Ex-Islami Bank chairman Obayed Ullah sent to jail in Tk189 crore loan scam case

A Dhaka court has ordered former Islami Bank chairman Obayed Ullah Al Masud to be sent to jail in connection with a Tk189 crore loan scam.

Dhaka Metropolitan Senior Special Judge Md Sabbir Faiz issued the order today (19 November) following a hearing, the court's bench assistant Md Riaz Hossain confirmed The Business Standard.

Earlier in the afternoon, ACC Deputy Assistant Director Mohammad Shah Jalal, the investigation officer of the case, produced Obayed before the court and petitioned for his detention in jail. The judge approved the request.

No bail petition was filed on behalf of the accused. 

Obayed was arrested from his Dhanmondi residence earlier this morning.

The ACC filed the case on 28 September against 11 individuals, including former managing director of Islami Bank Syed Abdul Hamid, also a director of Nurjahan Group, and Obayed Ullah Al Masud. They are accused of misappropriating Tk189 crore by securing a loan from Agrani Bank's Achhadganj branch in Chattogram in violation of banking rules. 

According to the case statement, although the loan was sanctioned in the name of Messrs Mizan Traders for the import of chickpeas and wheat, the real beneficiary was Nurjahan Group and its subsidiary, Jasmir Vegetable Oil Limited. 

It said the loan was approved and withdrawn fraudulently using the company officer Mizanur Rahman. The account at the branch was opened under a fictitious company linked to Nurjahan Group, and later managed by Zahir Ahmed, managing director of Jasmir Vegetable Oil.

The accused allegedly embezzled Tk51 crore, now stands at Tk189 crore with interest, by securing a large loan for the newly formed entity and then failing to comply with the loan's terms and conditions.

Obayed Ullah Al Masud resigned as chairman of Islami Bank on 16 July 2025. He previously served as managing director of Rupali Bank and held senior positions at several banks, including Agrani Bank.