Extortion thrives on political, police links
An entrenched extortion syndicate operating around Gulistan’s footpaths is imposing a heavy financial burden on thousands of hawkers and adding to the cost of doing business in one of Dhaka’s busiest commercial zones, with illegal collections estimated at Tk 20-25 lakh a day.
The sprawling illegal market, comprising thousands of hawkers and floating vendors, has survived successive political changes and administrative drives, with the extortion system largely intact.
Shopkeepers who fail to pay face allegations of harassment, vandalism, beatings and eviction from their stalls.
Investigations and accounts from hawkers, local traders, police and political activists suggest that the network operates through field-level collectors known as “linemen”, who collect money from shops twice a day. Hawker organisations estimate that 10,000-12,000 floating shops operate across 45 footpaths in the area, while field estimates put the number of regular hawkers at more than 5,000.
Each hawker reportedly pays a one-off “salami” of around Tk 20,000 to set up a stall, followed by daily extortion ranging from Tk 50 to Tk 1,000 depending on the size and location of the business.
Based on an average daily collection of about Tk 500 from roughly 5,000 hawkers, the Gulistan zone generates around Tk 21.25 lakh in illegal payments every day, Tk 1.49 crore a week and approximately Tk 6.41 crore a month. Other estimates put the daily collection at Tk 20-25 lakh, or Tk 6-7.5 crore a month.
The money goes to the syndicate rather than the public treasury, while the cost of the illegal levies is ultimately borne by hawkers and, potentially, consumers through higher prices for clothing, shoes, electronics, fruit and food sold on the footpaths.
A broader BRAC Institute of Governance and Development study estimated that around 2.5 lakh hawkers operating on approximately 430km of footpaths in Dhaka’s two city corporations generated Tk 1,825 crore in annual extortion. The amount was almost equivalent to the combined budgets of the two city corporations and had doubled over a decade.
Political structure survives power shift
The extortion network appears to have survived the change of power, with allegations that local leaders and activists of BNP-backed Jatiyatabadi Sramik Dal, Jubo Dal and Swechchhasebak Dal have taken over parts of the previous structure.
Names cited in connection with collections include Paltan Thana Sramik Dal leaders Abu Taher, Rasel Khan and Sumon, along with Mihir, Jasim Uddin and Jubo Dal leader Imam Hossain Imon Chowdhury.
A separate group reportedly operates around Fulbaria, Sundarbans Square Market, Kaptan Bazaar and Baitul Mukarram. Several individuals and political figures, as well as the Dhaka Trade Center Shop Owners Association, have been accused of providing protection to extortionists.
Although the political identities of some collectors have changed, the investigation alleges that the underlying system involving sections of the police, city corporation and political networks remains largely intact.
Police links alleged
Hawkers have specifically alleged that Sergeant Ahad Police Box In-Charge SI Biman Tarfder plays a key role in controlling the Gulistan footpath network and appointing linemen.
They said those who refuse to pay risk having their stalls overturned, goods thrown onto the road and being taken to the police box.
A hawker identified as Babul alias Sardar Babul admitted collecting money, saying he did so on behalf of police because otherwise he would be forced to leave the area. He said the money was subsequently shared among Paltan Police Station, Sergeant Ahad Police Box, patrol police and local political leaders.
Asked about the allegations, SI Biman said police could clear the footpaths overnight but claimed that the matter involved the police station’s officer-in-charge, the zone assistant commissioner and the deputy commissioner. He also said he did not keep the money alone and that others took shares.
Paltan Police Station OC Arifur Alam said he was new to the post and unaware of the alleged extortion, adding that action would be taken if such activity was found. Motijheel Zone DC Md Harun-or-Rashid denied taking money from the footpaths and said action would be taken if complaints were received against SI Biman.
Additional Police Commissioner Osman Gani has said action would be taken on the basis of specific information, while political leaders have sought to distance themselves from the activities of their workers.
Illegal power trade adds to cost
The extortion network is accompanied by other alleged illegal businesses. More than 200 footpath shops are reportedly receiving electricity through unauthorised connections, with hawkers charged Tk 50 a day despite an actual cost of Tk 20-25.
Shahbagh Ward No. 20 BNP convener Noor Nabi has reportedly admitted operating the connections illegally and alleged that monthly payments are made to electricity officials and police.
The city corporation has also confirmed that fake receipts were used to collect illegal lease tolls from goods-carrying vehicles and shops around Sundarbans Square Market.
Party office signboards placed at several locations, including near Somobay Twin Tower, petrol pumps and Golap Shah Mazar, are alleged to facilitate the collection and distribution of extortion money after nightfall.
Urban planners say the repeated return of hawkers after eviction drives reflects the absence of a coordinated hawker policy and the influence of linemen. Once eviction teams leave, they say, collectors bring the hawkers back because the daily illegal revenue depends on keeping the footpath businesses running.
The persistence of the network has effectively created a parallel economy around public spaces, where hawkers pay substantial sums simply to continue trading, while money generated from footpaths and public infrastructure bypasses the public exchequer and flows into private networks.
