For nearly two decades, Akhtar Mia has run a scrap business on Mazar Road in Gabtoli. Yet keeping his small shop open means paying much more than rent and utility bills.
The 150-square-foot shop costs him around Tk12,000 a month, including other bills. He also pays Tk8,000 every month to three local groups, he said.
Nearby tea-stall owner Amir Hossain pays Tk7,000 in monthly rent and another Tk5,000 to influential local people.
Both names are pseudonyms as the traders fear reprisals.
They said scrap dealers, tea-stall owners, vegetable vendors, cobblers and other small traders routinely have to make such payments to continue doing business.
“This is the rule if you want to do business,” they said.
Their experiences reflect a wider problem across Dhaka, where extortion has become an additional cost for thousands of small traders already struggling with rent, raw materials and household expenses.
Police have identified 1,200 alleged extortionists in Dhaka, underscoring the scale of a problem that traders say persists despite repeated government assurances of a crackdown.
Extortion remains widespread
During visits on Sunday and yesterday to Mazar Road, Mohammadpur, Shyamoli, Mirpur and Karwan Bazar, this correspondent found roadside markets and temporary stalls occupying busy roads and public spaces.
Traders said local influential groups regularly collect money from vendors, with the amount varying according to the type and size of business.
A fruit seller on Bosila Road said people monitor who opens a business and how much it earns. Collections continue from evening until late at night, the trader said, with payments starting at around Tk200 a day.
A clothing seller operating from a van on a government road in Shyamoli said he also pays Tk200 a day despite running the business only part-time.
The road from Mohammadpur Krishi Market through Shyamoli to Tajmahal Road is lined with temporary stalls, with trading continuing from noon until late at night.
Karwan Bazar traders still paying
In Karwan Bazar, traders say extortion has continued despite protests and assurances from the authorities.
Last December, a group of alleged extortionists armed with sticks attacked traders taking part in a human chain against extortion, according to traders.
Although the administration later assured them that action would be taken, traders said the collections continued.
They said they pay Tk200–300 a day, with demands imposed on businesses ranging from scrap dealers to suppliers of raw materials.
Several traders said extortion stopped for a period following the August uprising but resumed after the BNP-led government came to power. They alleged that several groups identifying themselves as local Jubo Dal leaders became involved in collecting money.
The traders said those who refuse to pay or protest risk attacks, threats of murder or the closure of their businesses.
Illegal market takes over Shah Ali road
At Shah Ali Mazar Road in Mirpur, an illegal makeshift market stretches from Shah Ali School & College Market Shopping Center to Shah Ali Super Market, occupying roughly two-thirds of the main road.
More than 200 temporary shops selling daily necessities operate there, according to traders.
Vendors said those controlling the market collect Tk50–300 from each shop every day, depending on the type and size of the business.
Most declined to identify the collectors, citing fear of reprisals.
A small businessman alleged that people associated with a political party collect around Tk1 lakh a day from the market.
Ekram Hossain, a resident of Mirpur-4, said such a situation was unacceptable in an independent country.
He also blamed the roadside market for causing persistent traffic congestion and hardship for local residents.
Police identify 1,200 extortionists
Police have identified 1,200 alleged extortionists operating across Dhaka.
The highest numbers were recorded in Khilkhet, with 112, followed by Kalabagan with 100, Hatirjheel with 77, Mohammadpur with 59 and Badda with 57.
Adabor, Bhatara, Khilgaon, Uttara East and Pallabi are among the other areas with high numbers of identified extortionists.
Police data show that 58% of those on the list are active in these 10 areas.
Police say extortion is particularly prevalent in areas with roadside businesses, transport stands and construction projects, where multiple groups can collect money from the same area.
The police list also includes allegations of law enforcement involvement in 35 extortion incidents, with the highest number reported in the DMP’s Mirpur division.
A senior police official involved in compiling the list said extortionists operate across the capital and often use the names of political or criminal groups to collect money.
Many do not hold formal political positions, the official said, adding that some use the names of political groups to collect money from garment factories, housing developers and suppliers.
The findings point to an extortion system that extends beyond street-level collectors, with alleged links to criminal groups, political influence and weaknesses in enforcement.
Police say crackdown underway
AHM Shahadat Hossain, AIG (Media and Public Relations) at Police Headquarters, told Dhaka Tribune on Monday afternoon that police operations were continuing to arrest people on the list.
He said area-based teams were conducting the operations and that more than 150 listed extortionists and their associates had been arrested during special drives.
Many of those on the list are in hiding, he said, adding that operations would continue.
Home Minister Salahuddin Ahmed recently said organized extortionists and drug dealers would be eliminated and warned that law enforcement officials could face action if they failed to prevent crime.
He also said police were identifying extortionists as well as law enforcement personnel allegedly involved with them.
Shahadat urged victims to report extortion to their local police stations or call 999, saying police have been instructed to act on complaints.
Traders, however, say they have yet to see effective action against the networks operating in their areas.
Experts: Arrests alone will not solve problem
Crime expert and Dhaka University teacher Touhidul Haque said extortion had become a major burden for small businesses and that identifying extortionists or conducting short-term arrest drives would not be enough.
He said authorities must target the broader networks behind extortion, including armed criminals, political figures providing protection, financial beneficiaries and administrative collaborators.
Those facilitating extortion from within law enforcement or the administration should also face legal action, he said.
According to Haque, token arrests will not solve the problem unless the networks behind the collections are dismantled.
He also pointed to weaknesses in the legal process, saying suspects arrested in extortion cases can often secure bail.
The government must close such loopholes and ensure proper investigation and prosecution of extortion cases, he said.
For Dhaka’s small traders, extortion is more than an illegal payment. Every Tk50, Tk200 or Tk300 taken from a roadside vendor comes directly out of a business already operating on narrow margins.
And despite a government pledge to crack down and a police list identifying 1,200 alleged extortionists, traders say extortion remains deeply entrenched across the capital.