Record 876 forcibly taken firms returned to previous owners after Hasina’s fall

Following the fall of the Sheikh Hasina government on 5 August, a record 876 companies, allegedly seized by force over the past 15 years, have been returned to their former owners, according to the Registrar of Joint Stock Companies and Firms (RJSC).

Between 20 August and 10 October, the RJSC received 3,753 applications from individuals seeking to reclaim control of companies. Most of these businesses are small to medium-sized, with a combined investment value of approximately Tk1.5 lakh crore, officials said.

Mizanur Rahman, registrar (Additional Secretary) at the RJSC, told The Business Standard that the surge in applications over the past month is unprecedented. 

"Since the inception of the RJSC, we have never seen such a volume of complaints in such a short span of time," Rahman said. 

"We are acting in accordance with the law, working to provide appropriate remedies to companies that were unjustly taken over," said the registrar of RJSC that oversees company registration and regulation under the commerce ministry.

Commerce Adviser Dr Salehuddin Ahmed told TBS many illegal incidents have occurred during the last 15 years of rule, such as the takeover of companies, including foreign ones.

"The government will play a role in remedying these issues through a transparent process, as the private sector is the main driving force of the economy," he added.

Another RJSC official, speaking on the condition of anonymity, said the applicants claim their businesses, leadership positions—such as chairman or managing director—or company shares were forcibly taken between 2009 and July 2024.

"Following investigations into the applications, the ownership, management, and shares of 876 companies have already been transferred to their previous owners," said the official involved in the investigation. 

He said the remaining cases are still under review. Of these, 300 applications could not be resolved by the RJSC due to pending legal proceedings. The RJSC will issue final decisions on these companies once the High Court and lower courts have disposed of the cases, he noted.

One such company is The Adventure Polymer and Packaging Ltd, located in the Kaliakair area of Gazipur. Established in 2002, the company experienced robust production and business operations.

It specialises in manufacturing high-quality wrappers, boxes, cartons, labels, and synthetic polymers for packaging a variety of products, including medicines and ready-made garments. In addition to catering to the domestic market, its products are also exported.

Founded by three friends, the company reached an annual turnover of Tk150 crore by 2010.

Asifur Rahman, who had served as the company's chairman, told TBS that in November 2010, a man named Omar Farooq, introducing himself as a local leader of the Swechchhasebak League – the volunteer wing of the Awami League – became a director of the company through the influence of a minister.

By March 2011, he alleged, Farooq had fabricated a resolution to become the managing director. Within three months, he seized control of the company's factory and offices at gunpoint, forcibly removing all previous directors and shareholders.

Asifur stated, "In 2011, we were attacked multiple times and expelled from the company. Omar Farooq altered the entire ownership structure through a false resolution, taking everything for himself. We were left completely helpless, and our complaints to the police and subsequent court cases yielded no results.

"Farooq filed six separate cases against us for attempted murder, theft, and robbery, forcing us to flee the area. The police raided our houses repeatedly, causing significant distress."

Asifur explained that an influential minister supported Omar Farooq, stating, "Consequently, we received no assistance from anyone and had to go into hiding."

After the change in power on 5 August, Asifur said Farooq went into hiding as well. "With the help of local people and the police, we managed to reclaim the company on 10 August. Subsequently, we applied to the RJSC to restore the ownership in our names and filed a case in the Gazipur court seeking Tk1,000 crore in compensation." 

An RJSC official concerned told TBS that when Asifur and his fellow shareholders applied for ownership restoration in mid-August, they were granted ownership following an investigation.

"The allegations of a forceful takeover were substantiated, and the two resolutions through which the company was taken over by the Swechchhasebak League leader were proven to be fraudulent upon investigation," he added.

However, Omar Farooq, currently in hiding, has denied the allegations of forcibly taking over the company. When contacted via WhatsApp, he told TBS, "We have become the owners of the company by following all legal procedures." He hung up the call without providing any further details.

Globe Edible Oil Ltd has a similarly grim story. Globe Pharmaceutical Group of Companies Ltd established the company with an investment of around Tk1,500 crore in 2014, but the factory could not begin production due to the influence of a Chattogram-based powerful business group.

It is alleged that in 2022, the group forcibly took the majority share of the company and subsequently took over Globe Edible Oil Ltd and renamed it as Globe Refined Sugar Industries.

According to officials at the RJSC, following the change in government on 5 August, Globe Pharma regained complete ownership of the company, which is located in Rupganj, Narayanganj. An official from Globe Edible Oil Ltd stated that the company has now begun operations with the goal of producing five types of edible oil.

Company law expert Shah Md Ahsanur Rahman told TBS that RJSC does various things, including registration of a company, liquidation, transfer of ownership, and approval of shareholders. Also, it performs the responsibility of the regulator in various corporate matters.

He said that for various changes in the ownership and management of a company, approval from the RJSC is required. This approval is the basis of company management. RJSC can take legal action on complaints about companies that have been illegally taken over. It is now working on that authority.

According to the RJSC, there were 633 applications for ownership changes among various companies from January to July this year.

Data from the RJSC indicates that a total of 1,723 companies changed ownership in 2023. In 2022, 2,382 companies changed ownership; in 2021, the number was 2,663; and in 2020, 2,077 companies changed hands.

The RJSC does not have information on how many companies have been illegally acquired over the past 15 years. Currently, there are approximately 288,000 registered companies in the country.