Gulam Rabbani :
The High Court on Sunday ordered the Bangladesh Bank to formulate a nine-member committee with experts in banking sector to find out the corruptions and irregularities in sanctioning the loans and recovery them by the banks.
The committee will recommend their suggestions to the Bangladesh Bank so that the central bank can take necessary measures in removing the irregularities.
The court said to avail the new loans by the defaulters they have to follow the master circular of the Bangladesh Bank issued in 2012.
At the same time the court ordered the Bangladesh Bank to issue a circular giving 90 days more to apply for rescheduling loans and further loans. The High Court bench of Justice J B M Hassan and Justice Md Khairul Alam delivered the verdict after dispose of a rule issued earlier over a Bangladesh Bank circular that allowed defaulters to reschedule their loans with a repayment period for 10 years and get further loans.
The court said, “We find that due to high interest rate the borrowers facing hardship. So the banks should reduce the interest rate from double digit.”
In the observations the court said, “Money is blood in economy. So smooth money circulation in necessary for a sustainable economy. Blood circulation is controlled by heart, while money circulation controlled by banks. Therefore, banks are the heart on money circulation.”
Attorney General Mahbubey Alam took part in the hearing on behalf of the Finance Ministry, Advocate Shah Monjurul Hoque appeared for Bangladesh Association of Bankers, Advocate Ajmalul Hossain, Barrister Shameem Khaled and Advocate Munirujjaman stood for the Bangladesh Bank, Advocate Khurshid Alam Khan for Anti-Corruption Commission while Advocate Manzill Murshid took part on behalf of writ petitioner organization, Human Rights and Peace for Bangladesh (HRPB).
Earlier on July 23, 2019, the same court issued a rule asking the authorities concerned of the Bangladesh Bank and the government to explain in 10 days as to why the circular issued on May 16 this year giving privilege to the loan defaulters should not be declared illegal.
Following a writ petition filed by Human Rights and Peace for Bangladesh, the HC bench of Justice F R M Nazmul Ahasan and Justice K M Kamrul Kader on May 21 issued a status quo till June 24 on the central bank’s May 16 circular that allowed defaulters to reschedule their defaulted loans upon a down payment of just 2 percent of the total loan amount up to 10 years, and to get further loans.
On June 24, the HC extended its May 21 order for next two months.
After hearing an appeal petition filed by the Finance Ministry the Chamber judge of the Appellate Division of the SC, Justice Md Nuruzzaman, on July 3 stayed the HC order till July 8 and sent it to the SC full bench.
On July 8, the Supreme Court extended for two months its stay on the High Court order that halted the Bangladesh Bank circular.
The SC also said in its order that anyone opting for the opportunity will not be allowed to borrow funds from another bank in two months.
Besides, the court also asked the HC bench led by Justice J B M Hassan to hear and dispose of the petition filed in this regard in two months.
Later on August 29 this year, the HC bench of Justice J B M Hassan and Justice Md Khairul Alam ordered the Bangladesh Bank and other banks not to allow the loan defaulters to take out fresh credit till October 20 and on that day the court extended the time for next one month or till dispose of the writ petition filed with the High Court in this regard.
