REHAB president removed over loan default

The commerce ministry has declared the post of Real Estate and Housing Association of Bangladesh (REHAB) President Ali Afzal vacant after a Bangladesh Bank report identified him as a loan defaulter for being a director of a defaulting company.

According to the order issued yesterday, Bangladesh Bank’s Credit Information Bureau (CIB) report showed that Ali was a director of a loan-defaulting company and was consequently identified as a defaulter himself.

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Under Section 23(1)(b) of the relevant law, an elected office-bearer’s position becomes vacant if they remain a loan defaulter for 180 days without repaying the outstanding loan, according to the provision cited in the matter.

The order, signed by Chowdhury Samia Yasmin, deputy secretary of the commerce ministry, was sent to REHAB’s senior vice-president, the Registrar of Joint Stock Companies and Firms, the FBCCI administrator and other officials concerned.

Ali, also the group managing director of Krishibid Group Bangladesh, was elected president from the Progressive Panel in the REHAB election held on April 18, 2024, and assumed office on April 22 that year. His removal comes amid a separate controversy within the country’s real estate trade body.

On July 26 this year, 10 members of REHAB’s board of directors submitted a written complaint to the commerce ministry against Ali, alleging financial irregularities and several other issues.

The complaint is currently under investigation, according to officials familiar with the matter.

The latest action, however, is based specifically on his loan-default status as reflected in Bangladesh Bank’s CIB report, rather than the allegations contained in the complaint.

The ministry’s letter does not disclose the amount of the outstanding loan or when the default occurred. It also does not provide details of Ali’s shareholding or directorship in the company.

The Daily Star tried to reach Ali through text messages and phone calls but could not reach him until the filing of this report.