Unauthorized microcredit firms must be shut

The High Court on Monday directed the government to shut down the offices of unauthorised financial and microcredit institutions immediately and to take appropriate legal actions against those.

In response to a writ petition, the court also ordered Bangladesh Bank to form a special committee to probe into the activities of such unauthorised financial and microcredit institutions and submit a report to the court within 45 days after receiving the copy of the order.

Moreover, the HC asked the microcredit regulatory authorities to submit a list of names of local money lenders that have no license and are lending money at high interest rates to the court in 45 days.

At the same time, the court issued a rule asking the authorities concerned of the government to show causes why their failure to monitor and supervise the activities of unauthorised institutions should not be declared illegal.

The HC bench of Justice Abu Taher Md Saifur Rahman and Justice Md Zakir Hossain issued the order and rule after hearing a writ petition that sought its directive on the government to ban informal moneylending business across the country.  

Supreme Court lawyer Syed Sayedul Haque Suman, on September 7, submitted the petition as a public interest litigation to the HC -- also challenging the failure and inaction of the respondents regarding informal moneylenders from lending money with exorbitant interest rates.

In the writ petition, he mentioned the secretaries concerned of the ministries of finance, home, law and social welfare, governor of Bangladesh Bank, inspector general of police, deputy commissioners and superintendents of police of all 64 districts of the country as respondents.