Ex-President Shahabuddin named in Tk 251cr Islami Bank share fraud case

Former president Mohammed Shahabuddin has been named among 20 accused in a case over alleged irregularities in the acquisition of shares worth Tk 251 crore in Islami Bank Bangladesh PLC, with a Dhaka court setting January 20 for submission of the investigation report after the Anti-Corruption Commission (ACC) failed to file it on  Tuesday.

Dhaka Metropolitan Senior Special Judge Shahjahan Kabir fixed the new date on October 27. The ACC is investigating allegations that a group of individuals and companies acquired a substantial stake in the bank through allegedly coordinated transactions involving questionable financial arrangements.

The case has drawn particular attention because Shahabuddin, who previously served as the country's president, is identified in the complaint as an Islami Bank director. However, the allegations against him have yet to be established through investigation or trial.


The complaint names 20 individuals in total, including several Islami Bank directors, business executives and other persons allegedly connected with the share acquisition.

The allegations against Shahabuddin form part of a broader investigation into how a large volume of the bank's shares was acquired and whether the transactions involved collusion, abuse of power or financial irregularities.

His inclusion in the case does not, by itself, establish criminal liability. The allegations will have to be assessed through the investigation and subsequent judicial proceedings.


According to the complaint, Brilliant Business Company had an authorised capital of Tk 50 crore but a paid-up capital of only Tk 8 lakh.

The complainant questioned how a company with such a small paid-up capital could acquire shares worth Tk 251 crore, arguing that the transaction raised serious questions about its financial capacity and the source of the funds.

The complaint alleges that the acquisition was carried out through a planned arrangement involving multiple parties. Investigators have been asked to examine the transactions, the source of the money and the circumstances under which the shares changed hands.


According to the complaint, 24 shareholder companies collectively acquired 81.92 per cent of the bank's shares, with most of those companies allegedly linked to the S Alam Group.

The complaint states that an examination of the share-transfer records showed that the dates of sale and purchase coincided, suggesting that the transactions may have been arranged in advance.

It further alleges that the S Alam Group, its senior officials, the associated companies and directors appointed through them acted collectively to establish control over the bank.

The allegations include abuse of power, conflicts of interest, questionable investment arrangements and breach of trust involving public money.

The ACC investigation is expected to examine the ownership structure of the companies concerned, the financial capacity of the share purchasers, the source of funds and the roles allegedly played by the individuals named in the case.


After recording the complainant's statement and taking cognisance of the complaint, the court directed the ACC to investigate the allegations and submit a report.

The investigation report was scheduled for submission on October 27 this year. However, as the commission failed to complete the process within the stipulated time, the court fixed January 20 for the next submission date.

The court also imposed a travel ban on the other accused following the filing of the case, while Shahabuddin was excluded from that order.


For Shahabuddin, the central question is whether investigators can establish evidence supporting the specific allegations made against him in his capacity as a bank director.

The investigation will also need to establish the source of the funds used for the share acquisition, the extent of coordination among the accused and whether any unlawful conduct occurred.

As the investigation remains pending, no finding of guilt has been established against Shahabuddin or the other accused in this case.