Karnaphuli Multi-purpose Co-operative Society: ‘Owner swindled over Tk 100cr’

Jashim Uddin. Photo: Collected

In 2003, Jashim Uddin, formerly a representative of an insurance company, established the Karnaphuli Multi-purpose Co-operative Society and started collecting money from customers as DPS and FDR, promising to return high interest like banks.

Over the years, he collected over Tk 100 crore and then went into hiding, after customers started demanding their money back recently.

Mozammel Haque, commanding officer of Rab-4, said this after arresting 10 staffers of the MLM company during a raid at its office in Mirpur yesterday.

The raid was carried out after several companies complained against them to Rab, said Mozammel. 

Karnaphuli Multi-purpose has about 25,000-30,000 customers, and the amount of their investments is over Tk 100 crore, he told reporters at a press conference at Rab media centre.

Jashim used to transfer the money to his personal accounts, soon after depositing the customers' money at the company's bank accounts.

He invested the money in flats, plots and houses, said the official.

The arrestees are Shakil Ahmed, managing director of the company; Chan Mia; Ak Azad; Md Rezaul; Tajul Islam; Shahabuddin Khan; Abdus Sattar; Masum Billa; Titu Mia and Atikur Rahman.

The Rab official said mostly low-income individuals including day labourers, garment factory workers, rickshaw pullers, and vegetable vendors are victims of the company.

Whenever customers wanted their money back, the company staffers used to issue cheques that bounced in most cases.

They used to threaten, and sometimes physically assault customers when the latter went to their office, asking to return their money.

Jashim placed his family members, including father-in-law Motaleb Sarker, wife Lucky Akter, and sister-in-law Shahela Nazneen in top positions of the company.

Apart from Karnaphuli Multi-purpose Co-operative Society, Jashim claimed he established at least seven other institutions, namely Modern Diagnostic Centre, Jashim International Overseas Ltd, Jashim Tours and Travels, Jashim Welfare Foundation, Karnaphuli Real Estate Ltd, Jasim Students Consultancy Firm and Jashim Knit Composite Ltd.

However, Rab officials found them to be name-only institutions.

Rab is still trying to arrest Jashim.