BFIU report links former President Shahabuddin to Islami bank fraud case

Former President Mohammed Shahabuddin and his company, JMC Builders, were involved in an alleged 80,000 crore taka loan and share fraud involving Islami Bank Bangladesh PLC, according to a report submitted by the Bangladesh Financial Intelligence Unit (BFIU) to the High Court.

The agency filed its report on October 29, 2025, following a writ petition filed by Islami Bank.

The High Court is scheduled to hear the BFIU report and the pending rule on Wednesday before a bench comprising Justice Mujibur Rahman Miah and Justice Rezaul Karim.

Daily Waadaa received a copy of the report submitted by BFIU.

On March 11, 2025, a High Court bench comprising Justice Ashraful Kamal and Justice Waliul Islam issued three directives and a rule in connection with the case.

The court ordered that members of Islami Bank's board of directors who served before the board was dissolved after August 5 and were allegedly involved in loan fraud could not leave the country without the court's permission. It also ordered the freezing of their bank accounts and barred JMC Builders from transferring any of its shares.

At the same time, the court directed the BFIU to investigate the matter and submit a report.

Barrister Md. Abdul Qayyum represented Islami Bank in the case, while Barrister Shamim Khaled Ahmed appeared on behalf of Bangladesh Bank. Senior lawyer Mohammad Shishir Manir represented the Islamic Economics Research Bureau.

Speaking to this correspondent, Shishir Manir said that JMC Builders transferred a total of 81.92 percent of Islami Bank's shares through 24 companies. He claimed that Shahabuddin was involved in the alleged share fraud from 2017 until his appointment as president in 2023, serving during that period as JMC Builders' representative director on Islami Bank's board and approving the disputed share transfers.

He said the writ petition seeks the return of shares allegedly seized by the S. Alam Group to their original sponsor shareholders or rightful owners. It also calls for the prosecution of all individuals responsible for the alleged loan and share fraud, regardless of their identity.

He further alleged that while a single entity is legally permitted to hold a maximum of 10 percent of a bank's shares, and S. Alam Group and its affiliated companies fraudulently acquired 81.92 percent of Islami Bank's shares and subsequently obtained loans totaling 225,000 crore taka.