Logo

Tuesday, December 3, 2019

HC rules over issuing 2pc down payment facility for NBFIs

Staff Reporter :
The High Court on Monday issued a rule upon the concerned bodies of the government to explain in four weeks as to why the inaction and failure to publish similar type of circular like BRPD Circular No. 5 dated May 16, 2019, that allowed defaulters to reschedule their defaulted loans upon a down payment of just two percent of the total loan for the non-banking financial institutions should not be declared illegal.
In the rule, the High Court also wanted to know as to why the respondents should not be directed to publish similar type of circular like BRPD Circular No. 5 for the borrowers of the non-banking financial institutions.
Bangladesh Bank (BB), BB Governor, General Manager of the Department of Financial Institutions and Markets (DFIM), General Manager of Banking Regulation and Policy Department of BB and Managing Director of Phoenix Finance and Investment Limited have been made respondents in the rule.
The HC Bench of Justice J B M Hassan and Justice Md Khairul Alam passed the order after hearing on a writ petition filed a by one Md Younus Patwary, a borrower of a non-banking finance institution, Phoenix Finance and Investment Limited.
Advocate Polash Chandra Roy and Advocate Md Razu Howlader Palash appeared in the court on behalf of the writ petitioner, while Deputy Attorney General Masud Ahmed stood for the State.
The petitioner on September 5 and September 12 this year served a letter and a legal notice to the respondents requesting them to issue a direction upon the non banking financial institutions to publish a similar circular that of BRPD within seven days of receipt of the notice. But the respondents paid no heed thereto. Then the petitioner on November 7 filed the writ petition challenging the inaction failure of the respondents to issue a similar circular.