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High Court orders closure of unregistered microcredit businesses Microcredit
Screengrab from YouTube Bangladesh High Court

High Court orders closure of unregistered microcredit businesses

Bangladesh Live News | @banglalivenews | 27 Sep 2021, 09:46 pm

Dhaka, September 27: The High Court has directed to prepare a list of unregistered interest operators (cooperative societies and NGOs) across the country operating in the name of microcredit business. At the same time, the court directed to take action against those organizations and individuals if any irregularities were found while listing them.

The High Court also directed Bangladesh Bank to form a special committee to probe into the activities of unauthorized financial institutions and microfinance institutions. The microcredit regulatory authority has also been directed to provide a list of local lenders. The court has asked the concerned to submit a progress report on these issues within the next 45 days in compliance with the court order.

The court also issued a rule. The High Court wanted to know why the silence of the defendants in monitoring and supervising the activities of microfinance private lenders without license and approval should not be declared out of legal authority. The Finance Secretary, the Governor of Bangladesh Bank, the Executive Vice Chairman of the Microcredit Regulatory Authority and the Director General of the Department of Social Services have been asked to respond to the rule.

The court has fixed November 30 for the next hearing and order in this regard.

A virtual bench comprising Justice Abu Taher Md Saifur Rahman and Justice Zakir Hossain passed the order on Monday (September 26) on a preliminary hearing of a writ petition seeking directions to identify moneylenders at high interest rates across the country in the name of microcredit.

Barrister Syed Saidul Haque Sumon appeared for the writ petition on Monday. On the other hand, Deputy Attorney General Noor Us Sadiq represented the state.

The same virtual bench of the High Court held a hearing on September 20 on the embezzlement of funds of various institutions highlighting the condition of the people who were deceived in the hearing of the writ petition filed seeking directions to prepare the list of usurers. Later, the court fixed September 28 for the order. The court issued the order in its continuation.