On the afternoon of Tuesday, local administration in Kuakata, Patuakhali, halted construction of the Istanbul Hotel and Resort.
Officials from the Kuakata Beach Management Committee and Kuakata Municipality took action because the project lacked proper approvals from the relevant authorities (specifically, full approval from the Barisal Divisional Commissioner) and violated building construction laws.
Present at the site were Md. Arifuzzaman (Member Secretary of the Kuakata Beach Management Committee and Kalapara Upazila Nirbahi Officer) and Md. Yasin Sadek (Administrator of Kuakata Municipality and Assistant Commissioner, Land). After stopping the work, they posted a prohibition banner on the site.
The banner stated: “Due to construction of this establishment without the approval of the proper authorities, activities are hereby declared stopped by order. Strict legal action will be taken against those who violate this directive.” It was issued by Kuakata Municipality and Kalapara Upazila Administration.
Kuakata Municipality Administrator Md. Yasin Sadek explained that constructing a building without proper authority approval is a punishable offense under the Building Construction Act. Additionally, the land is allocated in Kuakata’s master plan for railway infrastructure. He confirmed that the site falls under Kuakata Municipality according to the current BS survey.
The project covers roughly 21 acres 66 decimals (in SA Khatian No. 292 of Latachapli Mouza, near Musalliyabad village in the Kuakata municipal area). Construction of a mosque and convention hall had been underway, along with land development and boundary walls on at least six acres. Work reportedly began after the national parliamentary election in February. Local sources state that the project is supervised by Masud Sayedee, the Jamaat-e-Islami MP for Pirojpur-1 and son of the late Jamaat leader Delawar Hossain Sayedee.
A local representative, Monir Musulli, claimed the project has papers from the Fire Service and Department of Environment, has applied to the Barisal Divisional Commissioner for building permission, and obtained a no-objection certificate from Kuakata Municipality. He suggested political motives behind the action. Separately, Rakhine Umachan of Haripara in Kalapara Upazila has filed a civil suit claiming ownership of the land through his grandfather.
Social media promotions have marketed the project as “halal tourism” in Bangladesh, with share ownership offered for as little as five lakh taka.
Financial and Land Controversies (May 2026 Investigations)
The October halt follows earlier investigative reporting that raised serious questions about the project’s finances and land holdings.
In mid-May 2026, Asia Post published reports questioning the whereabouts of investor funds and discrepancies in land claims. One report titled along the lines of “Where did investors’ Tk 175 crore go in Masood Sayedee’s Istanbul Hotel Project” found that the company (Istanbul Hotel & Resort Limited) had collected substantial sums—reportedly around Tk 1.9 billion (190 crore) through bank channels over about nine months (with higher claimed totals from sales representatives, potentially approaching Tk 3 billion or more from thousands of investors).
Over 92% of the banked amount (about Tk 1.75 billion / 175 crore) had been withdrawn, leaving roughly Tk 15 crore in accounts. No significant construction was visible on site at the time of a reporter visit (only partial boundary work and a small structure estimated to cost a few million taka). The land is near Kuakata beach, about two kilometers from the sea.
Asia Post noted that the company is a private limited company (with Masud Sayedee as chairman and equal 25% shareholding among four individuals, including Managing Director DM Emdadul Haque).
Experts pointed out that private companies cannot lawfully offer shares to the public without converting to a public limited company and obtaining Bangladesh Securities and Exchange Commission (BSEC) approval. Promotional materials heavily featured Masud Sayedee and references to his late father and Jamaat-e-Islami, though the party officially denied any formal business affiliation.
A related investigation highlighted that the company had obtained only preliminary approval from Kuakata Municipality (around January 7, 2026) for construction on about 6 bigha of land, while marketing a 30-bigha project and selling shares on that basis well before full approvals.
Additional land purchases or agreements were claimed, but many faced ownership disputes, court cases (including from Rakhine community members and others asserting ancestral rights), and sale restrictions. Full project approvals remained incomplete, with conditions attached to the municipal clearance.
Company Response (May 23, 2026)
In response to the Asia Post coverage, Masud Sayedee issued a video statement on social media. He described the report as motivated and misleading for using his name in the headline, emphasizing that Istanbul Hotel is not his personal enterprise but one involving investments and shares from many people, with him merely fulfilling a management role. He called the question of “where the 175 crore went” irrelevant, stating that the money remains where it was—in the name of Istanbul Hotel and Resort—and that the funds have been invested in land to keep them secure from bank “occupiers” or looters. He alleged the reporting aimed to undermine the project, divert public attention, and obstruct its commitment to job creation and economic development in Bangladesh.
The company and its representatives later sent a legal notice to Asia Post seeking withdrawal of the reports and an apology, warning of a Tk 1,000 crore defamation and compensation suit. They maintained that investor funds are fully secured (in land, banks, and FDRs) and denied misappropriation.
Broader Context
Kuakata has seen rapid growth in hotels and resorts amid rising tourism, but local authorities and media have repeatedly flagged unauthorized constructions, master-plan violations, and aesthetic/environmental concerns.
The Istanbul project was promoted as a large-scale “halal” five-star resort with phased completion targets extending to 2030. The October 27 action marks the most concrete official intervention to date against this particular development.