the Awami League, her aunt's party.

Bangladesh's anti-corruption commission has been investigating several members of Sheikh Hasina's family, including Siddiq, over accusations of corruption.

Siddiq has denied any wrongdoing and called the allegations "completely absurd".

She told The Guardian that she does not plan to attend the trial in Bangladesh, saying: "I still don't know what the charges are against me.

"I feel a bit like I'm trapped in this Kafkaesque nightmare where I've been put on trial and I genuinely haven't found out what the allegations are and what the trial is about."

Siddiq is one of 27 people formally indicted last week by two Bangladeshi courts, including her aunt, who remains in exile in India.