Islami Bank files Tk500cr fraud complaint
Islami Bank Bangladesh PLC has asked Bangladesh’s anti-graft authorities to investigate alleged loan fraud involving around Tk500 crore, naming former president Mohammed Shahabuddin Chuppu, S Alam and 36 other individuals and entities in a written complaint.
The complaint alleges that the accused colluded to secure and divert the bank’s funds through forged documents and irregular loan approvals, with some of the money allegedly being laundered abroad.
The bank has claimed that the alleged scheme contributed to its financial distress.
Mohammad Yasin Ali, first assistant vice-president of Islami Bank’s Foreign Exchange Corporate Branch, recently submitted the complaint to the Anti-Corruption Commission (ACC).
According to the complaint, Suprabh Composite Knit Ltd, originally a distressed small industrial enterprise with an investment limit of Tk100 crore, saw its borrowing limit increased first to Tk200 crore and eventually to Tk500 crore with the alleged assistance and influence of the accused.
The complaint alleges that the loans were sanctioned without sufficient collateral or guarantees and without proper verification or assessment of the borrower’s financial position.
Loan proposals were sent from the branch to the bank’s head office at different times between 27 July 2017 and 5 December 2023, according to the complaint.
The loans were subsequently approved at executive board meetings held between 20 June 2017 and 21 November 2023.
Despite repeated reminders and final demand notices issued between 2019 and 2025, the complaint said the loans remained unpaid.
Suprabh Composite Knit Ltd and its managing director Mohammad Yunus, also known as Alhaj Md Yunus Badal, have been identified as the principal accused.
Galaxy Sweaters and Yarn Dyeing Ltd, along with ABM Shamsul Hasan, Saleha Shahin, Umme Salma Sharmin and several directors of the company, are also named in the complaint.
Mohammad Saiful Alam, chairman and managing director of S Alam Group, commonly known as S Alam, has been named as an alleged beneficiary of the loan facility.
The complaint also names several former Islami Bank directors, former executive committee members, former managing directors and chief executive officers, former deputy managing directors and other bank officials.
The bank has sought legal action against the accused under sections 406, 409, 420, 467, 468, 471, 477A, 34 and 109 of the Penal Code; sections 5(1) and 5(2) of the Prevention of Corruption Act, 1947; and section 4 of the Money Laundering Prevention Act, 2012.
Yasin Ali told the media that Islami Bank had filed several cases concerning irregularities in loans associated with S Alam.
“Based on a court directive, we provided the ACC with information on the loan irregularities to supply information related to a case,” he said.
ACC Secretary Md Saidur Rahman Khan, however, said he had not received the complaint since taking charge.
He said the commission was currently unable to act on such complaints until it was formally constituted.
“These allegations will be examined after the commission is constituted,” he said.
The complaint adds to scrutiny of lending practices at Islami Bank and alleged financial irregularities involving borrowers linked to the S Alam Group.
The allegations remain subject to investigation and have not been established in court.
