The High Court on Tuesday ordered the Bangladesh Bank to take necessary steps for setting up a complaint box in every district and upazila so that the common people can submit their complaints about unauthorised financial institutions (FIs) and individual money lenders.
At the same time, the High Court asked the central bank to prepare a complete list of the unauthorised financial institutions and individual money lenders and to submit the list with it within two months.
The High Court bench of Justice Abu Taher Md Saifur Rahman and Justice AKM Zahirul Huq passed the order after holding a hearing on a writ petition filed in this regard.
Following the writ petition, the High Court on September 27 in 2021 asked the concerned bodies of the government to take legal action against the institutions which are dealing with financial activities including microcredit businesses across the country without any valid license or approval.
It also asked the Bangladesh Bank governor to form a special committee regarding the activities of the unauthorised financial institutions and as well as microcredit financial institutions across the country and to submit a report to the court within 45 days.
During the investigation, if the existence of any unauthorised or unlicensed financial institution or microcredit financial institution is found, it is directed to the respondents to immediately shut down the offices of those entities at once and take legal action against the responsible persons with the help of the local administration, the court also said in its order.
Complying with the High Court order, the Bangladesh Bank has formed a high-powered special committee to probe into the allegations against the unauthorised and unregistered financial institutions and as well as microcredit financial institutions across the country.
In a compliance report, Bangladesh Bank has also stated that it has issued letters to the deputy commissioners (DCs) and superintendents of police (SPs) of the 64 districts to prepare the list of the unauthorised financial institutions and individual money lenders.
After issuing the letter, the central bank has received some list from some of the DCs and SPs in the meantime and it will take legal action against those financial institutions immediately, also read the compliance report, adding that a total of 19 teams are working to probe into the allegations against the unauthorised financial institutions.
Some unregistered financial institutions are continuing their activities by taking advantage of filing lawsuits and writ petitions in the court. The High Court has fixed April 20 for setting up a date for hearing on the writ petitions filed by those institutions who are taking advantage.
In the earlier order, the High Court also issued a ruling upon the concerned bodies of the government to explain in four weeks why their failure to monitor and supervise the activities of the unauthorised financial institutions as well as the microcredit financial institutions should not be declared illegal.
The finance secretary, Bangladesh Bank governor, Microcredit Regulatory Authority’s executive vice-chairman and director-general of the social welfare department have been asked to comply with the ruling.
The writ petition was filed with the High Court seeking its direction upon the concerned bodies of the government to take necessary steps for imposing a ban on the informal high-interest money lending activities across the country.
Barrister Syed Sayedul Haque Suman, a Supreme Court lawyer, filed the petition with the High Court on September 7 this year as public interest litigation.
Barrister Suman himself took part in the hearing in support of his petition, while Barrister Munirujjaman Munir appeared for the Bangladesh Bank and deputy attorney general Barrister Wayesh Al Haruni represented the state.
During the hearing, Barrister Suman said only 746 institutions have a license from the Microcredit Regulatory Authority to run microcredit functions, while thousands of institutions are conducting microcredit functions across the country without any license.
