Don’t wind up, but restructure it

The High Court has decided that People’s Leasing and Financial Services Ltd must be restructured, not liquidated. 

“A board will be formed to restructure it. The court will let us know who will lead the board and who else will be on it at a later time,” said Advocate Ahsanul Karim, who represented the depositors of the financial institution at the court hearing on Monday.

A virtual court bench led by Justice Muhammad KhurshidAlam Sarkar made the decision after hearing a petition put forward by 201 depositors of the beleaguered lender.

The petition claims there is no legal basis to wind up a financial institution, but Bangladesh Bank could integrate the financial institutions and, through proper management, protect the interests of depositors.

If decisions relating to People’s Leasing are delayed it will “cause further damage to depositors”, the petition said.

The company’s operations were thrown into disarray after Proshanta Kumar Halder, former managing director of NRB Global Bank and Reliance Finance Ltd, fled abroad after embezzling Tk 35 billion in loans from several financial institutions, including People’s Leasing.

Advocate Shamim Ahmed Mehedi filed the petition on behalf of the depositors last week.

Advocate Tanjib-ul-Alam represented Bangladesh Bank, and Advocate Mezbahur Rahman represented People’s Leasing probational liquidator MdAsaduzzaman.