British American Tobacco (BAT), a multinational cigarette company, has been running a 16-acre factory in the residential Mahakhali DOHS area of Dhaka. The factory was initially established in 1965 when Mahakhali was a rural area. The lease, granted for 30 years and renewed twice, expired in 2024. Despite environmental and public health risks, BAT tried to secure a third lease extension for three more years.

The Cantonment Board, concerned about the factory’s impact on residents and air quality, refused the extension and set a relocation deadline of June 7, 2025. BAT challenged this decision in court, first at the High Court and then at the Appellate Division, but lost both appeals. The company also threatened international arbitration to delay compliance.

BAT has used strategic influence to maintain its position. Several government officials and their children have been placed on the BAT board or given jobs, including former secretaries, military officials, and other high-ranking bureaucrats. This network has helped BAT secure regulatory and policy advantages over the years.

The factory emits strong tobacco odors and particulate matter, causing severe air pollution in Mahakhali. Public health advocates and tobacco control activists have long demanded the factory’s relocation. In 2023, the Environment Ministry downgraded tobacco from the “red” to the “orange” hazardous list, raising concerns about BAT’s influence on policy.

The government holds a minor 0.64% share in BAT, which the company has allegedly leveraged to confuse or influence policy makers. Legal action has also been taken against BAT for labor law violations, but the company reportedly continues to exert pressure through legal notices and threats.

In essence, BAT’s continued attempts to delay relocation illustrate the tension between corporate influence, public health concerns, and regulatory enforcement in Bangladesh.