Even after Buying Ownership of Sunlife, Green Delta Incurs a Loss of Tk 345 Crore

Abdur Rahman Abir: Green Delta Insurance has incurred a loss of nearly 350 crore taka even after purchasing the ownership of Sunlife Insurance. In 2023, Green Delta Insurance and its affiliated entities bought 43 percent ownership of the life insurance company.

At the time of acquiring Sunlife, the deficit in the company (after deducting liabilities from assets) stood at 268 crore 17 lakh 65 thousand 534 taka. On the other hand, 77 crore 9 lakh 65 thousand 250 taka was spent to buy the company’s shares. In other words, Green Delta Insurance’s total deficit from purchasing Sunlife Insurance amounts to 345 crore 27 lakh 30 thousand 784 taka.

Earlier, an investigation by Insurance News BD revealed that through manipulation and accounting jugglery in the income-expenditure accounts, more than 850 crore taka was siphoned off from the funds of this non-life sector company.

According to the information, Green Delta Insurance purchased 1 crore 54 lakh 19 thousand 305 shares of the promoters of Sunlife Insurance. This constitutes 43.12 percent of the total shares of the life insurance company. At a price of 50 taka per share, the total value comes to 77 crore 9 lakh 65 thousand 250 taka.

Five subsidiary companies of Green Delta purchased 35.66 percent. Among these institutions, Green Delta Insurance PLC took 10 percent, Green Delta Capital Limited 8 percent, GD Assist Limited 6 percent, Green Delta Securities Limited 6 percent, and Professional Advancement Bangladesh Limited 5.66 percent.

The remaining 7.46 percent was purchased by Farzana Chowdhury and eight officials working at Green Delta and various other institutions. These are: Farzana Chowdhury 2.33 percent, Syed Moinuddin Ahmed 2.33 percent, Md. Rafiqul Islam 2.33 percent, Rubaiyat Ahmed 0.11 percent, Md. Tanvir Yazdani 0.11 percent, Bellal Hossain Patwary 0.11 percent, Subhasish Barua 0.02 percent, and Syed Aliul Ahbab 0.11 percent.

461 crore taka in assets that do not exist in reality

The assets shown at the time of purchasing Sunlife Insurance have no scope for liquidation into cash. In other words, the company has liabilities but no cash in its funds.

At the time of share purchase, assets amounting to 461 crore 1 lakh 31 thousand 563 taka were shown in the company. Of this — outstanding premium money from lapsed policies: 338 crore 4 lakh 11 thousand 992 taka; revaluation of the purchased floor of BTA Tower: 13 crore 54 lakh 97 thousand 520 taka; advance payment of income tax to the government: 6 crore 60 lakh 1 thousand 697 taka; and 1 crore taka with Peoples Leasing.

Among these assets, there is no possibility of recovering the outstanding premiums. This is because all the policies have already lapsed.

There is no scope for liquidating the 13 crore 54 lakh 97 thousand 520 taka related to BTA Tower. The BTA Tower was purchased for 9 crore 16 lakh 11 thousand 936 taka. Due to annual depreciation expenses shown against the floor, its value had become zero by 2023. Yet the value of this floor has again been shown as 13 crore 54 lakh 97 thousand 520 taka. Consequently, there is no possibility of recovering this amount.

On the other hand, the 6 crore 60 lakh 1 thousand 697 taka paid as income tax has been deposited into the government treasury; this amount also cannot be recovered. The 1 crore taka with Peoples Leasing likewise has no chance of recovery.

In other words, the actual assets of Sunlife Insurance amount to 101 crore 82 lakh 20 thousand 354 taka.

On the other side, the company’s liabilities stand at 369 crore 99 lakh 85 thousand 888 taka. Of this, customers’ dues amount to 309 crore 37 lakh 19 thousand 979 taka. Among the remaining creditors are — government VAT and tax dues: 31 crore 64 lakh 34 thousand 738 taka; dues to officers and employees: 5 crore 32 lakh 69 thousand 779 taka; dues to the Insurance Development and Regulatory Authority: 1 crore 74 lakh 25 thousand 332 taka; and outstanding office rent: 2 crore 60 lakh 17 thousand 541 taka. Altogether, the deficit stands at 268 crore 17 lakh 65 thousand 534 taka.

According to this calculation, after deducting actual liabilities from actual assets, the deficit in the company stands at 268 crore 17 lakh 65 thousand 534 taka. On the other hand, 77 crore 9 lakh 65 thousand 250 taka was spent to purchase the company’s shares.

In other words, Green Delta Insurance’s total deficit from purchasing Sunlife Insurance amounts to 345 crore 27 lakh 30 thousand 784 taka.

Green Delta’s breach of agreement on settling customers’ dues

According to Clauses 10 and 10.3 of the share purchase-sale agreement of Sunlife Insurance, the liability for all insurance policies issued prior to the transfer of ownership rests entirely with the current company. The present board of directors of the company is legally obligated to settle these outstanding insurance claims.

Yet Green Delta Insurance — that is, the present board of Sunlife Insurance — is taking no initiative to settle the outstanding insurance claims of customers. Even the information of the new directors has not been updated on the company’s website. As a result, even after the transfer of ownership, customers have filed multiple lawsuits in the name of the then board of the company.

Making allegations of such breach of the terms of the agreement, the then board led by the company’s then Chairperson Professor Rubina Hamid had sent a legal notice to Farzana Chowdhury, CEO of Green Delta Insurance, and the present board of directors of Sunlife Insurance. This notice was sent on 10 March 2024.

How more than 850 crore taka vanished from Green Delta’s funds

Through manipulation and accounting jugglery in the income-expenditure accounts, more than 850 crore taka has been siphoned off from Green Delta’s funds. This information has emerged from Insurance News BD’s investigation after examining the company’s financial reports from 2007 to 2025, special audit reports, and other documents.

The investigation shows that 368 crore 69 lakh taka was made to vanish from the funds by showing inflated equity growth through manipulation. In this equity-growth manipulation, the value of assets was increased by 146 crore 98 lakh taka through revaluation. Before these assets were even sold, 54 crore taka was withdrawn as dividend from this revalued asset reserve.

Illegally, 225 crore taka was shown as advance payments under other heads. Excess expenditure of 171 crore taka was incurred. On the other hand, despite having profits, 263 crore taka was borrowed from banks. Through accounting manipulation, equity was reduced by 54 crore taka and cash flow by 13 crore 49 lakh taka.

In addition, customers’ deposited premiums, VAT and tax money were concealed; illegal expenditures were made; excess commissions were paid; credit business was conducted; premium rates were violated; business was carried on without reinsurance; and irregular financial benefits were given to the chief executive. However, by exerting influence to suspend the activities of the special auditor and by not providing information to the special auditor and investigation team, these irregularities and corruptions of Green Delta Insurance PLC have remained hidden.

Attempts were made several times to contact Farzana Chowdhury, Chief Executive Officer of Green Delta Insurance PLC, on her mobile phone and WhatsApp to obtain a statement on this matter, but no response was received. As a result, it was not possible to obtain any statement from the present authorities of Sunlife Insurance on this issue.