PLFSL's loan defaulters must pay back the money: High Court

The High Court today said loan defaulters of People's Leasing and Financial Services Ltd (PLFSL), a non-bank financial institution, must pay back the money in installments.

"Pay the money at first and then make statements. Don't use any minister's influence to this effect," the HC bench of Justice Muhammad Khurshid Alam Sarkar said while hearing of a petition involving liquidation of PLFSL.

The HC bench said the defaulters will have to pay the due installments first and they will then get opportunity to bargain and negotiate with the liquidator of PLFSL, but those who fail to do so will be taken into custody.

The defaulters have taken huge amount of money from PLFSL while its depositors are roaming on the street without any meals, the court observed.

The HC bench made the observations during the hearing on a petition filed by Bangladesh Bank in 2019 seeking permission to liquidate PLFSL.

The liquidation process began after the board of PLFSL informed the central bank in April 2019 about its inability to pay back the depositors' money despite the maturity of the deposits.

During the court proceedings, 45 of 143 people who defaulted on loans from PLFSL, the beleaguered NBFI, appeared before the HC bench today in line with its January 21 order.

The borrowers who did not appear before the court today will be given another chance to provide explanation to the court by March 9.

If they fail to do so, a directive will be passed to arrest them, Justice Muhammad Khurshid Alam Sarkar warned.

The court fixed March 9 for further hearing on the matter.