TDS Desk:

Mobile financial service-provider Nagad Limited has been sued by the central bank on charges of pecuniary offences involving Tk 6.45 billion worth of e-money issued sans currency backup.

A total of 24 individuals, including Nagad’s former chairman Syed Mohammad Kamal and former managing director and CEO Tanvir Ahmed Mishuk, have been accused of fund embezzlement through issuing Tk 6.45 billion in e-money without maintaining currency reserves.

Joint director of the payment system department of Bangladesh Bank Sarker Mohammad Amir Khasru filed the “fraud case” with Motijheel police station on February 03, a BB official confirmed the matter to The Financial Express correspondent on Tuesday.

Among the others sued are former Nagad directors Shafayet Alam, Maruful Islam Jhalak, Aminul Haque, Niaz Morshed and Faisal Ahsan Chowdhury.

The BB official said the banking regulator did “a thorough inspection over Nagad from April 21 to April 25 in 2024 due to concerns over its operational irregularities and found some instances of irregularities”.

Because of the fact, the central bank appointed an administrator to the mobile financial-service provider and the administrator’s investigation found Tk 6.45 billion shortfall resulting from the creation of e-money without maintaining requisite cash reserves, which is a “serious violation of the regulation”.

Nagad came under close scrutiny by the regulator after the changeover in state power following the July-August mass uprising as there are allegations that the digit-finance outfit has been operating their business through infraction of regulations with “the blessings of the influential in the then ruling party, Awami League”.

Earlier, the central bank suspended the licence for Nagad Digital Bank PLC through a review of the process.