Md Nazrul Islam, former chairman of Fareast Islami Life Insurance Company Limited, was Thursday placed on a five-day remand in a case filed over embezzlement of Tk 2.07 billion.
Earlier on the day, the Anti-Corruption Commission (ACC) arrested Md Nazrul Islam from the city's Bangshal area.
According to the ACC, while serving as chairman of the insurance company, Nazrul Islam, in collusion with other accused, misused his authority to buy and sell 33.56 decimals of land and buildings at 36 Topkhana Road in the company's name, amounting to Tk 2.07 billion.
From the proceeds, he transferred Tk450 million through various banks to conceal the illegal origin of the funds.
Out of this amount, Nazrul Islam and his wife, Mrs Taslima Islam, allegedly embezzled Tk195 million in collusion with the sellers.
The ACC prayed to the Senior Special Judge's Court in Dhaka for a seven-day remand to interrogate Nazrul Islam and uncover further details about the case, including the involvement of other individuals, and the court granted him five days' remand.
Insurance claim settlements in the country took a nosedive, exposing the fragile state of insurers marred by cash shortages, irregularities and corruption.
According to data released by the Insurance Development and Regulatory Authority (IDRA), only 27.12 percent of insurance claims were settled by the end of in January-March period in 2025 in the country. In monetary terms, insurers paid out Tk26.63 billion against total claims amounting to Tk 98.20 billion.
Fareast Islami Life Insurance, which had the highest total claims of Tk 29.76 billion, settled only Tk 583 million, reflecting a settlement ratio of just 1.96 percent.
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