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PLFSL ex-directors can unfreeze accounts: HC

FE REPORT | April 01, 2020 00:00:00

The former directors of People's Leasing and Financial Services Limited (PLFSL) are getting scope to unfreeze their bank accounts by submitting a bank guarantee to the High Court (HC).

An HC bench of Justice Muhammad Khurshid Alam recently passed a series of orders to unfreeze such accounts after keeping a bank guarantee from them.

The same bench on January 22 ordered the central bank to direct all banks and financial institutions to freeze personal and business accounts of PLFSL present and past top brass.

The officials include chairmen, vice-chairmen, managing directors, deputy managing directors, directors, chief financial officers, head of the audit division, head of the sales division and head of credit division.

Later, the court brought some modifications in its order responding to the applications filed by some ex-directors to unfreeze their accounts.

The HC on March 18 allowed AKM Shahidul Islam, Uni-Global Business Limited managing director and PLFSL ex-director, to unfreeze his personal and business accounts by keeping a Tk 2.5-million guarantee.

TM Fateh Kabir, another ex-director of the institution, was also allowed to open his frozen personal and business accounts after submitting a Tk 6.3-million bank guarantee on March 19.

The court said, "Therefore, there is no impediment to releasing the application from the prohibitory and restriction order passed by the court on January 22."

Some other ex-directors also received the advantage after submitting bank guarantees to the higher court.

Earlier on February 18, SM Rezaul Karim, a former PLFSL independent director and currently a minister of the government, was allowed to unfreeze his personal and business accounts.

It is to be noted that the non-bank financial institution is now under a liquidation process as its financial health has deteriorated badly in recent years because of loan irregularities.

The Bangladesh Bank (BB) filed a petition on July 14, 2019, with the HC seeking its liquidation.

Later, the court accepted the prayer for hearing and appointed BB deputy general manager Md Asaduzzaman Khan as a provisional liquidator of the leasing firm.


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