Unprecedented order

HC summons 280 defaulters of PLFS

22 January 2021

Staff Reporter :
The High Court on Thursday summoned 280 loan defaulters from People's Leasing and Financial Services (PLFS).
They have to explain before the court on 23 February as to how they will make the repayments.
The bench of Justice Muhammad Khurshid Alam Sarkar came up with the order after going through a list submitted by PLFS, containing names of the loan defaulters from the institution.
The HC had asked the authorities concerned to submit a list of borrowers of People's Leasing in November last year. In compliance with the order, a list of 500 borrowers-both individuals and institutions-was submitted to the court on 23 November.
The individuals and institutions who took loans amounting to Tk 1,655 crore have been included in the list, said PLFS lawyer Mejbahur Rahman.
He also said the individuals and institutions had defaulted on loans of Tk 5 lakh or more taken from the non-bank financial institution.
"The PLFS is on the process of winding up. In this situation, the HC's company bench had sought the list of the loan defaulters from PLFS in November last year and accordingly a list of 500 borrowers was submitted to the HC bench.
After going through the list, the HC bench on Thursday issued a show cause notice on the 280 loan defaulters and summoned them to appear before the court on February 23," Mejbahur Rahman added.
People's Leasing has been counting losses since 2015. The company has not been able to recover money from the defaulters, neither has it been able to return funds to the depositors.   
Earlier in July 2019, the Bangladesh Bank filed a case with the HC for the liquidation of People's Leasing. After the hearing on the case, the court issued an order to do so.
The depositors of People's Leasing on last week demanded their money back within 15 days as many of them are going through unbearable hardship.
"About 6,000 individuals are leading miserable lives due to the failure of the central bank to prevent the laundering of funds by PK Halder," said Mohammad Atiqur Rahman Atiq, convenor and chief coordinator of PLFS individual and small depositors' council.
One depositor of the non-bank financial institution has died of heart attack as a result of the stress brought on by the uncertainty about getting his money back from PLFS.
"If our money is not returned in 15 days, we woullay siege to the central bank," Atiq said during a demonstration in front of the PLFS headquarters at Motijheel in the capital. The depositors went on to seek the prime minister's intervention in getting back their deposits from PLFS.
At the end of September 2018, PLFS's deposits stood at Tk 2,086 crore.

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