The Central Intelligence Cell (CIC) of the National Board of Revenue (NBR) has commenced an investigation into potential tax, VAT, and customs duty evasion by the country’s top five business tycoons and all their associated enterprises.
As part of the investigation, the CIC has requested information on the bank accounts of these individuals and their companies from various banks, financial institutions, the Securities and Exchange Commission, the Directorate of Savings, and other relevant authorities, said a press release issued by the NBR on Thursday (22 August).
"The revenue payment records of Obaidul Karim, chairman of Orion Group; Nazrul Islam Mazumder, chairman of Nasa Group; Muhammad Aziz Khan, chairman of Summit Group; Salman F Rahman, vice chairman of Beximco Group; and Ahmed Akbar Sobhan, chairman of Bashundhara Group, along with their companies, will be thoroughly examined. Should evidence of tax evasion be found, these individuals and their entities will face punitive actions under the Income Tax Act, 2023, and the Anti-Money Laundering Act, 2012, alongside efforts to recover any evaded revenue," it said.
The release further stated, "The CIC has compiled a list of potential tax evaders based on a review of various reports and specific confidential information. A special investigation into revenue evasion by these suspected individuals and companies has been initiated, and the investigation into the tax evasion by these five businessmen and their companies is a part of this broader probe."
On Wednesday (21 August), NBR Chairman Abdur Rahman Khan held a meeting with CIC officials. During the meeting, he directed them to gather all relevant information concerning the income tax, VAT, and customs duties of these five industrial groups over the past several years to investigate potential tax evasion.
Additionally, he instructed them to review the import-export activities of the companies owned by these groups. Following the fall of the Sheikh Hasina government on 5 August, the bank accounts of several former ministers and others have been seized or frozen, and their tax evasion records are being scrutinised.
Already, numerous complaints of various irregularities, corruption, and revenue evasion against Obaidul Karim of Orion Group, Nazrul Islam Mazumder of Nasa Group, Muhammad Aziz Khan of Summit Group, Salman F Rahman of Beximco Group, and Ahmed Akbar Sobhan of Bashundhara Group have been submitted to the NBR under both their names and aliases.
Investigators have taken these complaints into account and are conducting a thorough investigation.
The complaint against Obaidul Karim of Orion Group submitted to the NBR alleges that he received numerous illegal benefits during the previous government's tenure.
Orion Group claimed to have invested Tk100 crore in the construction of the Gulistan-Jatrabari (Mayor Mohammad Hanif) flyover, but the project's bank account shows only Tk156,390.
The remaining amount was allegedly spent on various items using forged documents.
Furthermore, it is claimed that the Orion Chairman laundered billions of taka by falsifying import-export documentation.
Nazrul Islam of Nasa Group, who also served as chairman of EXIM Bank, has been accused in an NBR complaint of laundering large sums of money under the guise of import-export activities by abusing his position of power.
He allegedly engaged in serious irregularities in lending practices, which are reflected in several reports from different banks.
Nazrul Islam also allegedly misused his influence to acquire vast tracts of land and became an overnight supporter of the Awami League.
Allegedly, he distributed loans exceeding the customer's (Nasa Group) credit limit almost every year and underreported exports relative to imports.
Large sums of money were transferred to various accounts at different banks through cheques, pay orders, or cash withdrawals, but the purpose and usage of these funds remain unknown.
Numerous allegations of banking sector irregularities, corruption, fraud, and money laundering against Nasa Group have surfaced.
According to the NBR, Summit Group chairman Muhammad Aziz Khan has allegedly laundered billions of taka by leveraging his political influence and availed himself of unlawful benefits, all while paying minimal taxes.
He reportedly used his influence to halt the review of his and his company's revenue-related files at the NBR. Summit Power Limited, an independent power producer (IPP), began operations in 1997.
By 2001, the production capacity of Summit’s three power plants was 33MW. Since the previous government assumed power, the company has been consistently signing power purchase agreements with BPDB, first through quick rental arrangements and later by establishing IPPs.
Over the past decade, Summit Power has dominated BPDB's power purchases from the private sector, often benefiting from irregular advantages, bank loans, and subsidies.
The company was also granted permission to conduct business in Singapore.
Complaints lodged with the NBR against Salman F Rahman, the former prime minister Sheikh Hasina’s advisor on private industry and investment and vice chairman of Beximco Group, include allegations of embezzlement and money laundering abroad.
Several media outlets have published reports on Salman F Rahman’s alleged laundering of billions of taka through fraudulent means and exploiting illegal influence, prompting the NBR to initiate an inquiry.
He has also been accused of misappropriating shareholders' funds by engaging in stock market fraud and deceit, as well as misusing approximately Tk36,000 crore in loans obtained from various government and private banks.
NBR has received complaints alleging that Bashundhara Group Chairman Ahmed Akbar Sobhan, alias Shah Alam, embezzled over 1 lakh crore taka and has been labeled a land grabber.
Shah Alam allegedly laundered the majority of the funds borrowed from several scheduled banks with minimal collateral to Dubai, Singapore, Cyprus, London, Malaysia, and other countries.
In the late 1980s, Shah Alam began buying and selling land in plot form in the Joar Sahara mouza area, with allegations that he forcibly took control of the land.
He is also accused of forcibly seizing land from 15-20 housing companies, including Pink City Housing Project, Bhaiya Group’s housing project, Mohammadiya Housing, Reliance Housing, and Partex Housing. Numerous individuals have reportedly been rendered destitute after being defrauded by Shah Alam, who allegedly laundered billions of taka by falsifying documents related to import-export activities.
