The competition authority is carrying out two investigations against e-commerce company Evaly for alleged embezzlement of funds and breach of competition rules.

The commerce ministry sent a letter to the Bangladesh Competition Commission (BCC) on July 4, asking it to open a probe into Evaly after the central bank found that the digital commerce platform was involved in misappropriating funds.

"We have already started working on the investigation upon request from the commerce ministry," said Md Mofizul Islam, chairperson of the commission.

The BCC has also been investigating Evaly in a suo moto case filed in February for selling goods through an unusual cash-back offer through an advertisement.

The ad offers 60 per cent and 40 per cent cash-back, subject to next sales.

In an interim verdict, the commission ordered to suspend all sales arrangements related to the conditional cash-back offers.

The Eid Dhamaka ad was a violation of the Competition Act, according to the interim verdict.

"The Evaly case on the cash-back offer is still under investigation," said Islam, adding that the two probes would continue simultaneously.

He said the BCC had filed the case against Evaly after it found the cash-back offers to be anti-competitive.

In recent months, the e-commerce platform has come under regulatory scanner for its business practices, which include offering unusual discounts. Customers also have alleged delays in the delivery of products. 

Earlier, the commerce ministry suggested the Anti-Corruption Commission (ACC) investigate the allegations of embezzlement or transfer of Tk 338.62 crore against Evaly.

The ministry also requested the home ministry initiate a probe against the e-commerce platform and take steps.

Besides, the commerce ministry asked the Directorate of National Consumer Rights Protection to take measures against the firm for alleged breaching of consumer rights, and examine whether the digital commerce platform was engaged in any anti-competitive practices, said Md Hafizur Rahman, director-general of the WTO Cell of the ministry.

Evaly had a total asset of Tk 91.69 crore as of March 14. Of the sum, the current asset was Tk 65.17 crore, and the total liability was Tk 407.18 crore, according to a central bank probe.

On the day, the liability of Evaly to its customers was Tk 213.94 crore, and to merchants Tk 189.85 crore, said a letter of the commerce ministry to the ACC on July 4.

The company was supposed to have at least Tk 403.80 crore as the current asset, given the money received from customers and products taken from merchants.

However, it has current assets of Tk 65.17 crore, said the letter.

As a result, Evaly would only be able to deliver products or make refunds to 16.14 per cent of the customers with the current assets, said the letter, citing the BB probe report. It is not possible for the company to settle the rest of the liabilities, it said.

No trace of Tk 338.62 crore taken from customers and merchants could be found, the commerce ministry said.

In this case, there is a possibility of embezzling or illegally transferring Tk 338.62 crore, said the letter, recommending the ACC probe the matter in light of the BB report and take legal actions if any financial irregularities were found.

"It is necessary to identify the gap," said Hafizur Rahman.

"Where has the rest of the money gone? If the rest of the money is not available with the company, then it becomes a big risk for customers."