21/05/2026
Government has decided to place Bashundhara Residential Area under the authority of Dhaka North City Corporation, ending decades of near-complete control by Bashundhara Group.
Decision was approved at a cabinet meeting on 7 May. According to officials from the Ministry of Housing and Public Works, the city corporation will now be responsible for collecting holding taxes, providing civic services and managing public facilities in the area.
For years, Bashundhara Residential Area has operated almost independently, leading many residents and observers to describe it as a “state within a state.” The private developer has managed roads, security, sanitation, playgrounds, and other services, while government agencies had limited authority there.
Residents and property owners told Prothom Alo that Bashundhara Group imposes its own rules and fees. Buyers purchasing land from private owners reportedly must pay an additional Tk 500,000 per katha to Bashundhara authorities, separate from government taxes. The company says these charges cover infrastructure development, including roads, lighting, landscaping, bridges, and maintenance.
Flat owners also pay annual service charges to the Bashundhara Welfare Society, an organization many residents believe is closely aligned with the developer.
The residential project covers around 3,500 acres and is home to more than 50,000 families. With an estimated population exceeding 210,000, it has become one of Dhaka’s largest and most influential private residential zones.
Government officials say that once the transition is complete:
the city corporation will collect property taxes,
government agencies will provide civic services,
public facilities will come under public administration,
and a separate police station may be established.
Officials also stated that Bashundhara Group and the Bashundhara Welfare Society will no longer be able to collect fees from residents outside government regulations.
The move follows renewed political attention after the BNP-led government took office earlier this year. Sources say prime minister instructed authorities in March to begin the process of bringing the area under city corporation control.
The issue had surfaced previously during the rule of the Awami League government, but no decisive action was taken.
Bashundhara authorities say they are reviewing the government’s decision and will announce their official position later. They also argue that agreements with Rajdhani Unnayan Kartripakkha allowed them to continue managing the area until development work is completed, possibly until 2034.
However, RAJUK chairman Reazul Islam rejected that interpretation, stating that the area falls under city corporation jurisdiction and should be handed over accordingly.
The report also highlights broader concerns surrounding Bashundhara Group and its chairman Ahmed Akbar Sobhan. Following the political changes after the 2024 uprising, the Anti-Corruption Commission launched investigations into allegations of corruption, money laundering, and illegal asset accumulation involving members of the Sobhan family.
Opinions among residents remain divided. Some fear that transferring authority to the city corporation could reduce security, increase commercial activity, and damage the neighborhood’s organized environment. Others argue that private control has created a system lacking accountability, where ordinary residents face excessive fees and unequal treatment.
Urban planner Adil Muhammad Khan said that no private residential area should function as a separate governing authority, adding that completed projects should legally be handed over to the appropriate public institutions.
AIUB LLB Admission Test and SAT Reading and Writing Questions Based on the Passage
Question 1: Central Idea
Which choice best states the central idea of the passage?
A. Residents of Bashundhara Residential Area oppose all forms of government involvement.
B. The government plans to transfer control of Bashundhara Residential Area from private management to public administration.
C. Bashundhara Group has completed all development work required by law.
D. The city corporation plans to expand Bashundhara Residential Area into neighboring districts.
Correct Answer: B
Question 2: Vocabulary in Context
As used in the passage, the phrase “state within a state” most nearly means:
A. an internationally recognized independent country
B. a military-controlled territory
C. a privately controlled area operating with unusual independence from government authority
D. a region with a separate language and culture
Correct Answer: C
Question 3: Supporting Evidence
Which detail from the passage best supports the idea that Bashundhara Residential Area operated independently from government institutions?
A. The area contains more than 50,000 families.
B. The city corporation could not collect holding taxes there.
C. The project began with four blocks in 1987.
D. Residents pay annual service charges.
Correct Answer: B
Question 4: Inference
Based on the passage, why do some government officials believe Bashundhara Group is resisting the transfer of authority?
A. They believe the area is unsafe under city corporation management.
B. They want additional land for future expansion.
C. They fear losing a significant source of influence and revenue.
D. They disagree with RAJUK’s development plans.
Correct Answer: C
Question 5: Author’s Purpose
What is the primary purpose of the passage?
A. To advertise housing opportunities in Bashundhara Residential Area
B. To explain a government decision and the controversy surrounding private control of the area
C. To compare different residential projects in Dhaka
D. To argue that private housing developments should be banned
Correct Answer: B
Question 6: Command of Evidence
Which quotation best supports the claim that some residents value Bashundhara’s current management system?
A. “The city corporation cannot collect property taxes from there.”
B. “Many incidents do not come to light.”
C. “People in Bashundhara can sleep with open doors without fear of theft or robbery.”
D. “A state within a state cannot exist.”
Correct Answer: C
Question 7: Text Structure
How does the passage mainly develop its discussion?
A. By presenting a chronological history of Dhaka’s urban development
B. By comparing Bashundhara Residential Area with foreign cities
C. By describing a government decision and presenting perspectives from officials, residents, and experts
D. By focusing entirely on corruption allegations against business leaders
Correct Answer: C
Question 8: Logical Reasoning
Which consequence is most likely if Bashundhara Residential Area officially comes under city corporation control?
A. Residents will stop paying any taxes or service charges.
B. Government agencies will oversee civic administration and public services.
C. Bashundhara Group will gain greater authority over infrastructure.
D. The area will immediately become commercially unrestricted.
Correct Answer: B
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