A Dhaka court has ordered the imprisonment of Obayed Ullah Al Masud, the former chairman of Islami Bank Bangladesh PLC and former managing director of both Rupali Bank PLC and Sonali Bank PLC, in connection with an alleged Tk 1.89 billion loan embezzlement scandal. The decision follows a corruption case lodged by the Anti-Corruption Commission (ACC), underscoring one of the most significant financial misconduct cases in Bangladesh’s recent banking history.
Mr Masud appeared before Metropolitan Sessions Judge Md Sabbir Faiz, where the ACC pressed for his immediate detention. Mohammad Shah Jalal, Deputy Assistant Director of the ACC and the lead investigator of the case, appealed to the court to keep Masud in custody until the conclusion of the ongoing investigation. After hearing submissions from both sides, the court ruled in favour of the ACC and ordered that the former banking executive be sent to prison.
Background of the Case
The case, filed by the ACC on 28 September, names 11 individuals, including senior bankers and business leaders, all accused of participating in a large-scale loan scam. Among the main accused are:
Obayed Ullah Al Masud – former chairman and top executive at multiple state and private banks
Syed Abdul Hamid – former managing director of Agrani Bank’s Chittagong branch
Directors of the Nurjahan Group
Eight additional associates
According to the ACC, the group embezzled nearly Tk 1.898 billion by fraudulently securing loans from Agrani Bank’s Asadganj branch in Chittagong, using forged documents and circumventing standard banking procedures. The loan amounts, initially taken under the pretext of legitimate business operations, were allegedly siphoned off through various channels, causing substantial financial losses to the bank.
Details of the Case
| Allegation | Individuals Involved | Amount (Tk) | Institution |
|---|---|---|---|
| Illegal loan acquisition and embezzlement | Obayed Ullah Al Masud, Syed Abdul Hamid, Directors of Nurjahan Group, 8 others | 1,89,80,00,000 | Agrani Bank, Chittagong (Asadganj Branch) |
Ongoing Investigation
The ACC has confirmed that the investigation is progressing, with efforts underway to trace the misappropriated funds and identify the full extent of the financial wrongdoing. The case has attracted considerable public attention, particularly due to the high-ranking positions previously held by the accused.
Officials close to the investigation indicate that more individuals and corporate entities may come under scrutiny as the inquiry unfolds. The scandal has once again raised concerns about internal controls, governance failures, and corruption vulnerabilities within Bangladesh’s banking sector.
A Message of Accountability
The court’s decision to incarcerate a former top banking official marks a strong message of accountability at a time when regulatory authorities are actively seeking to restore public confidence in the financial system. The ACC maintains that it is committed to ensuring that those responsible for the large-scale fraud are brought to justice and that mechanisms are put in place to prevent similar incidents in the future.