The Bangladesh Supreme Court Bar Association has started an investigation into allegations that retired district judge-turned-lawyer Masdar Hossain cheated a businessman by taking Tk 1.2 crore without providing effective legal remedy.

The complaint said that he took the money on the promise of resolving a VAT-related case of the company but failed to take necessary legal steps and did not provide proper updates on the case.

Acting secretary of the association, Mahfuzur Rahman Milon, told New Age on Saturday that a probe committee has been formed. He said that vice-president Humayun Monju is leading the investigation into the complaint.

Masdar Hossain, a vocal advocate for full judicial separation, may face cancellation of his practicing licence by the Bangladesh Bar Council or criminal action by the Anti-Corruption Commission if the allegation is referred for investigation.

In the written complaint submitted to the Supreme Court Bar Association, Md Jamal Hossain, legal and admin officer of Noor Plastic Industries Ltd, on December 1, 2025, alleged that advocate Md Masdar Hossain received the money in phases between 2012 and 2013 under a verbal agreement to resolve a tax discrepancy case.

Masder Hossain, who turned lawyer, has admitted receiving money in connection with a case but claimed that the funds were ultimately taken by another lawyer, whom he described as a ‘fraudster’.

According to the complaint, a VAT dispute involving Tk 1,02,69,722.28 arose against the company following a complaint filed with the Customs, Excise and VAT office in Jessore on May 17, 2012.

To challenge the case, the company’s chairman Nurul Islam Bepari engaged advocate Majdar Hossain, who allegedly demanded Tk 1.9 crore to ‘settle’ the matter and reduce the tax liability to zero.

Masder Hossain and the businessman is the resident of same district Rajshahi.

The complaint states that the company paid Tk 1 crore through cheques in several instalments, including Tk 50 lakh, Tk 3 lakh, Tk 37 lakh and Tk 10 lakh, which the lawyer acknowledged through receipts.

Later, an additional 20 per cent—Tk 20 lakh—was deposited to the government treasury as part of the VAT appeal process, reportedly outside the initial agreement.

However, the complainant alleged that the lawyer did not properly pursue the case and failed to provide updates, leaving the company in uncertainty.

Subsequently, through another lawyer, the company learned that the case had already been disposed of on September 10, 2025, with a penalty of Tk 42,09,273 imposed against it.

The complainant alleged that despite receiving a total of Tk 1.2 crore, the lawyer neither fulfilled the agreement nor safeguarded the company’s legal interests, causing significant financial loss.

The complaint also claims that the lawyer has refused to issue no-objection certificates (NOCs) in two other pending cases involving the company.

Seeking redress, the complainant urged the bar association to take appropriate action against the lawyer and ensure refund of the money along with compensation.

Masdar Hossain said the case was brought by his junior lawyer, Fatuhul Bari, and he acted only as the filing lawyer.

He said the cheques were issued in his name for that reason. He added that the money was withdrawn from the bank in his chamber and handed over to a lawyer named Delwar, a fraudulent lawyer, in the presence of others, including a company manager.

He had not got any money. Moreover, he spent money from his pocket.