Rajuk issued the land use clearance to construct the building in the middle of the canal while the Department of Environment, Dhaka Wasa and Civil Aviation Authorities too issued clearance certificates for the building's plan.

Asked how Rajuk could issue the clearance for the building, Rajuk Chairman KAM Haroon said, "Ask the town planner." When asked, Town Planner Jahurul Hoque said, "I do not know how the clearance was issued, I have to see the relevant file."

The BGMEA completed construction of the building before Rajuk approved the plan, though construction of any building without approved design is punishable under the Building Construction Act of 1952 (amended in 2006).

When the case of the proposed building was placed at the Rajuk board meeting on July 14, 2003, a senior engineer objected to it on the ground that Rajuk itself had a 13-acre development project in the area and Buet was carrying out a study in the canal area.

As per a board meeting decision, BGMEA was asked to consult the Buet expert team and obtain clearance to construct the building, which BGMEA did not do.

Rajuk in a letter on August 20, 2006 asked BGMEA to comply with certain preconditions with a view to rectify unauthorised construction of the building.

The preconditions included demolition of the portions of the building built in deviation from the proposed plan, paying plan approval fees at penalty rate (ten times more than regular) and construction of a bridge in between the building and Panthapath.

Rajuk, following a board meeting decision, issued a notice on the BGMEA on July 30, 2006 directing it to pay penalty and demolish some portions of the building for constructing it before obtaining approval of the proposed construction plan.

The Building Construction Committee (BC committee-4) of Rajuk slapped a penalty of Tk 12.5 lakh on BGMEA. BGMEA finally deposited Tk 12.5 lakh to Rajuk on May 12 this year and initiated construction of the bridge.

Rajuk Chairman Haroon said: "I am not aware that Rajuk has received the penalty money from BGMEA. In fact the BC committee deals with it."

A Rajuk official said at an inter-ministerial meeting, presided over by LGRD Adviser Anwarul Iqbal on Thursday, that the building did not have approval from the authorities.

Anwarul Iqbal told the reporters that Rajuk should decide on what action should be taken against the BGMEA building.

Haroon said, "We will take action as per the recommendation of the Buet expert team now doing a study on the integrated Hatirjheel development project."

BGMEA President Anwar Ul Alam said they got a two-bigha plot in the canal area from Export Promotion Bureau and paid Tk 2.7 crore for it. "Rajuk issued land use clearance in favour of the BGMEA and then we submitted the building plan," he said.

Asked why they constructed the building without obtaining approval, he said, "We started and finished construction of the building because the rainy season was approaching and the price of construction materials started going up."

He claimed that they by and large have gone by the laws in constructing the building. "We will go to court if situation demands," said Alam.