Home ›› 17 Sep 2021 ›› Front
Controversial e-commerce platform Evaly’s customers and merchants, who supplied products, are worried about refunds after its Chief Executive Officer Md Rassel and his wife Shamima Nasrin, the platform’s chairman, were detained on Thursday.
Their detention follows a raid at their Mohammadpur residence by the Rapid Action Battalion after a customer filed a fraud case against the duo at Gulshan Police Station in the morning.
RAB’s Legal and Media Wing Director Commander Khandaker Al Moin told The Business Post that the duo would be handed over to police after interrogation.
Case filed
Dhaka Metropolitan Police’s Deputy Commissioner (Gulshan Division) Md Asaduzzaman said Arif Baker, a resident of Purbagram of Rupganj Upazila of Narayanganj, filed the case naming Rassel and his wife, Shamima.
Several other officials of Evaly have also been accused in the case, he added.
Baker filed the case under sections 420, 506 and 406 of the Penal Code.
Section 420, dealing with cheating and dishonestly inducing deliver of property, carries a maximum penalty of seven years imprisonment and fine.
Section 406 (criminal breach of trust) provides for a maximum of three years’ imprisonment or fine or both.
Section 506 said that whoever commits the offence of criminal intimidation shall be punished with imprisonment of maximum of two years, or with a fine, or both.
The plaintiff said that he had ordered goods worth Tk 3.11 lakh from Evaly but did not get them within the stipulated time.
Dhaka’s Metropolitan Magistrate Asaduzzaman Noor has ordered an investigation into the case and file a report within October 21.
The fate of merchants and customers
The customers of Evaly were gathering in front of the Rassel’s house on Sir Syed Road’s Niloy Comprehensive holdings at Mohammadpur after hearing the news of the raid. There were mixed reactions.
Hundreds of cheated Evaly customers expressed grievance and frustration over getting back their money.
Sajib, one of the customers, cried and said, “I have received a cheque for Tk 3 lakh. Now Rassel has been arrested. What will happen to my money?
“We have been hoping for so long that we will get our money back. But if he is in jail, I am afraid I won’t get back my money. What will I do now? Where do I go?”
Another customer Majba Alam said he had placed several orders and made transactions of around Tk 5 lakh. He is yet to receive goods worth Tk 50,000 from Evaly.
“Those of us who paid in advance are now worried about whether we will get the money. The government should take over the company and refund customers,” he added.
Not only the customers but also many merchants who supplied goods for Evaly are worried.
In two different submissions to the commerce ministry, Evaly stated that it owes Tk 311 crore to its clients and Tk 206 crore to merchants.
Financial status of evaly
Evaly has been accused of filing a fraudulent audit report with the Registrar of Joint Stock Companies and Firms (RJSC).
The e-trader submitted its annual financial statements for the financial year 2019-2020 to RJSC on August 29, which the authorities concerned dispatched to the Ministry of Commerce right away.
Evaly started its journey in December 2018. According to its audit report for FY19-20, the company incurred a loss of Tk 2.29 lakh six months after launching. At the end of FY19 and FY20, the amount of loss rose to over Tk 2.38 core and Tk 103 crore, respectively.
However, the company claims its intangible assets were Tk 54 lakh at the end of June 2019.
At the end of June 2020, it increased to Tk 12.13 crore. It stands at Tk 438.45 crore now.
According to the audit report, Evaly’s customer liability was around Tk 128 crore while its liabilities to merchants stood at around Tk 10.5 crore.
On July 17, a Dhaka court barred Rassel and his wife from leaving the country amid an ongoing investigation into embezzlement charges against them.
On September 14, the commerce ministry decided to request the home ministry to take legal actions against Evaly for violations of laws and deceiving customers.
“Evaly violated many provisions of the Penal Code 1860, Digital Security Act and Consumer Rights Protection Act,” Hafizur Rahman, additional secretary of the commerce ministry, told the media.
Appointing administrator in Evaly
Company law expert Advocate Ahsanul Karim said the e-commerce company’s operation would halt due to a lack of guidance from the authority as the management of Evaly will be behind bars.
“This will make the return of consumers and merchants dues uncertain,” he told the Business Post.
Still, there is scope to appoint an administrator to run the company and ensure payment of merchants and customers.
“Appointing an administration would be a good solution to the crisis,” said Karim.
But the commerce ministry and Office of the Registrar of Joint Stock Companies and Firms will have to come up with a step to do so, he added.
