Islami Bank changes lawyer in case against S. Alam
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Bangladesh Bank and Islami Bank have changed their lawyers in a writ petition seeking an investigation into 24 entities linked to the S. Alam Group. The central bank has already obtained a No Objection Certificate, from its former lawyer and appointed a new lawyer. Islami Bank has also sent a letter to its lawyer seeking an NOC.
Barrister Abdullah-Al-Mamun was representing Islami Bank in the case. On August 11, the bank authorities sent him a letter requesting an NOC. In the letter, the bank authorities said they would appoint another lawyer in the case and therefore needed an NOC. They also sought the concerned lawyer’s cooperation in this regard.
Earlier, Bangladesh Bank had changed its lawyer in the case. Barrister Shamim Khaled Ahmed had been handling the case on behalf of Bangladesh Bank for a long time. However, he was recently replaced and another lawyer was appointed to represent the central bank in the case.
Shamim Khaled said he has already provided the NOC. Bangladesh Bank has appointed a new lawyer, he said.
After the fall of the Hasina government, Islami Bank filed a writ petition with the High Court in 2025. The petition sought an investigation into how shareholders of 24 entities linked to the S. Alam Group allegedly became owners of 82.92 percent of the bank’s shares using loans or investment funds obtained from Islami Bank PLC.
After holding the initial hearing on the writ petition, the High Court issued an order in October last year. The Bangladesh Financial Intelligence Unit, was asked to submit an investigation report on the purchase of shares in the 24 entities.
After a lengthy investigation, the BFIU submitted a 42 page investigation report and an audit report to the court. The reports revealed various details regarding alleged bank share fraud, embezzlement of funds and the establishment of control over the bank by the S. Alam Group.
According to information related to the investigation, in 2017, with the direct support of the then Awami League government, various individuals and entities linked to the S. Alam Group took control of nearly 72 percent of Islami Bank’s shares by violating several provisions of the Bank Companies Act. One of the companies through which S. Alam’s entities took control of the shares at the time was JMC Builders. Ahsanul Alam, son of S. Alam, is the chairman of JMC Builders.
The investigation report said that former President Mohammed Shahabuddin was included on the bank’s board of directors as a representative of JMC Builders. He later also served as the bank’s vice chairman. He stepped down from the position before becoming president. According to the report, Mohammed Shahabuddin was a member of the bank’s board of directors from June 8, 2017, to February 20, 2023.
A senior lawyer representing Islami Bank in the writ petition told Agamir Somoy on condition of anonymity that while Shahabuddin was a member of the board of directors, loans worth thousands of crores of taka were approved in the names of various entities of the S. Alam Group.
The audit report said that although JMC Builders had paid up capital of only Tk 10 crore, it purchased shares worth a total of Tk 102 crore from Islami Bank. The company purchased 32,360,812 shares of Islami Bank through account number 0331 of brokerage house First Security Capital and Investment Limited.
Investigating the source of the funds used to purchase these shares, the BFIU found that the money initially came from the account of S. Alam Trading Company Private Limited. In other words, according to the investigation report, the funds used by JMC Builders to purchase the shares were provided through an entity linked to the S. Alam Group.
The writ petition is still pending before the High Court. However, when the case recently came up for hearing, a High Court judge expressed discomfort in hearing it. As a result, the case was sent to the office of the Chief Justice. It was later assigned to another High Court bench for hearing.
Lawyer Shamim Khaled said the case is scheduled to come up for hearing again next week.
