Special Correspondent, Narsingdi

Concerns and anger have grown among investors over a purported agro-tourism project operated under the name ‘Diamond Resort Limited’ in the Kamargaon area of Shibpur upazila in Narsingdi. Several investors have alleged that the company collected a substantial amount of money by making various promises of attractive profits, monthly dividends and commissions for recruiting new members. They claim that as dividends have remained unpaid for a long period, recovering their principal has also become uncertain.

The aggrieved investors allege that as a major part of the project’s activities is based on member recruitment and commissions, it is essentially being operated in a manner resembling an MLM or pyramid-style business structure. However, whether the company’s business structure legally falls under the scope of an MLM or pyramid scheme is a matter to be verified by the relevant authorities.

It has been alleged that Mohammad Shamsul Alam Sajal, owner and managing director of Diamond Resort Limited, along with several others associated with the company, encouraged people to invest through various attractive packages. Some investors have also alleged the involvement of a retired banker named M R Khan. However, no statements from the individuals concerned could be obtained regarding these allegations.

Attractive Investment Packages and Promises of Commissions

According to information provided by the aggrieved investors, the company introduced various investment packages valued at Tk 300,000, Tk 600,000 and Tk 1.15 million. Investors alleged that these packages promised monthly profits or dividends at a fixed rate against the investment, along with commissions and bonuses for bringing in new members.

They claimed that because of the commission system for recruiting new members, many people brought their acquaintances and relatives into the project. However, as the promised dividends were not subsequently paid regularly and difficulties arose in recovering the principal, many investors found themselves in trouble.

Several investors further alleged that when they contacted the people concerned about recovering their dues, they were given various excuses and faced repeated delays. Some also claimed that they faced pressure or threats.

Allegations of Special Benefits for Women Investors

Several women investors, speaking on condition of anonymity, alleged that a woman named Salma Akter (Moni) encouraged them to invest. They claimed that members were recruited through a separate network or syndicate by promising special benefits for women investors.

However, these allegations could not be independently verified. No statement could be obtained from Salma Akter either.

Questions Over the Project’s Land and Actual Progress

It has been alleged that, in order to attract investors, the project was promoted as an international-standard agro-tourism venture to be developed on approximately 100 bighas of land. However, some investors claimed that questions had arisen regarding the ownership of the land advertised for the project, the project’s approvals and the actual development activities.

They alleged that the project’s future potential was highlighted through various attractive photographs, designs and visual presentations while the actual visible development did not take place on a scale proportionate to those representations.

However, no definitive conclusion can be reached regarding land ownership or project approvals without formal verification of the relevant documents by the appropriate government offices.

Dividends Halted, Uncertainty Over Recovery of Principal

Several investors claim that after investing in the project, they initially received dividends or profit payments for a few months, but the payments were subsequently stopped. They said that when they sought the return of their principal, they were given various reasons and asked to wait.

One investor, speaking on condition of anonymity, said, “I invested my life’s savings hoping for a high return. Now, let alone the dividends, I am not even getting my principal back.”

He further alleged that when he tried to contact the company, he found its office closed. He claimed that he later learned about a jewellery shop operating in the same building but was unable to contact the person concerned.

Questions from Investors About the Office

Based on the complaints of the investors, the reporter visited the relevant address to inquire about the company’s office. Although information was found that an office existed there, no clear information could be obtained regarding its regular operations, it was learnt.

However, official government documents and statements from the relevant authorities are necessary to ascertain the company’s activities, the operation of its office and the legality of the business concerned. Meanwhile, various sources have raised several other serious allegations against individuals associated with the company. However, as no independent evidence could be found to substantiate those allegations, they are not being presented as facts without verification.

No Statement Available

Several attempts were made to contact Mohammad Shamsul Alam Sajal, owner and managing director of Diamond Resort Limited, and others concerned to obtain their statements regarding the allegations. However, no statement was received from them by the time this report was published.

If the company subsequently provides any statement, documents or response to the allegations, they will be published appropriately.

Experts’ Advice

People familiar with economic affairs and consumer rights say that if a company’s income primarily depends on recruiting new members, collecting money from members and paying commissions, it is important to verify the company’s legal structure and approvals before investing.According to them, before investing in any project, investors should verify the company’s registration, approval from the relevant regulatory authorities, ownership of the land, project approvals, contractual documents, conditions for refunding money and the transparency of financial transactions. Those concerned believe that an investigation by the relevant government agencies into the allegations surrounding Diamond Resort would make the project’s actual structure, the legality of its investment-collection activities and the veracity of the investors’ complaints clearer.