Transcom Group, once regarded as a paragon of compliant business conglomerates in the country, is now entangled in a conflict among its second-generation heirs concerning the allocation of wealth following the demise of its founder Latifur Rahman.
Shahzreh Huq, the younger of the two surviving offspring of the esteemed businessman, has initiated legal action by filing three cases on Thursday. These cases accuse her mother Shahnaz Rahman, the current chairman of the group, and her elder sister Simeen Rahman, the group’s current CEO, of breaching trust, committing fraud, and forging documents to deprive her and her deceased brother Arshad Waliur Rahman of their purported rightful share of the family's wealth, estimated at Tk10,000 crore.
Promptly, the police arrested five high-ranking officials of the group accused of colluding with Simeen Rahman and Shahnaz Rahman. Despite the Police Bureau of Investigation's plea for remand, a Dhaka Metropolitan Court granted bail to the arrested Transcom employees on Friday.
When contacted several current and former Transcom employees, as well as acquaintances of Latifur Rahman's family disclosed that Simeen Rahman, with her dedication and business acumen, gained her father's trust and was groomed to lead the conglomerate before his passing in 2020. Conversely, Shahzreh Huq and her late brother, Arshad Waliur Rahman, displayed less interest in the family businesses, focusing more on personal endeavors.
According to insiders, Simeen Rahman, supported by her mother, acquired an additional 18% stake in Transcom Limited, leading Shahzreh Huq to claim that this allocation was unfair and not agreed upon by all heirs. Additionally, Shahzreh accused her mother of misappropriating Tk100 crore from Latifur Rahman's estate, alleging that a significant portion was used to purchase Transcom shares, benefiting Simeen Rahman.
Legal representatives for Transcom argued in court that Shahzreh Huq had previously acknowledged the inheritance she received and had complied with tax obligations accordingly, contradicting her current claims of fraudulence.
The conflict within the Transcom family is not recent but has been brewing for years, exacerbated by familial tragedy and differences in business involvement. Efforts to resolve the dispute, especially after the death of Arshad Waliur Rahman, have been unsuccessful, leading to Shahzreh Huq's pursuit of her perceived rightful inheritance.
This legal dispute underscores deep-seated familial divisions and highlights the complexities of succession and inheritance within the group. With key figures embroiled in legal proceedings, the long-term stability of the group remains uncertain.
Transcom Group, established by Latifur Rahman in 1972, has evolved into a prominent player in various sectors, partnering with international brands such as Philips, Pepsi, and Nestle. However, despite its historical significance, the group faces challenges in maintaining competitiveness amidst a rapidly evolving economic landscape in Bangladesh.
