BSEC Seeks IDRA Probe into Alleged Tk 114 Crore Irregularities at Progressive Life

Staff Correspondent: The Bangladesh Securities and Exchange Commission (BSEC) has sent a letter to the Insurance Development and Regulatory Authority (IDRA) seeking an investigation into alleged financial irregularities involving Tk 114 crore at Progressive Life Insurance Company Limited.

The move follows allegations of financial misconduct, including suspected misuse of policyholders’ funds, improper financial reporting, excessive commission payments and other irregularities allegedly committed between 2009 and 2012. However, four months after the letter was issued, IDRA has not announced any new investigation committee or specific regulatory action based on the BSEC communication.

On 12 March, BSEC sent the letter to IDRA following a complaint submitted by Progressive Life’s entrepreneur director and former vice chairman Pradip Sen. The complaint alleged financial irregularities involving the company’s internal operations and policyholders’ funds.

According to the BSEC letter, the allegations named former Progressive Life chairman Nasir Ali Shah, former audit committee chairman Nazim Tajik Chowdhury, and former managing director M A Karim among individuals allegedly involved in the reported irregularities. The complaints include allegations of inflated premium income reporting, double commission payments and other financial irregularities involving customer funds.

IDRA Says Letter Was Not Received Earlier

Although BSEC issued the letter in March, IDRA officials said the document had not reached the authority earlier.

According to IDRA spokesperson Saifun Nahar Sumi, the authority learned about the matter during a recent meeting with Progressive Life Insurance officials and collected the letter afterwards. She said the authority has started the process of reviewing the matter and taking necessary steps.

Management Audit Report Identified Tk 114 Crore Irregularities

The controversy surrounding Progressive Life’s financial activities dates back more than a decade.

In 2014, Progressive Life’s board decided to conduct a management audit covering the period from 2009 to 2012. Audit firm Hoda Vasi Chowdhury & Co. Chartered Accountants was appointed to conduct the review.

The audit report reportedly identified financial irregularities amounting to approximately Tk 114.22 crore and held senior officials, including the chairman, directors, managing director and other executives, responsible for alleged misuse of company funds. The report was submitted on 15 July 2014.

The reported irregularities included questionable land purchases, improper commission payments, unrecorded premium collections, duplicate premium receipts, unauthorized financial benefits and other accounting-related issues.

Tk 16.70 Crore Alleged Loss From Aftabnagar Land Purchase

One of the major allegations relates to the purchase of land in Dhaka’s Aftabnagar area.

According to findings mentioned in the management audit report, Progressive Life purchased three plots measuring 20.62 kathas from Eastern Housing Limited in 2011 for approximately Tk 25.62 crore.

The audit reportedly found that the actual value of the land was around Tk 8.92 crore, resulting in an alleged excess payment of Tk 16.70 crore. The report held the company’s chairman and board members responsible for the alleged financial loss.

The audit also raised questions regarding ownership of a 7.08-katha plot. Although Progressive Life reportedly paid the full amount for the land, ownership transfer of that portion has allegedly not been completed.

Eastern Housing Limited reportedly informed the Criminal Investigation Department (CID) that legal complications prevented completion of the ownership transfer process.

Regulatory Reviews Raised Further Questions

The allegations were previously examined by several authorities, including the Anti-Corruption Commission (ACC), IDRA and BSEC.

The ACC reportedly investigated the matter but later closed its inquiry after legal changes limited its jurisdiction over certain insurance-related financial matters. The commission subsequently requested IDRA to take necessary action regarding the allegations.

Following the ACC communication, IDRA conducted an investigation and reportedly identified 38 types of irregularities, including issues related to the Aftabnagar land purchase. The investigation report was submitted to the IDRA chairman in 2018.

The regulatory findings raised questions over whether stronger measures were taken to address the alleged irregularities, including possible recovery of disputed funds and accountability of individuals identified in audit and investigation reports.

IDRA Directed Progressive Life to Take Legal Action

Following a hearing in 2019, IDRA instructed Progressive Life to file legal cases against individuals identified as responsible in the management audit report.

The authority later issued reminders in 2022, asking the company to provide details of legal action taken against those responsible.

However, questions were raised over the process as some individuals named in audit findings reportedly remained connected with the company’s management and decision-making structure.

CID Investigation Finds Evidence in Aftabnagar Land Case

A CID investigation into the Aftabnagar land purchase case reportedly found evidence supporting allegations of financial misconduct.

According to the investigation report submitted to the court in 2025, the individuals involved in the purchase process allegedly failed to protect the company’s interests by approving the transaction without proper verification of ownership and market valuation.

The CID report stated that the transaction allegedly resulted in an excessive payment of Tk 16.70 crore due to an improper purchase process.