Investigate Tk 3,859cr loan to Bashundhara 4 days before govt fall before Hasina’s fall: HC

The High Court on Sunday directed the authorities to investigate alleged irregularities in sanctioning a Tk 3,859 crore loan to Bashundhara Group four days before the fall of the Sheikh Hasina government on August 5 amid a student-led mass uprising.

A bench of Justice Mohammad Ullah and Justice Foyej Ahmed ordered the finance secretary, cabinet secretary, National Board of Revenue chairman, Bangladesh Bank governor, Anti-Corruption Commission chairman, and the head of the Bangladesh Financial Intelligence Unit to submit a report on the investigation’s progress within four months.

The High Court passed the order responding to a public interest writ petition filed by Supreme Court lawyer Sarwar Hossain. The petition cited a Prothom Alo report published on September 15 detailing the loan approval.

The report raised concerns about special loan facilities granted to Bashundhara Group in violation of banking norms.

Sarwar Hossain, representing himself, argued that former Bangladesh Bank governor Abdur Rouf Talukder along with the chairman of National Bank Limited’s board of directors, and its managing director, approved the loan, allegedly breaching banking rules and regulations.

The court wanted to know why the failure to investigate those involved in the loan sanction should not be declared illegal and why they should not face legal action.

The Prothom Alo report noted that Bangladesh Bank had deferred Bashundhara Group’s loan repayments for two years, with the group’s debt to National Bank amounting to Tk 3,859 crore, of which Tk 3,844 crore was the principal amount.

The loan amount reportedly exceeded the ceiling by eight times.

The Bank Company Act allows a maximum of 15 per cent of the bank’s paid-up capital, equivalent to Tk 482 crore, for a single borrower with an additional 10 per cent or Tk 321 crore as loan facilities.