Government plot occupied by Hotel Lakeshore

Allegations have surfaced against the Hotel Lakeshore authorities for allegedly acquiring Plot No. 43 on Road No. 41 in the capital’s Gulshan-2 area through fraudulent means.

During an investigation by The Daily Messenger, it was found that the approximately one-bigha property, valued at around Tk 100 crore, was purportedly obtained in an auction at an unusually low price of Tk 1 crore.

The auction process, however, got completed in just 7 days, allegedly bypassing established legal procedures, including the swift approval of affidavits and documents.

Anti-Corruption Commission (ACC) Assistant Director Sahidur Rahman recently submitted a report recommending the complaint's closure due to lack of evidence during the investigation. However, the commission has opted for a re-investigation. The contested plot is situated opposite the Hotel Lakeshore in Gulshan-2.

According to the investigator's report, the plot was allotted in favour of an individual by Rajuk, documented as privately owned property. However, the plot is currently in a state of suspension, following an order from the Chamber Judge Court, with multiple pending cases related to the property. Additionally, the complaint does not fall under the category of ACC scheduled crimes.

The Director General (Special Investigation) of the ACC brought forth the issue during the commission meeting held on August 1.

In the meeting, it was deliberated that the plot implicated in the complaint is included in the ACC schedule, being under the ownership of Rajuk. The alleged fraudulent transfer of ownership necessitated a re-inquiry, and the commission reached a consensus on this matter.

Following this decision, on September 5, Assistant Director of ACC Sahidur Rahman corresponded with the Rajuk Chairman, requesting the pertinent documents related to the complaint for investigative purposes.

As per ACC sources, the letter addressed to the Rajuk Chairman specifically requested documents related to the CS (Cadastral Survey), RS (Record of Rights), and CT (City Tax) survey of the relevant plot. Additionally, information on whether the plot was allotted in the name of Habiba Sultana Zaidi on March 30, 1962, along with any other relevant documents, including the most recent ownership records, were sought to be submitted to the ACC by September 19.

Following the issuance of the letter, Rajuk has reportedly sent some related documents to the ACC, which are currently undergoing scrutiny.

According to ACC sources, Nurul Islam Moni acquired the approximately one bigha plot for one crore taka through a court order. Subsequently, the plot, valued at around Tk 100 crore, was transferred to the Lakeshore Hotel owners. Currently, the plot remains vacant.

The complaint lodged with the ACC alleges that during the BNP's tenure, Nurul Islam used his influence to secure the one bigha plot in an auction for a mere one crore taka. The auction purportedly bypassed established legal processes, with the proceedings, including affidavits and documents, being swiftly completed. The auction cancellation occurred in the Appellate Division following an appeal by the plot's owner, Reena Humayun. Despite this, the Lakeshore Hotel Authority is accused of unlawfully occupying the plot.

Allegedly, extensive manipulations were employed to favor the owners of Hotel Lakeshore during the auction process. The auction notice was purportedly published on November 23, 2018, in the relatively less known newspaper 'Dainik Dhakar Dak' with low circulation, possibly to keep the auction discreet. Despite these efforts, Reena Humayun and her close relatives managed to appear in court and submit bids for the auction.

During the auction, Humaira Khan bid Tk 66 crores, Kazi Tarek Shams, the owner of Hotel Lakeshore, bid Tk 11 crores 60 lakhs, the managing director of Dada Engineers Limited bid Tk 65 crores 51 lakhs, Reena Humayun herself bid Tk 50 crores, and Sariat Tasreen submitted a tender of Tk 30 crores. As Humaira Khan's bid was considered non-responsive, the Dada Engineering Company, being the highest bidder, should have been deemed responsive.

However, in an order dated January 16, 2019, the court dismissed all tenders citing insufficient value, deeming the proposed prices to be below the actual market value. The court then set the date for re-auction on February 28. Surprisingly, no further auction notices were circulated thereafter.

Allegedly, despite the absence of a final decree, a money issue case was filed. In this case, Nurul Islam acquired the plot on July 14, 2005, for a mere one crore taka through an illegal and fraudulent auction tender, allegedly under the influence of money. The acquisition process unfolded within seven days, wherein Nurul Islam Moni reportedly bought the plot through a single tender without the issuance of a proper auction notice. This was done in violation of the law, as there was no advance submission of the auction notice to the court 15 days prior, and the entire auction was allegedly conducted without adhering to any established rules.

The plot currently occupied by Hotel Lakeshore was originally allotted to Habiba Sultana Zaidi on March 30, 1962, by the then DIT. Following this, the plot deed was executed and officially registered on March 27, 1963. On February 15, 1975, Habiba Sultana Zaidi executed an affidavit before a First-Class Magistrate, declaring the gift of the plot to her sole daughter, Mumtaz Begum. The gift transaction was completed on April 21, 1978.

Mumtaz Begum, in turn, secured a loan of three lakh taka from Agrani Bank on July 19, 1977, for the construction of a house on the plot. She diligently repaid 2 lakh 16 thousand 792 taka in 20 installments. However, the remaining 13 installments and an outstanding interest amount of Tk 1 lakh 30 thousand remain unpaid.

On April 27, 1986, Mumtaz Begum appointed Reena Humayun's husband, Humayun, as the executor for the plot at a stipulated price of 25 lakhs. During this transaction, Reena Humayun paid Tk 11 lakh 60 thousand, leaving an outstanding balance of Tk 13 lakh 40 thousand. It has come to light that Mumtaz Begum concealed the information regarding the loan she had taken by mortgaging the plot at the bank when appointing the executor.

On March 31, 1989, the bank initiated a civil suit against Mumtaz Begum and her husband in the commercial court of Dhaka, seeking recovery of the outstanding loan amount. A preliminary decree was obtained on June 9, 1991. However, no application for a final decree was made within the stipulated three years, rendering the decree null and void. For the next 12 years, Agrani Bank authorities did not take any action.

In response to the alleged illegal auction process, Reena Humayun filed a civil suit to cancel the auction in the Fifth Joint District Judge Court of Dhaka. The suit was decreed on August 23, 2011, with the court declaring the auction proceedings as unprecedented, fraudulent, deceptive, collusive, and illegal. Subsequently, Agrani Bank and Nurul Islam Moni filed First Appeal No. 85/2012 with the High Court against the judgment, but it was dismissed on November 3, 2013.

The Appellate Division conducted a proper re-auction of the property and directed to pay Reena Humayun Tk. 25 lakh along with 15% simple interest. Additionally, the division permitted the withdrawal of the money deposited in the court. Simultaneously, it ordered Humayun to pay a solatium of two crore taka. Furthermore, the court instructed to pay Mumtaz Begum and her heirs to pay two crore taka and settle the bank's outstanding dues.

The Appellate Division directed the First Finance Court of Dhaka to deposit the remaining proceeds from the plot sale into the government treasury. In compliance with this order, the First Finance Court of Dhaka initiated the re-auction process.