The city authorities suspended all work on the project, saying proper safety measures were not taken while work was ongoing
Ali, a retired senior diplomat, will replace Tariq A Karim in New Delhi, the foreign ministry said in a media statement on Sunday.
Karim has been the Bangladesh envoy to India for the past five years.
After obtaining his MSc in Zoology from Dhaka University, Syed Muazzem Ali joined the erstwhile Pakistan Foreign Service in 1968.