Bill placed in parliament to hike HBFC’s capital with provision of tougher punishment for violating rules
A bill titled "The House Building Finance Corporation Bill (Amendment) 2021" was placed in the parliament today to increase House Building Finance Corporation's authorised capital and paid-up capital, and expand its area of providing services.
The proposed law will also make punishment harsher for providing false statement while taking loan from the corporation.
The bill was sent to the respective parliamentary standing committee for further scrutiny after Finance Minister AHM Mustafa Kamal placed it in the parliament.
The parliamentary watchdog on finance ministry has been asked to submit its report before the House within 30 days.
The original law was promulgated in 1973, during Bangabandhu Sheikh Mujibur Rahman's government, through an order.
With the amendment, the authorised capital of the House Building Finance Corporation will be Tk 1,000 crore while the paid-up capital Tk 500 crore.
With the enhancement of these, the HBFC will be able to provide more services, according to the objective of the bill.
The punishment for providing false statements deliberately to take loan from the corporation has been proposed for a five-year jail term or Tk 500,000 fine or both, raising that from a two-year jail term or Tk 2,000 fine or both.
If anyone uses the name of HBFC in any advertisement or prospectus without any written permission, he or she will be sentenced to six months' jail or be fined with Tk 50,000 or both.
The punishment was six months' jail or only Tk 1,000 fine in the existing Bangladesh House Building Finance Corporation Order 1973.
In the proposed law, some words, including 'loan default', 'chairman of the corporation', and 'director' have been incorporated.
A superseding clause has been inserted in the bill to give it priority over other laws.
There will be a seven-member of Board of Directors for three years while the Chairman and the Managing Director will be appointed by the government, the bill said.