The enormous hill belongs to Abhijit Kanti Dash, the municipality's councillor of Kalaghat Shishu Poribar area under Bandarban sadar upazila.
Contractor Nurul Absar, who was picked by Bandarban municipality to renovate several roads, has been excavating the hill in broad daylight.
Locals Nur Ahmed and Uchnu Marma said Nurul is also selling at least five to six trucks of the soil around Bandarban.
When journalists visited the location, Nurul and his associates had a confrontation with them.
Later, Nurul blamed municipal Mayor Md Islam Baby for the matter.
Nurul said: “Bandarban's municipal roads are being renovated. The mayor is pressurising us to complete the construction work quickly.
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Wanton destruction of hills have been severely affecting the environment of Bandarban Dhaka Tribune
“To finish the construction work on time, we were excavating soil from anywhere we could.”
Asked about Nurul's comments, Mayor Md Islam said: “Revamping the road is the contractor's duty. From where will he manage the soil is his concern.”
Abhijit, the owner of the hill, wanted it to be levelled so that he could utilise the land.
However, according to Bangladesh Environment Conservation Act, 1995 and Building Construction Act, 1952 no hill can be razed without permission from the Department of Environment.