HC issues 'standover' on writ against Radiant Pharma acquisition of Tk230cr Novartis Bangladesh shares

The High Court has issued a "standover" on a writ seeking prevention of the transfer of Tk230 crore worth of shares of Novartis Bangladesh Ltd to Radiant Pharmaceuticals.

Today, an HC division bench of Justice AKM Asaduzzaman and Justice Syed Enayet Hossain, while hearing the petition, issued the "standover" after the Anti-Corruption Commission (ACC) informed the court that the allegation of money laundering through the transfer of the shares between the two companies is currently under investigation.     

Lawyer of the writ petitioner, Barrister Noor Us Sadik Chowdhury confirmed the matter to the media. 

Earlier, on Monday, Supreme Court lawyer Advocate Iktandar Hossain Hawlader filed the writ. Lawyers Mohammad Ali and Barrister Noor Us Sadik Chowdhury represented him in court. 

Ten people, including the secretaries to the Ministry of Finance and Ministry of Industries and Bangladesh Bank governor, have been made respondents to the writ.

Alleging money laundering through the acquisition of 60% or 9,75,036 Novartis' shares by Radiant Pharmaceuticals for Tk230 crore, the writ sought court directives to investigate it, and also asked for a stay on the share transfer.

During the hearing today, the ACC's lawyer informed the court that they will submit the investigation report within a month.

Petitioner's lawyer Howlader told reporters that the court has adjourned the hearing following the assurance of the ACC lawyer to investigate the transfer of shares of Novartis Bangladesh and Radiant Pharmaceuticals within a month.

Earlier, on 8 January, a legal notice was served on relevant people, including Bangladesh Bank Governor Ahsan H Mansur, to prevent the share transfer.

The notice says the shares of Novartis serve the interest of Salman F Rahman, an adviser to the former Sheikh Hasina government.  

It further states that previously, the acquisition process of the shares was supposed to be done under the leadership of Salman F Rahman, who is also the chairman of Beximco Pharmaceutical Ltd.

But considering the changed circumstances following 5 August [ouster of the Hasina government], the process is ongoing through Radiant Pharmaceuticals Ltd, a relatively lesser-known company catering to the interests of Sheikh Hasina and her family.

"In the absence of Salman F Rahman, Radiant Pharmaceuticals Chairman Nasser Shahriar Zahedi Mahul is currently looking after matters related to Sheikh Hasina and her family's business interests," it adds.

The notice also claims that in fixing the share price, market rates were ignored, and an additional selling price was determined based on a secret agreement. "As such, paying the additional price to non-resident shareholders will result in a huge amount of foreign currency exiting Bangladesh, which is a crime under the Prevention of Money Laundering Act."

Radiant Pharmaceuticals Chairman Nasser Shahriar Zahedi Mahul, who is also the vice president of Jhenaidah district Awami League, won the 2024 parliamentary polls from Jhenaidah-2 as a dummy candidate from the Awami League.