Foodpanda MD says arrest warrants stem from commercial dispute, calls cases ‘retaliatory’

A Dhaka court has issued arrest warrants against Foodpanda Bangladesh co-founder and Managing Director Syeda Ambareen Reza and four other senior officials in cases alleging fraud, embezzlement, forgery and intimidation.

Additional Chief Metropolitan Magistrate Jashita Islam issued the warrants on Wednesday after accepting investigation reports submitted by Gulshan police in two of four cases filed by businessman Shihab Mahmud Bashir.

The other accused are Foodpanda co-founder and director Zubair Siddiky, Pandamart director Mohammad Tabrej Khan, Head of Category Delara Farooq and Senior Manager Mohammad Sajadul Haque.

Bashir filed four cases on July 3 last year, accusing the officials of embezzling nearly 6 crore taka and alleging fraud, forgery and intimidation. The court subsequently asked Gulshan police to investigate.

According to the complaints, Bashir imported household and kitchen accessories, mobile accessories and other products through IPLE Electronics and supplied them to Pandamart, a Foodpanda affiliate.

He alleged that products worth about 2.5 crore taka were supplied between June 2022 and September 2024, of which about 1.5 crore taka was paid, leaving nearly 1 crore taka outstanding.

The complaints also allege that fake return challans were prepared to show supplied products as damaged and that around 10 lakh taka was deducted for VAT, tax and advertising costs. Bashir further alleged that his representative was threatened when he sought payment. The allegations remain before the court.

Ambareen, however, said the cases arose from a commercial dispute with a supplier and accused the complainant of using criminal proceedings against Foodpanda's senior management in retaliation.

Writing on her verified Facebook page, Ambareen said all five officials had already secured bail from the High Court.

"While court warrants are a routine procedural step in such cases, we fully respect Bangladesh's judicial process, and all concerned people have already been granted bail by the Honourable High Court of Bangladesh," she wrote.

The anticipatory bail has also been confirmed by Foodpanda's parent company Delivery Hero Stores and independently reported by local media.

Ambareen said IPLE was one of several suppliers to Delivery Hero Stores, which operates Pandamart, but that the company had stopped doing business with the supplier after problems emerged.

"IPLE is one of many of the suppliers to DH Stores (Pandamart). We stopped doing business with him due to various issues and he owes Delivery Hero Stores (Bangladesh) money," she wrote.

"There's a case against him in NI act for dishonoured cheques issued by him."

Ambareen said the four cases followed that dispute.

"In retaliation, he initiated 4 cases against senior leadership abusing the criminal justice system of Bangladesh," she wrote.

"These retaliatory tactics are a clear attempt to deflect his own financial liability by harassing our leadership and tarnishing our reputation."

Delivery Hero Stores has made the same argument, saying the criminal cases stem from an ongoing dispute involving dishonoured cheques and money it says Bashir owes the company.

Ambareen described the cases as an attempt to turn a contractual dispute into a criminal matter.

"Turning a commercial dispute or civil court matter into criminal charges is a desperate play to flip the narrative," she wrote.

She also disputed the suggestion that police investigations into all four cases supported the complainant.

"In fact, the police station investigated all four cases, and two reports explicitly found no criminal elements against our employees, confirming instead that money is owed to DH Stores by the complainant," Ambareen wrote.

Delivery Hero Stores has separately said two of the four police reports found no criminal elements against its employees and concluded that the complainant owed money to the company.

The warrants issued Wednesday relate to two cases in which police submitted investigation reports that the court accepted. Gulshan police officers Md Mashiur Rahman and Md Sakhawat Hossain submitted the two reports.

Ambareen said the use of criminal proceedings in commercial disputes could have broader consequences for Bangladesh's investment climate.

"The frivolous nature of the complaint and the malafide intent of the complainant to convert a routine commercial dispute into a criminal case will create uncertainty for international investors, undermine confidence in Bangladesh's business environment, and potentially discourage future FDI in the country," she wrote.

She said senior executives of other multinational companies had faced similar legal problems in Bangladesh over the past 18 months, naming Telenor, Nestlé and Unilever.

Foodpanda, owned by Germany-based Delivery Hero, has faced regulatory proceedings in other Asian markets, although those cases involved different issues and are not directly comparable with the Bangladesh dispute.

Singapore's competition regulator warned Foodpanda in 2024 over an advertisement promoting "Unlimited Free Delivery on All Restaurants" under its Pandapro subscription.

The regulator found that more than 40% of relevant transactions still required customers to pay a residual delivery fee. Foodpanda agreed to refund subscription fees to affected customers and clarify the offer.

Taiwan's Fair Trade Commission fined Foodpanda Taiwan NT$2 million in 2021 after finding restrictions it imposed on cooperating restaurants could restrain competition in violation of the Fair Trade Act.

Ambareen said Foodpanda remained focused on its operations in Bangladesh.

"To our incredible partners, riders, customers, and well-wishers, thank you for your unwavering trust and support," she wrote. "We stay 100% focused on serving you, supporting local businesses, and building a stronger Bangladesh together."

In a personal note, Ambareen said the legal dispute had taught her "a lot" and that she would continue fighting the cases.

"This case and dealing with it has taught me a lot and inshAAllah we'll continue to fight and win. Keep us in your prayers."

She ended with an appeal to friends and businesspeople.

"Please don't give up on Bangladesh," Ambareen wrote. "We need to keep pushing for the systems to change. So, keep pushing!"

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