Bangladesh Bank (BB) has filed a case against mobile financial service (MFS) provider Nagad, alleging fraud, embezzlement, and financial irregularities amounting to Tk 645 crore.

On behalf of the central bank, Sarker Mohammad Amir Khusru, joint director of BB's payment systems department, filed the case at Motijheel Police Station on Monday.

The lawsuit names 24 individuals, including 16 officials of Nagad Ltd and eight officials of the Directorate of Posts.

They include Syed Mohammad Kamal, former chairman of Nagad Ltd; Tanvir Ahmed Mishuk, former managing director; and directors Md Shafayet Alam, Maruful Islam Jhalak, Mohammad Aminul Haque, Faisal Ahsan Chowdhury, and Giles Alastair James Farley.

Others from Nagad include Md Rakibul Islam, head of finance operations; Md Abu Raihan, chief technology officer; Ashish Chakraborty, former chief information officer; former directors M Tamzid Rahman, Syed Arshad Reza, Md Mizanur Rahman, and Rezaul Hossain; and Rahel Ahmed, former CEO.

The defendants from the Directorate of Posts include former director generals SM Shahab Uddin, Sushanta Kumar Mondal, Sudhanshu Shekhar Bhadra, Bahija Akter, Md Siraj Uddin, Md Fayzul Azim, Md Harunur Rashid, and Tarun Kanti Shikdar.

Nagad introduced itself as a financial arm of the Bangladesh Post Office when it entered the market in 2019 and is still operating on a temporary licence from the central bank.

After the interim government took office in August 2024, Bangladesh Bank appointed an administrator to Nagad due to concerns over operational irregularities.

The administrator's investigation revealed several alleged discrepancies, most notably a Tk 600 crore shortfall resulting from the creation of e-money without corresponding cash backing—an alarming violation in the financial sector.

Additionally, unauthorised withdrawals totalling approximately Tk 1,711 crore were identified from 41 distribution accounts designated for government allowances.

In light of these findings, the central bank has taken legal action to address the alleged misconduct and ensure financial integrity.

Officials stated that corrective measures have been implemented under the leadership of the appointed administrator to eliminate financial irregularities within Nagad.

The authorities have assured customers that steps are being taken to ensure stability and transparency in the company's operations.

Additionally, the central bank will appoint auditors to conduct a forensic audit of Nagad's previous operations, alongside a regular audit for the fiscal year 2023-24.

When contacted, Tanvir Ahmed Mishuk, former CEO of Nagad Ltd, told The Daily Star via WhatsApp messages that they had been given hints in different ways that lawsuits would be filed, though the reason was unclear.

"Now, it is a fact that several top officials of Nagad and former postal directorate officials are facing legal action," he added.

"What's shocking is that the case is based on false and fabricated claims. They allege a Tk 645 crore e-money shortfall, but Bangladesh Bank itself confirmed in a November letter that the actual shortfall was Tk 48.6 crore," he said.

"So, the question is whether the new administrators were responsible for creating this shortfall," he asked.

"Instead, they are trying to shift the blame onto us. We are preparing for legal action to expose this," he added.