2. Course Title: Legal Environment in Business
Course Code: BUS-203
Submitted to
SharminJahan
Lecturer,DIU
Submitted by
Section: B
Date of Submission: 12/04/13
Name ID.
Roni Kumar Ghosh 112-11-2085
Md .Mashiur Rahman 112-11-2086
Md. SajjadHossain 112-11-2091
BadhonSarker 112-11-2104
MT TaslimaAkter 112-11-2083
3. Page(¡)
Business law is very important for every contract. Without law cannot run
any contract? We prepared an assignment on real example of
undue influence, Revocation, fraud, Misrepresentation,
Novation. For this specific purpose I collected data and
information from various website. In this example we know
that important of business law. Many business people have
not knowledge about business law. So, in our country many
contract to be void. This type of cashes are occur in business
world. Its most common cashes in Bangladesh. Every day in
Bangladesh court were see in this cashes. So it’s most
important to know this cashes.
Executive Summery
4. Contents Page Number
Executive Summery (¡)
Introduction 1
Examples of Revocation 2-4
Examples of Misrepresentation 4-6
Examples of Fraud 7-9
Examples of Undue Influence 9-12
Examples of Novation: 12-15
Conclusion 15
Table of Contents
5. Introduction:
Case study in prospective in real business world in Bangladesh are most important in analysis
real case Bangladeshi curriculum for the subject of legal environments its focus on real case
which are helps to know how this case are occur we are try to solve this cases are Revocation,
Misrepresentation, Fraud, Undue Influence, Novation, we try to solve all case of Bangladesh
Many business people have not knowledge about business law. So, in our
country many contract to be void. This type of cashes are occur in business
world. Its most common cashes in Bangladesh. Every day in Bangladesh court
were see in this cashes. So it’s most important to know this cashes.
Objective:
The general objective is to access the “Employee Training and Development on BRAC Bank
Ltd” in Bangladesh.
Methodology:
In this study, exploratory research was undertaken to gain insights and understanding of the
overall the “Employee Training and Development on BRAC Bank Ltd” in Bangladesh to
determine their efficiency. After that a more comprehensive conclusive has been undertaken
to fulfill the main purpose of the study.
6. Examples of Revocation:
(1) Hotel license revoked, 29 arrested
A mobile court on Thursday raided a hotel in Dhaka and cancelled its permit.
A mobile court led by executive magistrate Mohammad Fakhruzzaman aided by RAB-2 raided
the Hyatt Regency (no connection with its more upscale namesake) situated in the Babul Tower
at Farmgate, Dhaka.
A press release of RAB-2 said 29 people were arrested in the raid, 15 of whom were allegedly
to be sex workers. Two separate cases have been lodged against the owner of the hotel and the
arrested.
Source:bdnews24.com/lh/shk/2040
Analysis:Hotel license revoked, 29 arrested a mobile court on Thursday raided a hotel in
Dhaka and cancelled its permit. This hotel is revoked agreement with government
(2)Government to revoke Ipco land-lease deal
The government will cancel a land lease deal signed in 1999 with Singapore-based company
Ipco International Limited, said civil aviation and tourism minister GM Quader on Monday.
He said the civil aviation authority of Bangladesh will require the land for the future expansion
of Zia International Airport, which is now "overcrowded".
7. The parliamentary standing committee on civil aviation last week asked the ministry to revoke
the deal for construction of a hotel and golf course on over 144 acres (435 bighas) of land
adjacent to the airport.
According to the local land registration office, the current market value of one bigha in that area
is around Tk 10 crore.
"On unanimous recommendation of the parliamentary standing committee, we are moving to
cancel the deal with Ipco," Quader told bdnews24.com on Sunday at his office.
"We are examining the legal implications before revoking the contract".
The minister said 90 percent of ground space at Zia International Airport was occupied by
aircraft.
"Where will we keep our new planes," said Quader, referring to state carrier Bangladesh
Biman's aircraft deals currently in the pipeline.
The minister said all the members of the parliamentary watchdog had visited the airport in
recent days and backed cancellation of the deal.
"We have observed that Ipco failed to act in accordance with the agreement," committee
chairman Engineer MosharrafHossain told reporters after a meeting Monday.
He said, under the deal signed with the Civil Aviation Authority of Bangladesh, Ipco was
supposed to start construction within one and a half years of signing.
"We have recommended cancelling the deal and also asking the civil aviation authority to take
legal action against the errant company," said Mosharraf, who was civil aviation minister in
1999.
He told bdnews24.com that the land was given to Ipco on a 60-year lease to construct a multi-
storied luxury hotel and golf course ahead of a NAM summit to be held in 2002.
The past BNP-led government in 2001 decided not to host the summit in Dhaka, but kept the
deal alive.
"My question is why the deal was not cancelled by the then government which backed out of
hosting the NAM summit," MosharrafHossain told bdnews24.com.
8. Ipco's executive chairman AbulKhairLitu says his company is not responsible for violating the
deal.
"We are not at fault. The blame goes to the government for not approving the plans."
"If the government wants, it can take the land back providing compensation as per the
agreement," Litu told bdnews24.com on Apr 21, when the standing committee first
recommended cancelling the deal.
Source:bdnews24.com/krc/rah/2059h
Analysis:Government revoked this agreement in thanking of general people my question is
why the deal was not cancelled by the then government which backed out of hosting the NAM
summit. We have recommended cancelling the deal and also asking the civil aviation authority
to take legal action against the errant company
Examples of Misrepresentation:
(1) "BRAC Bank assumes full responsibility for bKash's operations, as per Bangladesh Bank
directive. The accumulated physical cash balance of all bKash mobile an account, as per
Bangladesh Bank’s instruction, is held by BRAC Bank in an account which is under the
surveillance of Bangladesh Bank."
Furthermore, BRAC Bank maintains the record of all individual bKash mobile accounts in its
own system, the total balance of which is reconciled with bKash's pool balance on a daily basis,
it said.
To mitigate any confusion, Bangladesh Bank, via a letter on August 2 to BRAC Bank,
corroborated that bKash's operations were in full compliance with the guidelines for mobile
financial services.
BRAC Bank, the majority shareholder of bKash, was established in 2001 with the primary
objective of offering financial services to small entrepreneurs.
9. bKash takes the objective to another level, by way of mobile financial services to the under-
served population who otherwise do not have access to traditional banking services.
Source:Star Business Desk
Analysis:BRAC Bank assumes full responsibility for bKash's operations, as per Bangladesh
Bank directive. It’s the Misrepresentation its originally it’s held by BRAC Bank in an account
which is under the surveillance of Bangladesh Bank.
(2) The World Bank has said fresh implementation arrangements will be required to get
reengaged by it in the Padma Bridge project that will give much greater oversight to the Bank
and the co-financiers over the project procurement processes.
Clarifying its stance on the project, the Washington-based global lender issued a statement early
Wednesday.
It said the Bank remains concerned about corruption in Bangladesh in general and in the Padma
Bridge project in particular. “It’s for this reason that we’ve also made it clear that to engage
anew in the project will require new implementation arrangements that give much greater
oversight of project procurement processes to the Bank and co-financiers.”
The statement said that media reports have quoted senior Bangladeshi government officials
misrepresenting its position over the Padma Bridge project.
In this situation, the statement said, the Bank feels obliged to issue the following clarifications:
It is only after satisfactory implementation of all these measures as well as a positive report
from the external panel of internationally recognized experts that the World Bank will go ahead
with the financing of the project.
“The people of Bangladesh deserve a clean bridge. If we’re to move ahead, we’re insisting that
a credible investigation is undertaken and any project implementation be done in a manner that
ensures transparency and enhanced oversight,” the statement said.
It said the WB has shared repeatedly with the government of Bangladesh credible evidence of
corruption involving senior public officials related to the financing of the Padma Bridge. This
10. led the World Bank to cancel the US$1.2 billion credit in the absence of a credible response by
the government.
On September 20, 2012, the government agreed: To place all public officials suspected of
involvement in the corruption scheme on leave from government employment until an
investigation is complete.
To appoint a special inquiry and prosecution team within the Anti Corruption Commission
(ACC) to handle the investigation.
To grant access to all investigative information to an external panel of internationally
recognised experts who will advise the WB and co-financiers on the credibility of the
government’s investigations.
The statement claimed that after such types of arrangement, the Bangladesh government
requested the World Bank to consider again the financing of the Padma Bridge.
Source:Priyo News.htm
Analysis:The World Bank has said fresh implementation arrangements will be required to get
reengaged by it in the Padma Bridge project. It said the Bank remains concerned about
corruption in Bangladesh in general and in the Padma Bridge project in particular. “It’s for this
reason that we’ve also made it clear that to engage anew in the project will require new
implementation arrangements that give much greater oversight of project procurement
processes to the Bank and co-financiers.” To grant access to all investigative information to an
external panel of internationally recognized experts who will advise the WB and co-financiers
on the credibility of the government’s investigations.
Examples of Fraud:
(1) Police yesterday arrested fraud pir (spiritual leader) AmzadHossainBepari and three of his
associates on charge of torturing several children and women in the name of treatment in
Sirajdikhan.
11. Amzad was arrested at his den in Khasnagar village under the upazila along with associates
Nuru Member, 45, Kalam, 46, and Ilias, 60.
Three cases were filed against Amzad and 15 others on charges of deception and attempted
murder. The fraud pir is the main accused in each of the cases.
MdMatiur Rahman, officer-in-charge of Sirajdikhan police, told The Daily Star the arrests were
made around 10:30am following a report published on the ProthomAlo.
The arrestees were taken to the police station for interrogation.
Ironically, people are still crowding the den of Amzad, who claims to have been using different
techniques to “heal” his “patients”.
Additional District Magistrate Hasanul Islam said everyone involved in the ring would be
brought to book. He however said the administration was not aware of the matter so far.
Assistant Superintendent of Police SaiduzzamanFaruqui said the arrestees are being
interrogated. He said Amzad has already given some important information and the police are
working on it to trap his other accomplices.
The Rapid Action Battalion (Rab) is also working on the activities of the fraud pir.
Rab local camp commander ASP MdMilon Mahmud said he came to know about Amzad’s
activities about a week ago. He said he was waiting for Thursday as the number of visitors is
usually the highest on that day.
Superintendent of Police MdShafiqul Islam said Amzad is illiterate. He only knows two suras
(chapters of the holy Quran) but also makes mistakes while reciting those.
Source:TheProthomAlo
Analysis:Fraud pir are doing false business and two people are died this case so policy are
arrested pir and his three associated its grate fraud
(2) Destiny Tree Plantation Limited, the master fraudulent project of Destiny Group and
Destiny 2000 Limited, Lt. Gen. HarunAr Rashid has confessed to the interrogators of Anti
12. Corruption Commission [ACC] that the multilevel marketing company collecting money from
the people by selling 60 million trees though it has planted only 8.1 million by now. He said,
Destiny Tree Plantation Limited sold trees to 1.75 million people by suppressing the fact of
exact number of planted trees. The former chief of Bangladesh army further said that the
policymakers of Destiny Group did not pay any heed to his suggestions of 'moving slow', which
has resulted in current catastrophic situation of the organization.
It may be mentioned here that, Weekly Blitz started serializing the untold stories of massive
fraud and corruption by Destiny Group as well as its sister concerns Destiny 2000 Limited,
Destiny Tree Plantation Limited alone has collected over six thousand crore Taka from the
people by selling 60 million trees [each package of 10 trees were sold for TK. 10,000] while the
organization is promised to return the investors an amount of Taka Thirty Thousand crore [TK.
50,000 profit for each package of 10 trees] from end of 2012. Another investigation revealed
that Destiny Tree Plantation Limited has sold more than 12 crore trees to the people by giving
them false promise of five-fold profit within the span of few years. Though Lt. Gen Harun has
told the ACC interrogators about planting 8.1 million trees, in reality the real number of planted
trees is only a fraction of the claimed figure. It may be mentioned here that, more than 7 million
people has invested their hard-earned money into various fraudulent projects of Destiny Group
as well as its sister concerns Destiny 2000 Limited, Destiny Tree Plantation Limited, Destiny
Multipurpose Cooperative Society Limited, Best Air Limited, Boishakhi Television and other
enterprises.
Source: News BD24 The Destiny 2000 Limited fraud.htm
Analysis:Destiny Tree Plantation Limited, the master fraudulent project of Destiny Group and
Destiny 2000 Limited they Freud about 1.7milion people so government offs the company and
legal charge against this company.
Examples of Undue Influence:
13. (1) Bangladeshi singer Tishma accuses Mila
A battle has started now between two young singers of the new generation; when
TishmaLiliana [Tishma] issued a statement on Thursday, January 9, 2012 against another
popular singer Mila Islam [Tasbiha] bringing a series of allegations against her for attempting to
sabotage the music career of Tishma. Weekly Blitz immediately tried to get comment from
singer Mila on these accusations and even tried to connect her via her own website at:
www.milaislam.com. But the website was shown non active.
In a written statement, Tishma, whose debut album was released in 2002 made a number of
allegations against Mila Islam. She said, Mila Islam exerted her undue influence over the
program officials at Bangla Vision [a private television channel] and excluded her from a 'Eid
Show', though the channel already run their promotional showing Tishma as one of the
performers.
Tishma said, in 2007, during Indian Idol concert, Mila Islam tried to manipulate the sound
engineer and crews of RTV [a private television channel] to disrupt Tishma's performance.
Tishma also alleged that whenever she goes to any music director for working on her album or
song, Mila Islam surely contacts the same music director and tries to influence in aborting
Tishma's project. She also accused Mila and "her team" of spreading "rumors through internet",
though Tishma could not specify any such activities of Mila Islam.
Source:Weekly Blitz.htm(unde).htm
Analysis:A battle has started now between two young singers of the new generation; when
TishmaLiliana [Tishma] issued a statement on Thursday, January 9, 2012 against another
popular singer Mila. , in 2007, during Indian Idol concert, Mila Islam tried to manipulate the
sound engineer and crews of RTV [a private television channel] to disrupt
Tishma'sperformance.and take legal steps
14. (2) Scandalous Hall Mark Group website downed
The website of scandalous business conglomerate in Bangladesh, which allegedly swindled
millions of dollars from state-owned Sonali Bank Limited as well as some other financial
institutions in the country by using the undue influence of one of the advisors of the Prime
Minister as well as some other influential figures from the ruling party – has been suddenly
downed by the authorities of the company, as the website was containing important
information, which would be useful for the investigators, including Anti Corruption
Commission. The website addressed www.hallmarkgroupbd.com has been downed with the
sign 'Under Construction' to avert information centering activities of the company being leaked
to the media and the investigating agencies. It may be mentioned here that, The Hallmark Group
has secured nearly TK. 27 billion in loans from the Rupashi Bangla Hotel branch of the Sonali
Bank, allegedly, through fraudulent means. The biggest-ever financial crime, after busting of
another financial crime committed by Destiny Group, has put the government into extremely
challenges, especially when the ruling party is actively trying to grip the Nobel Peace Prize
winning Grameen Bank by knocking down Professor Mohammad Yunus, the founding father of
the institution. It may be mentioned here that, Yunus enjoys highest esteem internationally for
his excellence in creating an example of serving the lowest class in the society in attaining
economic emancipation.
While squeezed by Anti Corruption Commission, the ringleader of Hall Mark Group, Tanvir
Mahmud said, he had already acquired assets worth 20-times [US$ 6.6 billion] of the amount
that he borrowed from the state owned financial institution. Commenting on Mahmud's claim of
owning huge wealth, economists in Bangladesh are question as to why the government is not
confiscating all such properties until the entire amount of loan has been recovered from Tanvir
Mahmud's company Hall Mark Group.
However, state-owned Sonali Bank, apparently, is not interested to get back the entire amount
from the borrower right now. One of the directors of the bank, appointed under political
consideration by the incumbent government, told the media that the management of the bank
would ask the Hallmark Group to repay 50 per cent of the loan amount within next 15 days.
Bangladeshi finance minister AMA Muhit has violently reacted at media's role in exposing this
huge financial scam. Expressing anger, the finance minister said, ""… banking crisis, which is
not a crisis at all. It is a matter of TK. 3000 crore [30 billion] or 4000 crore [40 billion].
Nonsense! But you (media) are harming the banking sector by publicizing it. Banking sector is
confronted with questions whether all of it has crumbled down."
Meanwhile, two senior treasury bench members in the parliament blasted the Finance Minister
for what they called his callousness and unnecessary comments on the Hallmark.
15. In a statement to Bangladeshi media, general manager of Hall Mark Group claimed that the
group did not take any political recommendation or any "undue advantage" for obtaining the
loan worth TK. 27 billion from the state-owned Sonali Bank Limited.
Claiming transparency in the process of loan disbursement, the tensed GM said he had no
relation with political personalities, as the media highlighted, and nobody had favoured him in
securing the loan.
"The allegation of loan embezzlement against us is baseless as we took the financial assistance
for 34 institutions of the group from the bank as per the rules," the Hallmark GM said.
He dismissed the allegation that they took the loan by producing false documents.
The conglomerate has employed around 40,000 people for its different units.
But the reports in the media raised many questions about the group in the minds of the people
and put its [Hall Mark Group] reputation at stake.
It may be mentioned here that, Prime Minister's advisor Syed Modasser Ali has been accused of
collaborating with Hall Mark Group in siphoning such large sum of money from the state
owned bank. A front-ranking vernacular daily published report stating the advisor bought a
piece of land at Dhaka's Uttara residential area with the money he received from Hall Mark
Group.
While Hall Mark Group scam is getting prominent coverage in Bangladeshi and international
media, sixteen members of fraudulent multilevel marketing company, Destiny Group
comprising, Destiny Multipurpose Cooperative Society Limited, Destiny Tree Plantation
Limited, Best Air Limited, Destiny Bank Limited, Diamond Builders Limited, Destiny Medical
College and Hospital Limited etc obtained bail from the court of metropolitan magistrate in
Dhaka, while the issue of bail granted to five more members of the same fraud racket has been
challenged by the Anti Corruption Commission and hearing into the matter is due for
September 12. It was earlier reported in local and international media that, an advisor to the
Bangladeshi Prime Minister is holding shares in this fraudulent MLM racket, who had been
playing key role in salvaging the masterminds Destiny Group from facing severe legal
consequences.
Source:Weekly Blitz.htm
16. Analysis:The Hallmark Group has secured nearly TK. 27 billion in loans from the Rupashi
Bangla Hotel branch of the Sonali Bank, allegedly, through fraudulent means. The biggest-ever
financial crime, after busting of another financial crime committed by Destiny Group. Its great
undue influence of bank and bank fall many circus.
Examples of Novation:
(1) Novation Holdings will receive a combination of cash, stock and notes, secured by the
assets of SureScreen, as consideration for the sale. The total value of the sale is estimated at
$250,00
Certain statements contained herein and subsequent oral statements made by and on behalf of
Novation Holdings, Inc. may contain "forward looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward looking statements are
identified by words such as "intends", "anticipates", "believes", "expects", and "hopes" and
includes, without limitation, statements regarding Novation Holdings, Inc.'s plan of business
operations, product research and development activities, anticipated revenues and expenses and
potential contractual arrangements and obligations. Also, our management may make forward-
looking statements orally to investors, analysts, the media and others. Any statements made in
this news release about an action, event or development, are forward-looking statements. Such
statements are based upon assumptions that in the future may prove not to have been accurate
and are subject to significant risks and uncertainties. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of the Company.
These risks and others are included from time to time in documents we file with the Securities
and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form
8-Ks. Other unknown or unpredictable factors also could have material adverse effects on our
future results. Accordingly, you should not place undue reliance on these forward-looking
statements. Although the Company believes that the expectations reflected in the forward-
looking statements are reasonable, it can give no assurance that its forward-looking statements
will prove to be correct.. The Company undertakes no obligation to update or correct its own
forward-looking statements, except as required by law or those prepared by third parties that are
not paid by the Company. The Company's SEC filings are available at http://www.sec.gov.
Novation of the consultant's appointment can offer real benefits to a client, but it must do the
work to make it work. Otherwise, it can end up with legal nonsense that risks being thrown out
of court.
17. Visiting from the States recently, my brother asked why London Underground still chooses to
install chocolate vending machines that swallow your money but obstinately refuse to let go of
their chocolate bars. What is so irksome is not the loss of your money, but the fact that there is
no one on hand to blame. Shouting at an inanimate object brings your sanity into question and
ringing around customer complaints numbers is just not worth the hassle.
Frustration of this sort appears to be key to the popularity of design and build with developer-
clients. It provides a very accessible one-stop complaints desk: the design-and-build contractor.
The contractor is responsible for everything – whether or not it has performed.
Source:http://www.sec.gov.
Analysis:Holdings will receive a combination of cash, stock and notes, secured by the assets
of Sure Screen, as consideration for the sale. The total value of the sale is estimated at
$250,00its contain "forward looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These risks and others are included from time to time in
documents we file with the Securities and Exchange Commission, including but not limited to,
its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could
have material adverse effects on our future results.
(2) More than one-third of design-and-build projects start with the consultant being appointed
by the employer-client and subsequently novated to the design-and-build contractor. (Novation
here means roughly that the employer-client's contract with the consultant is transferred to the
contractor, as if the contractor had been the client from the outset.) Such novation offers distinct
advantages for the client: it has full control over the design before novation, continuity of the
same consultant post-novation, and can still look to its contractor for single-point responsibility.
However, the contractual documentation and the mechanism of the novation have to be
considered carefully to avoid potential pitfalls.
Badly prepared novation contract documents are disturbingly common. In most cases, a very
sketchy novation document effectively states, with wildly optimistic simplicity, that, from the
date of the execution of the novation agreement, the contractor will step into the role of the
client under the appointment document, as if it, rather than the client, had appointed the
18. consultant from the outset. The idea is that where you read "employer" in the appointment, you
now understand "contractor".
And that, as a rule, is it. There are rarely any provisions to deal with the many clauses in the
appointment document that will simply not make sense in these new circumstances, particularly
where the services section of the consultant's appointment had been drawn up to serve for the
entire job in the event that the novation should not, in fact, take place.
Source:Bangladesh Business News (BBN).
Analysis: More than one-third of design-and-build projects start with the consultant being
appointed by the employer-client and subsequently novated to the design-and-build contractor.
Such novation offers distinct advantages for the client: it has full control over the design before
novation, continuity of the same consultant post-novation, and can still look to its contractor for
single-point responsibility.
Conclusion:This type of cashes are occur in business world. Its most common
cashes in Bangladesh. Every day in Bangladesh court were see in this cashes.
So it’s most important to know this cashes.
