Gulshan cinema plots merged, Shanta gets commercial building approval

Shanta Holdings, a private real estate developer, has secured approval to merge four plots in Gulshan-1 that were originally allotted for cinema halls and develop a commercial building there. Allegations have emerged that the approval was granted without following RAJUK’s regular official procedures and board meeting process.Several RAJUK sources said officials had raised objections to the proposal, but the process was eventually advanced on the instructions of RAJUK Chairman Engineer Md Riazul Islam.The plots 14, 37, 41 and 43 in Gulshan (South) Commercial Area were allotted in 1975 for 99 years to two organisations, ‘Banichitra’ and ‘Chalachitra’. One of the key conditions of the allotment was that cinema halls had to be built on the land and that the plots could not be used for other purposes.Nearly five decades later, however, no cinema hall was built on the plots. Shanta Holdings subsequently gained control of the plots through power-of-attorney arrangements. On July 16, 2023, the company applied to merge the four plots, apparently with the aim of developing a large commercial structure.Objections inside RAJUKThe application moved through different RAJUK sections for a considerable period. Documents show that officials raised questions over several issues, including disputes surrounding the power of attorney, court directives and the proposed change in land use.Several RAJUK sources claimed that the chairman had shown particular interest in Shanta’s file from the outset. They said there was pressure from higher levels to move the file forward despite objections from mid-level officials.A few RAJUK officials also alleged that Shanta Holdings spent at least Tk 50 crore at the RAJUK building to get the file approved. However, no independent evidence of this allegation was found for this report.According to documents, on July 21, RAJUK sought a legal opinion from Supreme Court lawyer Md Imam Hasan on whether there was any legal barrier to issuing approval for the merger of the four plots and accepting the required fees. Imam Hasan replied that there was no legal impediment.The following day, July 22, Chairman Riazul Islam instructed officials to issue the approval. An approval letter allowing Shanta to deposit the plot-merger fees was issued the same day. It was signed by RAJUK Deputy Director (Estate and Land-1) Md Nazrul Islam and Assistant Director (Estate and Land) Md Ashraf Ali.The four plots together cover around 22 bighas and 18 kathas of land. Shanta Holdings has been allowed to deposit the merger fee for the land into the RAJUK treasury.Questions over legal and administrative processThe decision-making process has also raised questions because RAJUK has its own legal wing for providing legal opinions. Normally, when a legal complication arises over an application, the concerned section sends the matter to the legal wing for its opinion before the issue proceeds through the administrative chain. The matter is also required to be placed before the RAJUK board.In Shanta’s case, however, that process was allegedly not followed. Despite a written objection from Masum Ali Beg, then acting director of the Estate and Land-1 wing, the matter was not placed before the board. Instead, a private lawyer’s opinion was obtained and subsequently used as the basis for issuing the approval.The merger of the four plots has opened the way for construction of a large commercial building. This could also permanently remove the recreational facility originally intended for residents of Gulshan, a planned residential area.According to information provided by Shanta Holdings, the proposed building could be more than 35 to 40 storeys high. Each floor may have around 10,000–15,000 square feet of space. If the initial price is set at Tk 40,000–50,000 per square foot, the project’s potential total commercial value could exceed Tk 1,000 crore.RAJUK Director (Estate and Land-1) Dr Mohammad Shahadat Hossain said, Who did what to issue the approval letter is recorded in the file. I cannot comment beyond the authority’s approval. When contacted about the allegations, RAJUK Chairman Engineer Md Riazul Islam said, There is nothing personal here. Everything has been done through legal means.