Or at least that's how a Bengali friend explained it to me. That's the meaning implied in this post to soc.culture.bengali , which refers to Priyanka Vadehra's Bengali stalker:
Although the action of the cops were very unjust, seems that the Mitra dude has a big "alur dosh"..I've also come across the Bengali slang term aloobaaz, used for a flirt or a randy guy. Must derive from the same meaning of alu.
I'm sure there are other connotations to the phrase though. Looking for citations, I came across this forum where alur dosh is defined as a 'flaw in the character'.
I guess you could see it that way. Though I wonder, is this an oblique way of referring to impotence/homosexuality, implying it's all a matter of faulty equipment? Over at soc.culture.bangladesh, an American visitor's queries about how to join the local gay scene receive the blunt response, 'Go to Chittagong and use the word "Gandu" or say that you have "ALUR-DOSH", ok!!!'