The tallest building in Bangladesh, City Centre, has become the focal point of a contentious legal dispute between a local conglomerate and a Dubai-based developer, with the High Court (HC) staying the properties transfer on the 37-storey building.
The conflict centres on Dubai's Belhasa Engineering and Contracting Company, which holds a 25 per cent stake in the building and claims its local partner, the majority shareholder, has failed to pay dividends and has not convened an annual general meeting (AGM) since the building began commercial operations.
In 2003, Accom Engineering, represented by Md. Obaidul Karim, who also serves as managing director and shareholder of Belhasa Accom JV, formed the company.
On October 22, the HC issued an order restraining the company from dissipating or transferring its assets, creating any charges or liabilities, or transferring funds for a period of three months. The HC bench of Justice Ahmed Sohel passed the order after hearing a company matter filed by Belhasa Engineering and Contracting Company.
However, the bitter ownership dispute threatens not only the future of this landmark but also the broader landscape for foreign direct investment (FDI) in Bangladesh's real estate sector, according to lawyer of Belhasa, Barrister Ragib Rouf Chowdhury.
"Obaidul Karim has misused his authority as a managing director showing a lack of cooperation with the board of company. The petitioner on various occasion failed to carry his responsibilities, including failure to call AGM and conducting audit for several years compromising deals with prospective investors," according to the case statement.
"He also recruited employees without approval from the board of the company and has breached his fiduciary duties."
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