HC questions legality of central bank circular
The High Court yesterday questioned the legality of a Bangladesh Bank circular that allowed loan defaulters to reschedule their repayment of loans upon a down payment of just two percent of the loan amount, and to get fresh loans.
The court issued a rule asking authorities of the central bank and the government to explain in 10 days why the May 16 circular should not be declared illegal.
The HC bench of Justice JBM Hassan and Justice Md Khairul Alam came up with the rule following a writ petition filed by Human Rights and Peace for Bangladesh (HRPB). It also set July 31 to resume hearing.
Another HC bench on May 21 had issued a status quo on the circular till June 24. The court on June 24 extended the status quo for the next two months.
Following a petition by the finance ministry, the Appellate Division of the Supreme Court on July 8 stayed the HC order for two months and set a condition that loan defaulters would not be allowed to get further loans by depositing two percent down payment.
The apex court also asked the HC bench, led by Justice JBM Hassan, to hear and dispose of the petition in two months.
Talking to The Daily Star yesterday, petitioner’s lawyer advocate Manzill Murshid said the July 8 order of the Appellate Division would remain in place.
Attorney General Mahbubey Alam appeared for the state.
On February 13, HRPB moved the writ petition, based on which the HC issued a rule asking authorities to explain why their failure or inaction to stop irregularities and corruption in sanctioning loans and offering waiver of interest in the last 20 years should not be declared illegal.
Secretaries to the Cabinet Division, Prime Minister’s Office, finance ministry, financial institutions division, law ministry, Bangladesh Bank governor, and the chairmen of the National Board of Revenue and the Anti-Corruption Commission were made respondents to the rule.
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