Opinion | Deposits, FDRs And Disputes: The Expanding Legal Troubles Of Muhammad Yunus

Internal documentation paints a picture of a sophisticated financial network that has drawn the attention of both tax authorities and anti-corruption investigators.

The recent financial and legal disclosures surrounding Dr Muhammad Yunus present a complex portrait of a global icon under intense scrutiny. While long celebrated for his work in microfinance, internal documentation now paints a picture of a sophisticated financial network that has drawn the attention of both tax authorities and anti-corruption investigators.

The Financial Web: Deposits and Transfers

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Between 2018 and 2022, the Professor Muhammad Yunus Trust at Standard Bank Limited acted as a central hub for significant capital movement, with 128.39 crore BDT deposited and 127.4 crore BDT withdrawn. These funds were not static; they were dispersed across a wide array of institutions:

Diverse Allocations: 17.32 crore BDT was transferred to Grameen Telecom Trust at Dutch-Bangla Bank, while 1.61 crore BDT was moved to Rupayan Housing Estate Limited.

The FDR Strategy: A total of 108.61 crore BDT was distributed across 12 different banks specifically to be held as Fixed Deposit Receipts (FDRs).

Extensive Holdings: Investigators identified 103 FDRs associated with the Trust across ten banks and one financial institution. As of mid-2022, 26 of these remained active, while 77 had been encashed, totalling 81.73 crore BDT.

Legal Challenges and Allegations

The scrutiny of these finances has culminated in several high-profile legal cases that challenge the ethical foundation of Dr Yunus’s organisations:

1. Corruption and Embezzlement

On May 30, 2023, the Anti-Corruption Commission (ACC) initiated a case involving 13 individuals, including Dr Yunus. The allegations centre on the embezzlement of funds from Grameen Telecom through forgery. Specifically, it is alleged that approximately 26.22 crore BDT, which was intended for employees, was instead found in the accounts of union leaders and a Supreme Court lawyer.

2. Labour and Tax Disputes

Beyond corruption charges, Dr Yunus faces pressure regarding labour practices and personal tax obligations:

Labour Violations: A 2021 case in the Third Labour Court alleges violations of labour laws by Dr Yunus and three others.

The Gift Tax Ruling: Tax authorities sought a 15.39 crore BDT gift tax on donations totalling 76.73 crore BDT made to his various trusts. Although Dr Yunus challenged this in the High Court, his petitions were dismissed in May 2023, affirming the tax’s legality.

The ‘Unprofitable’ Contradiction

Perhaps the most striking allegation is the claim that Dr Yunus intentionally portrayed his companies as “unprofitable" to evade taxes and avoid contributing to workers’ welfare funds. This stands in stark contrast to the massive liquidity documented:

Massive Revenue: Grameen Telecom received 10,890.19 crore BDT from Grameenphone between 2003 and 2022.

Capital Reserves: As of June 30, 2022, Grameen Telecom and Grameen Kalyan held a combined total of 4,974.62 crore BDT in FDRs.

Missing Dividends: Despite these vast sums, the original investor, Grameen Bank, reportedly received no dividends, and no funds were documented as being spent for the welfare of its members.

The data suggests an organisation operating with immense financial resources while simultaneously being accused of failing its employees and the state. As these legal proceedings move forward, the narrative of Dr Muhammad Yunus is no longer just one of poverty alleviation but of a complex legal battle over transparency and fiscal responsibility.

Aminul Hoque Polash is a Bangladeshi political activist, researcher, and former government official with experience in national security, diplomacy, and state institutions. Views expressed in the above piece are personal and solely those of the writer. They do not necessarily reflect News18’s views.

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