Four law enforcement agencies are investigating allegations of fraud against 29 digital commerce platforms. The commerce ministry has also asked for information about companies whose bank accounts have been seized, and charge-sheets have been filed against them.
The government has taken this initiative in a bid to facilitate refunds to defrauded e-commerce customers.
According to ministry sources, some e-commerce platforms have partially refunded their customers who did not receive the goods they paid for. However, 19 companies did not hand out any refunds at all.
The four law enforcement agencies will recommend further steps after reviewing the current financial situation and ongoing legal process surrounding the 29 e-commerce companies, especially those who are not cooperating with the customer refund process.
Of these platforms, Criminal Investigation Department (CID) is investigating ten companies, Police Bureau of Investigation (PBI) five, Rapid Action Battalion (RAB) seven, and the Special Branch (SB) of Bangladesh Police seven.
Speaking to The Business Post on condition of anonymity, a commerce ministry senior official said, “Four law enforcement organisations have been given the task to investigate the e-commerce companies, so that the customers can be refunded.
“In a meeting held last August, it was decided that the respective investigating agencies will seek directives from the court, so that the defrauded customers can be refunded with the money in company accounts.”
The Bangladesh Financial Intelligence Unit (BFIU), operating under the Bangladesh Bank, has conducted preliminary investigations against around 50 e-commerce companies facing allegations of fraud.
Evidence of suspicious transactions has been found against 36 e-commerce platforms, and this list has been handed over to the CID. The BFIU has found no evidence of money laundering against the remaining 14 companies.
Police headquarters has informed the commerce ministry that across the country, the trial process of 137 cases is currently underway against e-commerce platforms. The CID, PBI and DMP are investigating most of these cases.
The commerce ministry has sought information about these cases.
According to sources, following BFIU preliminary investigation against 36 companies, CID has filed cases against 13 of these platforms. Initial investigation is underway against nine companies.
No complaints have been found against the remaining 14 companies after investigation.
Bangladesh’s e-commerce industry picked up steam during the Covid-19 crisis, when people remained mostly at home due to quarantine measures.
Despite a significant rise in popularity during the period, widespread incidents of corruption, harassment, embezzlement and fraud tarnished the industry’s image. Irregularities in the industry caused thousands of customers to lose crores of taka, and many became penniless.
Most customers who got defrauded are yet to get refunds. Besides, the CEOs of many e-commerce platforms facing allegations of fraud are currently on the run from the law, or behind bars.
Sources say cases filed against such companies have witnessed little progress. This in turn has caused the defrauded customers to lose hope.
Though many e-commerce platforms embezzled thousands of crores of taka by scamming people with lucrative offers, the Bangladesh Bank managed to halt the transactions of Tk 514 crore in payment gateways.
There are allegations that a large amount of the embezzled funds have been laundered abroad.
The e-commerce industry is still growing in Bangladesh, and currently stands at Tk 5,000 crore.
According to commerce ministry data, Tk 525 crore of the customers’ money – paid to 27 e-commerce platforms – was stuck in different payment gateways on June 30, 2021. Tk 383.97 crore – paid to 15 platforms and stuck in gateways – have been refunded to customers.
Due to the ongoing trial process, the authorities could not facilitate the refund process of the total amount stuck in payment gateways.
Tk 18.64 crore, paid to ten e-commerce platforms Boom Boom, Thole, Anonder Bazar, Ardian Mart, Bangladesh Deal, Shrestho.com, Alif World, Dalal Plus, Sofetic and 99-Global, are currently stuck in payment gateways.
The commerce ministry has taken the initiative to refund defrauded customers with money stuck in payment gateways, and funds from the respective e-commerce companies’ bank accounts.
The 19 companies that handed out no refunds at all are – E-Orange, Wecom, Needs, 24TKT, Akash Neel, Priyo Shop, Amar Bazar, Ashtar Protik, BarirDokan.com, Nirapod, Infinity Marketing Ltd, Needle Inc, AirMall Ltd, Bogura e-shop.com, Fanam.com, Laksur Enterprise, Palli Store, Tanvir Enterprise, E-Needs Ltd.
Tk 38 crore, paid to these companies, remain stuck in payment gateways. However, the refund amount due is multiple times more than this amount.
Sources say Tk 42 crore have been refunded to defrauded customers, but another Tk 258 crore is still due.
The trial process of a case against Evaly is underway in the High Court, so the commerce ministry has taken no initiative to refund Evaly customers. Evaly faces the allegation of embezzling the largest amount of money from their customers.
Addressing the uncertainty surrounding the refund process, industry insiders say unless the defrauded customers get back their money, consumer trust in this industry will not return to this industry.
Irregularities committed by Evaly brought public attention to the widespread scam and fraud plaguing Bangladesh’s e-commerce industry. Soon, around 50 such companies, including E-Orange, QCoom, Alesha Mart, and Dhamaka started facing allegations of consumer fraud.
The gravity of the situation then drew the attention of the government. The refund process for defrauded customers is moving ahead slowly.
