Al Mostafa Group MD faces extortion, land-grabbing allegations

Allegations have emerged that Md Mostafa Kamal, managing director of Al Mostafa Group, based in the Meghnaghat area of Sonargaon, Narayanganj, filed multiple lawsuits using security cheques issued during business transactions, harassed businesspeople and used his influence over law enforcement agencies to exert pressure on them.

According to the allegations, following the suspension of the company's business operations, security cheques provided during long-standing commercial relationships were used to initiate multiple legal proceedings without first reconciling outstanding accounts.

Affected businesspeople further alleged that a retired police officer has been assisting in exerting pressure on businesses and facilitating harassment through the Detective Branch (DB) of police.

The complainants claimed that Mostafa Kamal was previously involved in Awami League politics and, as an influential local figure, was allegedly involved in various unlawful activities, including land grabbing.

Following the political change in Bangladesh on 5 August 2024, Al Mostafa Group's business operations reportedly came to a virtual halt. Subsequently, instead of settling outstanding financial obligations, the company allegedly began filing an increasing number of lawsuits against its business partners.

Several affected businesses described these activities as an organised practice of "case-based extortion" and systematic legal harassment.

Haque Group sued in 29 cases

Haque Group, one of Bangladesh's oldest industrial conglomerates, maintained a business relationship with Al Mostafa Group for approximately 14 years.

According to Zahidul Islam Bidyut, chief operating officer of Haque Group, bank cheques were provided at different times as security deposits during their long-standing business relationship.

Following the political changeover in August 2024, Al Mostafa Group allegedly stopped supplying goods, creating the need for both parties to reconcile their financial accounts.

Despite repeated proposals from Haque Group to settle outstanding payments through mutual discussions, Al Mostafa Group's managing director and his representatives allegedly refused to participate in reconciliation meetings.

According to Haque Group officials, instead of pursuing a negotiated settlement, Al Mostafa Group filed 25 cases under the Negotiable Instruments (NI) Act using security cheques.

Additional cases were reportedly filed with police stations over the same commercial dispute, bringing the total number of cases against Haque Group to 29.

Despite Haque Group's repeated willingness to discuss and settle outstanding payments, the complainants alleged that Al Mostafa Group has continued filing cases rather than pursuing reconciliation.

An official of Haque Group said, "Over the past 14 years, our total business transactions with Al Mostafa Group amounted to approximately Tk114 crore, of which around Tk112.45 crore has already been paid. According to our calculations, the outstanding amount is approximately Tk1.55 crore.

"However, Al Mostafa Group claims that more than Tk5 crore remains outstanding, while lawsuits have been filed claiming approximately Tk11 crore."

The official further alleged that cases had been filed even against cheques for which partial payments had already been made.

In some instances, separate cases were allegedly filed using the same cheque and supporting voucher.

"Despite repeatedly requesting reconciliation meetings, Mostafa Kamal has refused to sit with us. We have also learned that similar cases have been filed against several other businesses," the official said.

He further alleged that the lawsuits were intended to harass businesspeople and divert attention from legal proceedings connected to the July uprising.

"If recovering legitimate dues were the actual objective, he would have agreed to reconciliation discussions rather than continuously filing lawsuits," the official added.

According to the complainants, similar cases have reportedly been filed against several other businesses, including Elin Food.

Such cases have allegedly been initiated across multiple districts, including Narayanganj, Dhaka, Jashore, Naogaon, Kishoreganj, Narsingdi, Cumilla, Chattogram, and Noakhali.

Late-night DB police operation

Allegations have also emerged regarding the alleged misuse of law enforcement agencies in connection with commercial disputes.

According to a written complaint submitted to the commissioner of Dhaka Metropolitan Police (DMP), a team from the Detective Branch (DB) conducted a late-night operation at the residence of the chief operating officer of Haque Group.

The complaint alleged that the officer was taken away from his residence by DB personnel.

According to the complainant, instead of formally recording his arrest at the DB office, the authorities subsequently showed him arrested in connection with a case registered at a police station.

The written complaint requested an investigation into the conduct of the police officers involved, the authorisation of the operation, its legal jurisdiction, and the procedural legitimacy of the arrest.

Questions raised over ex-police officer's role

Another major allegation against Al Mostafa Group concerns the involvement of a retired assistant superintendent of police in the company's activities.

Affected businesspeople alleged that the former police officer has been actively involved in managing business disputes and related legal proceedings.

They further claimed that his previous professional identity and connections within law enforcement are being used to exert pressure on businesspeople.

The complainants questioned the nature and extent of the retired officer's responsibilities, particularly as Al Mostafa Group's regular production and commercial operations reportedly remained suspended.

Land encroachment

Beyond commercial disputes, allegations of illegal land occupation and environmental damage have previously surfaced in media reports concerning Mostafa Kamal.

The company has reportedly faced allegations of occupying river areas, government-owned khas land, and privately owned land belonging to local residents by sand-filling in the Meghnaghat area of Sonargaon.

Allegations of illegal gas connections

Al Mostafa Group has also faced allegations of using illegal and unauthorised gas connections at its industrial facilities.

According to the allegations, factory operations in the Sonargaon industrial area were conducted using unauthorised gas connections.

These allegations have reportedly appeared in media coverage on several occasions.

Several affected companies further claimed that legal proceedings have been used to pressure them into making payments.

They described these alleged activities as "case-based extortion" and attempts to extract money through legal intimidation.

No link between Mostafa Kamal and Meghna Group

To avoid confusion arising from similarities in names, individuals familiar with the matter have clarified that Md Mostafa Kamal, managing director of Al Mostafa Group, is not the same individual associated with Meghna Group.

According to local residents and employees of the respective organisations, the two companies are entirely separate entities with different ownership, management, and business identities.

They have urged the public not to associate Meghna Group or its officials with the allegations raised against Al Mostafa Group.

Call for independent investigation 

Haque Group and other complainant businesses have called for an independent investigation and a lawful resolution of the disputes based on an accurate reconciliation of financial transactions.

They have also demanded an impartial investigation into the use of security cheques, the circumstances surrounding the filing of multiple lawsuits, the legal grounds for police operations, and the alleged involvement of the retired police officer.

According to the complainants, every business has the legal right to pursue legitimate financial claims through the judicial system.

However, they emphasised that legal procedures should not be misused as instruments of unjustified harassment, intimidation, or pressure against business partners.

Attempts were made to contact Mostafa Kamal for comments regarding the allegations. However, he did not respond to the phone calls.

Meanwhile, when contacted on Saturday, retired police officer ASM Azad said, "I work for Al Mostafa Group. Therefore, it is my responsibility to oversee everything." 

When asked why the company continued filing cases against businesspeople instead of pursuing settlement discussions, he said, "Of course, we will file cases to recover our outstanding payments. Let them pay the money, and there will be no cases."

Regarding the alleged DB police operations, Azad said, "Yes, I conducted operations using DB police, and I will do so in the future. You can write whatever you want."