Badal shown IFIC door

Bangladesh Bank has removed Mohammad Lutfar Rahman Badal from the board of directors of IFIC Bank, citing his negligence in duty and alleged funding of subversive activities.

Banking Regulations and Policy Department of the central bank issued a letter in this regard yesterday.

Badal was also chairman of the Executive Committee and Risk Management Committee of IFIC Bank.

“I have heard about the Bangladesh Bank letter, but I am yet to get a copy of it,” IFIC Bank Chairman Salman F Rahman told The Daily Star over the phone yesterday.

Badal is now abroad, said Salman, also private sector affairs adviser to Awami League President Sheikh Hasina.

The BB letter said Badal didn't attend any of the bank's 18 board meetings between December last year and September this year, which was detrimental to the interest of the bank's depositors and the board.

Badal was responsible for creating anarchy in and around Joydevpur of Gazipur, said the central bank.

He also funded subversive activities, it said, referring to a primary police probe against him.

A case was filed against him with Joydevpur Police Station, it added.

The Daily Star has obtained a copy of the BB letter. “He has been fired from the IFIC Bank's board as per section 46 of the 1991 Banking Companies Act,” a senior BB official told this correspondent.

Now, Badal cannot be a director of any other bank for three years.

He came under scanner for his alleged involvement in the 2010 stockmarket scams.

In early 2011, the government formed a committee led by former BB deputy governor Khandker Ibrahim Khaled to probe the scams.

According to the report, 12 people, including Badal and his wife Shoma Alam Rahman, and two organisations swindled the share market out of Tk 460 crore.

According to IFIC Bank's website, Badal was tasked with building special relationships between the government and the private sector, investing in new and highly potential industrial sectors, and introducing new products and services to local industries.

People close to Badal said he rose to prominence from humble beginnings, and has close ties with the BNP.

He started his business by setting up a securities company in the mid-90s, and went from strength to strength.

On many occasions, Badal was included in official delegations led by former prime minister Khaleda Zia during foreign investment promotion tours, says the website.

His industrial investments include ceramics production, health care consumer products, and a television broadcasting company (Ntv). Other interests include major share holdings in different financial institutions, it reads.

Badal is also known as a sports organiser, particularly in cricket. And he caused controversies in sports too.

Badal, who formed cricket club Legends of Rupganj, came under the spotlight in December last year for his outburst at Bangladesh Cricket Control Board President Nazmul Hassan and two other directors.

Later, he was banned from all cricketing activities for life.