Tk1.09 lakh crore deposited to S Alam Group, family accounts in 6 banks, NBR finds

• Figures not final as more transaction details coming
• Banks are IBBL, EXIM, AIBL, FSIBL, National Bank, Commerce Bank
• Info collected covers a period of more than five years
• NBR sought info from 91 banks and NBFIs
• BFIU, CID are also investigating S Alam

The revenue authorities have found that Tk1.09 lakh crore were deposited in accounts across six banks held by various business entities and family members of Md Saiful Alam, chairman of S Alam Group.

These accounts currently hold a balance of Tk26,000 crore, according to sources at the National Board of Revenue (NBR). These figures are not final as some banks are still submitting transaction details, they said.

The banks involved are Islami Bank, EXIM Bank, Al-Arafah Islami Bank, First Security Islami Bank, National Bank, and Bangladesh Commerce Bank. Of these, five were previously under S Alam's control. 

However, following the fall of the Sheikh Hasina government on 5 August and the appointment of Ahsan H Mansur as the governor, these banks have undergone restructuring.

On 14 August, Income Tax Zone-15, under the NBR, requested 91 banks and non-banking financial institutions to provide account details of S Alam, his family members, and all related business entities.

About a month later, they uncovered significant transactions within these accounts.

Ahsan Habib, commissioner of Tax Zone-15, told TBS, "We have issued searches on the bank accounts of S Alam's family members and various business entities under the group. The process of collecting detailed information is ongoing." 

However, he declined to provide further details.

A senior official from Income Tax Zone-15, on the condition of anonymity,  told The Business Standard that they have unearthed deposits of Tk1,09,000 crore in these banks so far, including loans and sales.

"However, we are still determining how much of that amount consists of loans," the official added.

He further stated, "We also found that S Alam's family members and business entities currently hold a balance of about Tk26,000 crore in these accounts."

When asked about the timeframe for this information, the tax official said, "We typically request data for the past five years. However, in this case, information from earlier periods is also included." 

Previously, under the Income Tax Ordinance, tax authorities could only request bank transaction details for the previous five years. However, the new Income Tax Act, passed in 2023, has removed this time limit, allowing the tax department to request information from any period in the past.

Other probes against S Alam

In addition to the NBR, the Bangladesh Financial Intelligence Unit (BFIU), government intelligence agencies, and other entities are also investigating various irregularities involving the S Alam Group.

Recently, after the reconstitution of Islami Bank's board—previously controlled by S. Alam—Obayed Ullah Al Masud was appointed as its new chairman.

Following a meeting with the central bank governor on 5 September, Masud said S Alam Group has taken more than half of the total loans disbursed by the Islami Bank Bangladesh Limited. 

At the end of June, the bank's disbursed loans stood at more than Tk1.74 lakh crore.

Moreover, the Criminal Investigation Department (CID) of police has launched a preliminary investigation into allegations that S Alam Group's Chairman Saiful Alam Masud and his family laundered a massive Tk1.13 lakh crore abroad through deceptive tactics and informal money transfer channel — hundi.

CID officer Azad Rahman from its CID media wing told The Business Standard on 31 August that the Financial Crime Unit of the department is conducting the investigation.

There are allegations that the business group benefited from banks by securing thousands of crores of taka. 

A report titled "How S Alam Group took advantage of Islami Bank to take out Tk45,000cr loan" published by The Business Standard on August 15 revealed that the group secured thousands of crores in loans, including for a closed factory, non-existent companies, and even a tin shop, from the bank.