Mohammad Lutfur Rahman (Badal), chairman of LR Group and former chairman of IFIC Bank, has protested a report titled “IFIC Bank: Loans, lies and laundering” published on 30 April 2026 in Daily TIMES of Bangladesh.
In a rejoinder on 2 May, he claimed that the report contains one-sided, misleading, speculative, and factually inaccurate allegations against him, which caused serious harm to his longstanding reputation.
Badal said the headline and highlights of the report falsely accuse him of involvement in money laundering without presenting any supporting evidence or documents.
He claimed the report attributed to him a statement that Sohidur Rahman borrowed BDT 75 million from him in 2022 and repaid it using bank loans taken under different names, which he never made. He stated that, as per an agreement dated 1 March 2022, Shahidur Rahman borrowed BDT 7 crore from him personally and later repaid the amount in full in accordance with that agreement. “The report has distorted this fact and falsely linked me to alleged misuse of bank loans, which is entirely speculative, fabricated, and misleading.”
Badal stated that he had no prior knowledge of the loans taken by Sohidur Rahman and Julfikar Hider. After publication of the report, he said he contacted Sohidur Rahman, who informed him that the loans were taken by mortgaging flats and are currently regular. The report presented wrong information on this issue.
He denied the report’s claim that the properties were not mortgaged, stating that he had been informed that the flats had already been mortgaged to the bank.
Badal also denied using two bank-owned vehicles—a Toyota Crown and a Toyota Prado—without approval. He stated that he remained outside the country from 10 December 2014 to 25 August 2024, and therefore could not have used those vehicles during that period.
Denying any connection with Md. Helal Ahmed, who was reported to be involved in collecting rent from flats linked to the project, he stated that neither he nor LR Group has any association with the individual.
He also rejected the allegation that he was exerting political influence to regain his directorship at IFIC Bank. According to him, he sought legal remedy through the court, which declared his removal illegal, and subsequent developments did not affect his eligibility as a director.
Badal denied holding any shares or ownership in Hotel Cox Today, calling the claim in the report false and malicious. He claimed holding required share in IFIC for more than 15 years.
He pointed out that he had no involvement in the loans in question and argued that, as a businessman he engaged in numerous financial transactions and give and take loan, wasn’t possible for him to know how other individuals arranged their financing.
Badal said his statements were completely misrepresented and deliberately distorted in the report to serve interest of a particular group.
Reporter’s response
The report has been compiled based on documents, conversations with relevant sources and bank officials, transaction records and separate probe reports.
According to IFIC bank transaction records obtained by TIMES, loans taken by two of his employees, were subsequently transferred to Badal’s personal account.
All the findings of the report regarding loan process and classification status were also based on audit observations, bank documents and available information.
During conversation with TIMES, this reporter asked Badal about bank loans given to Sohidur Rahman and Zulfiqur Hider, two employees of his LR Group, were routed to his personal account. Without denying, he said Sohidur borrowed Tk7.5 crore from him in 2022 that he paid back with the loans.
Asked why money was transacted from Zulfiqur’s account to his account, Badal replied that as per IFIC bank house building loan policy one person can avail Tk3 to Tk3.5 crore, which is why they both took the loans.
He claimed the flats mentioned in the report were mortgaged. However, documents obtained by TIMES show that the flats in Chottagram have not been mortgaged to the bank.
Badal denied using two bank cars but internal records and findings of IFIC Bank show he was actually using the cars. Bank officials say, in Badal’s absence, the vehicles were used for his family and business purposes.
Although he claimed he didn’t have any contact with Md Helal Ahmed, who looks after Chottagram flats, Helal himself admitted keeping in touch with him. Both TIMES and probe teams of Bangladesh Bank and IFIC Bank also confirmed their connections.
The report did not accuse Badal of money laundering. It said, loans taken for specific purpose but used for another purpose, which is as a classic routing structure.
Badal denied political links and putting pressure on the central bank, but the bank high-ups confirmed this matter to TIMES.
