BB moves to fix land tussle of People's Leasing

The central bank yesterday hosted a tripartite meeting to resolve the land tussle of scam-hit People's Leasing and Financial Services or PLFS, a non-bank financial institution.

Shah Alam, general manager of the department of financial institutions and markets of Bangladesh Bank, presided over the meeting that was attended by Uzzal Kumar Nandi, current chairman of PLFS, and Moazzam Hossain, former chairman.

"We want them to resolve the crisis (land) as soon as possible," said a BB official who was present at the meeting.

The present and former chairmen of PLFS said the meeting was an "unofficial" event. The BB first detected gross financial irregularities in PLFS in September 2014.

It found insider lending by some directors of PLFS and suggested the NBFI remove the directors and file cases against them to recover the money.

Some directors of PLFS embezzled about Tk 400 crore using family members and people and representatives of companies in which they have interests, according to the BB report.

Though five directors were removed from the board, no case was filed to recover the funds they misappropriated between 2002 and 2014.

Of the irregularities, some directors took about Tk 124 crore in the name of buying a piece of land in the capital's Green Road. But PLFS is yet to get the land.

Hossain, the former chairman of PLFS, said the central bank has asked them to settle the land fiasco, which is owned by eight persons. "When I came to know that some directors took the money in their and some other fictitious names, I stepped in to recover the funds. Then I got the power of attorney on the land to help my company get back the money."

Now, the current chairman of the company wants Hossain to hand over the power of attorney on the land to him.

"I cannot hand over the power of attorney, but I can register the land in the name of PLFS," he said.

Nandi, the present chairman of PLFS, said the BB remains steadfast to its previous decision of filing cases against the directors responsible for the irregularities.

He declined to comment on his demand for the transfer of power of attorney on the land from the previous chairman.