The Local Government Division issued an order on Thursday in this regard.
It said the action was taken against Sayeed on charges of being absent in meetings of city corporation and going abroad without permission from the ministry.
The councillor was found guilty under Section 13 (1) of the Local Government (City Corporation) Act 2009 and suspended under the Section 13 (2), the order says.
According to the order, Sayeed was absent in 13 meetings out of 18 of the DSCC and currently, he is staying abroad without the permission of the Local Government, Rural Development and Cooperatives Ministry.
It was alleged that Sayeed used to run an illegal casino at Wanderer’s Club in the capital. He fled the country following a crackdown on the illegal casino business.