Six UK-based property companies controlled by former Bangladeshi minister Saifuzzaman Chowdhury have been taken over by the administration, The Telegraph reports on Monday.
Saifuzzaman Chowdhury's property empire has unravelled amid a crackdown by the Bangladeshi authorities, which accuse him of syphoning money out of the country.
His UK property portfolio is said to be worth £170m and contains more than 300 properties.
The collapse comes amid a widening corruption probe that has also drawn scrutiny on former UK Treasury minister Tulip Siddiq, as part of a broader investigation into flats and houses bought by former allies and family members of ousted prime minister Sheikh Hasina.
Hasina is the aunt of Tulip, who resigned as Treasury minister earlier this year amid growing pressure over the anti-corruption scandal in Bangladesh.
A corruption trial against Tulip began this week in Bangladesh over claims that she illegally received a plot of land from her aunt's government. She denies the allegations.
Earlier in June, the UK's National Crime Agency (NCA) froze assets owned by Chowdhury after he was featured in Al Jazeera's investigative documentary The Minister's Millions.
This included a luxury £11m property in St John's Wood, north London, and a block of flats in Fitzrovia, central London.
The NCA took action against Mr Chowdhury following requests from the current government in Dhaka.
He has repeatedly denied wrongdoing and claimed that he is the victim of a politically motivated witch hunt. He has repeatedly said that he used legitimate funds to buy his overseas properties.
Administrators at Grant Thornton have now been tasked with selling a large chunk of Mr Chowdhury's assets, which largely consist of rental housing blocks in London and the South East.
Money generated from the sales would be used to repay creditors, which include Singaporean lender DBS and British Arab Commercial Bank.
Filings on Companies House also claim that Bangladeshi lender United Commercial Bank is also seeking to recoup $350m (£260m) from Mr Chowdhury.
It comes amid a complex corruption scandal in Bangladesh, with officials concerned over the vast UK property portfolios amassed by members of Sheikh Hasina's government.
As a former minister in Bangladesh, Mr Chowdhury has said previously that Sheikh Hasina treated him "like her son".
Tulip Siddiq, the UK's former anti-corruption minister resigned from her post in January amid claims she benefited from properties linked with the Awami League, her aunt's party.
Bangladesh's anti-corruption commission has been investigating several members of Sheikh Hasina's family, including Tulip, over accusations of corruption.
Tulip has denied any wrongdoing and called the allegations "completely absurd".
She told The Guardian that she does not plan to attend the trial in Bangladesh, saying: "I still don't know what the charges are against me.
"I feel a bit like I'm trapped in this Kafkaesque nightmare where I've been put on trial and I genuinely haven't found out what the allegations are and what the trial is about."
Tulip is one of 27 people formally indicted last week by two Bangladeshi courts, including her aunt, who remains in exile in India.
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