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In April 2012, Ahmed reportedly denounced the US government's bounty on Lashkar-e-Taiba chief Hafiz Muhammad Saeed, calling it an insult to all Muslims and stating that "If the US can announce a reward of $10 million for the captor of Hafiz Saeed, I can announce a bounty of 10 million pounds on President Obama and his predecessor George Bush". This resulted in his temporary suspension from the party. He denied making these statements, even though the website of the university that was hosting him at the time also quotes him as saying much the same thing in its summary of the event.
Ahmed had previously been jailed for dangerous driving following an incident in which a man was killed; in March 2013, it was reported that he blamed his prison sentence on a Jewish conspiracy. He got suspended again for that one, and later resigned from the Labour party due to the controversy.
In 2020 he retired from his seat following the result of a Lords Conduct Committee investigation that concluded he exploited a member of the public who had sought his help to report an exploitive faith healer to the police, instead coercing her into a sexual relationship. In proper governmental fashion, it took a news report on the issue after she was denied an investigation to get the government to actually look into the complaints.