HC orders immediate shutdown of unauthorised financial institutions

The High Court on Monday ordered the authorities concerned to shut down the offices of unauthorised financial and microcredit institutions immediately and to take appropriate legal actions against those, which have no valid licence.

A HC bench comprising Justice Abu Taher Md Saifur Rahman and Justice Md Zakir Hossain passed the order after holding a hearing on a writ petition filed in this regard.

The HC bench also asked the Bangladesh Bank governor to form a special committee to probe into the unauthorised microcredit business across the country. The committee has been asked to submit a report before the court within 45 days after receiving the High Court order.

If, during the investigation, the existence of unauthorised or unlicensed micro-credit cooperatives, or any economic entity is found, it is directed to immediately close the offices of those entities and take legal action in collaboration with the local administration.

Moreover, the HC asked the microcredit regulatory authorities to submit a list of names of local money lenders that have no licence and are lending money at high interest rates to the court in 45 days.

The HC bench also issued a rule asking the authorities concerned of the government to show causes why their failure to monitor and supervise the activities of unauthorised institutions should not be declared illegal.

Advocate Sayedul Haque Sumon appeared before the court on behalf of the petition while deputy attorney general Nur-us Sadik represented the state during the hearing on the petition.