the writs the banks are unable to realize the money while due to stay order from the higher court the loan defaulters are also getting new loans. It is learnt from officials of banking sector that these tactics of getting long-term exemption from repayment of loans and side-by-side taking loans afresh by filing writ petitions is being followed by renowned business groups to frauds. An establishment reputed for construction and export of sea-going ships, after getting stay verdict, has taken huge loans from another bank. Besides, Sonali bank took initiative in last February-March to recover, through putting the companies to auction, the money distributed in the name of various companies on fake documents in Hall-Mark scam. Then filing writ petition with the High Court with the help of an eminent lawyer Hall-Mark got prohibition order on putting some companies to auction. As a result Sonali bank is failing totally to recover the money of forgery revealed three years ago. Finance Minister Abul Maal Abdul Muhith sent a letter requesting Law Minister Advocate Anisul Haque and Attorney General Mahbubey Alam to constitute a special bench to expedite disposal of the writ petitions. It is learnt that number of non-disposed petitions related to loan during the period from 2001 to 2014 stood at 1,517. The writs arose out of various loan dispute to the tune of Tk 8, 569.87 crore. The number of writs related to Credit Information Bureau (CIB) is 521 involving Tk 20, 469.16 crore. Number of writs concerning other kinds of loan is 474 arose out of dispute over Tk 980.63 crore. The Finance Minister said if the writs are disposed off, discipline will be restored to credit sector. The culture of loan default will shrink. The financial sector will be strengthened and stable. It will ensure an atmosphere which is needed for production-friendly investment. Managing Director (MD) of Sonali Bank and CEO told Kaler Kantho that the clients who become loan defaulters taking small amount of money from banks, try to pay back the loan. But some person who become loan defaulter after taking large amount of money, go to the apex court. They obtain the court’s order asking the authorities concerned not to declare them loan defaulter before they are sued in the Artha Rin Adalat. The matter remains sub-judice for years. The volume of classified loan keeps increasing. As 20 top loan defaulters resorted to writ petition, the matter of realising around Tk 1,000 crore is caught in legal dilemma. The letter sent by Finance Minister to the Law Minister says that currently Bangladesh Bank and 15 state-run banks and financial organisations are functioning. The letter aimed at calling for constitution of a special bench to expedite disposal of the cases and analogous hearing on the matters. The Finance Minister further said the state-owned banks and financial organisations are hard hit by increasing number of loan defaulters. The loan recipients are deliberately going to the court instead of paying back the money. As the classified loans cannot be realised, the process of giving fresh loan for development projects is being hampered. On the other hand, the persons who do not pay back loan to one bank, are being eligible for fresh loan from other banks by avoiding inclusion of their names in the list of loan defaulters. On August 19, the Finance Minister sent the latter to Law Minister. The FM said to the best of his knowledge, there is no separate bench to hear writs petitions arising out of the Artha Rin. Asked about the matter, Attorney General said “I am yet to receive the letter of the Finance Minister. Necessary steps will be taken aster after getting the letter.” Sources at Bank and Financial Institutions Division (BFID) said after enactment of Artha Rin Adalat Ain in 2003, the cases were disposed off by lower courts within short span of time. Most of the judgments which went in favour of banks are being stuck in legal dilemma as the defeated parties are filing appeal with the apex court. The loan recipients appoint renowned and senior lawyers while the counsels for banks are weaker comparatively. A move to sell some companies of big loan defaulter Hall-Mark was foiled as the company appointed senior lawyer Barrister Rafiqul Haque. Sonali Bank has no strong panel lawyer to counter the opposite party. Section 12 of the Artha Rin Adalat Ain says if a loan recipient fails to pay the money, he should be labelled as “loan defaulter” and a legal notice will be published in the newspaper asking him to pay back the money. If he does not respond, an advertisement will be published for selling his properties in auction. If he refrains from responding, a case will be filed against him. If the accused person does not appear before the court within one month of filing the case, the court should issue an order for selling his mortgaged properties. In most of the occasions, the banks cannot fulfill precondition to term anybody as “loan defaulter.” As such, the amount of classified loan is being colossal gradually. Courtesy: Kaler Kantho
Tuesday, September 9, 2014
Tk 30,020cr stuck due to writs:Daily Sun
the writs the banks are unable to realize the money while due to stay order from the higher court the loan defaulters are also getting new loans. It is learnt from officials of banking sector that these tactics of getting long-term exemption from repayment of loans and side-by-side taking loans afresh by filing writ petitions is being followed by renowned business groups to frauds. An establishment reputed for construction and export of sea-going ships, after getting stay verdict, has taken huge loans from another bank. Besides, Sonali bank took initiative in last February-March to recover, through putting the companies to auction, the money distributed in the name of various companies on fake documents in Hall-Mark scam. Then filing writ petition with the High Court with the help of an eminent lawyer Hall-Mark got prohibition order on putting some companies to auction. As a result Sonali bank is failing totally to recover the money of forgery revealed three years ago. Finance Minister Abul Maal Abdul Muhith sent a letter requesting Law Minister Advocate Anisul Haque and Attorney General Mahbubey Alam to constitute a special bench to expedite disposal of the writ petitions. It is learnt that number of non-disposed petitions related to loan during the period from 2001 to 2014 stood at 1,517. The writs arose out of various loan dispute to the tune of Tk 8, 569.87 crore. The number of writs related to Credit Information Bureau (CIB) is 521 involving Tk 20, 469.16 crore. Number of writs concerning other kinds of loan is 474 arose out of dispute over Tk 980.63 crore. The Finance Minister said if the writs are disposed off, discipline will be restored to credit sector. The culture of loan default will shrink. The financial sector will be strengthened and stable. It will ensure an atmosphere which is needed for production-friendly investment. Managing Director (MD) of Sonali Bank and CEO told Kaler Kantho that the clients who become loan defaulters taking small amount of money from banks, try to pay back the loan. But some person who become loan defaulter after taking large amount of money, go to the apex court. They obtain the court’s order asking the authorities concerned not to declare them loan defaulter before they are sued in the Artha Rin Adalat. The matter remains sub-judice for years. The volume of classified loan keeps increasing. As 20 top loan defaulters resorted to writ petition, the matter of realising around Tk 1,000 crore is caught in legal dilemma. The letter sent by Finance Minister to the Law Minister says that currently Bangladesh Bank and 15 state-run banks and financial organisations are functioning. The letter aimed at calling for constitution of a special bench to expedite disposal of the cases and analogous hearing on the matters. The Finance Minister further said the state-owned banks and financial organisations are hard hit by increasing number of loan defaulters. The loan recipients are deliberately going to the court instead of paying back the money. As the classified loans cannot be realised, the process of giving fresh loan for development projects is being hampered. On the other hand, the persons who do not pay back loan to one bank, are being eligible for fresh loan from other banks by avoiding inclusion of their names in the list of loan defaulters. On August 19, the Finance Minister sent the latter to Law Minister. The FM said to the best of his knowledge, there is no separate bench to hear writs petitions arising out of the Artha Rin. Asked about the matter, Attorney General said “I am yet to receive the letter of the Finance Minister. Necessary steps will be taken aster after getting the letter.” Sources at Bank and Financial Institutions Division (BFID) said after enactment of Artha Rin Adalat Ain in 2003, the cases were disposed off by lower courts within short span of time. Most of the judgments which went in favour of banks are being stuck in legal dilemma as the defeated parties are filing appeal with the apex court. The loan recipients appoint renowned and senior lawyers while the counsels for banks are weaker comparatively. A move to sell some companies of big loan defaulter Hall-Mark was foiled as the company appointed senior lawyer Barrister Rafiqul Haque. Sonali Bank has no strong panel lawyer to counter the opposite party. Section 12 of the Artha Rin Adalat Ain says if a loan recipient fails to pay the money, he should be labelled as “loan defaulter” and a legal notice will be published in the newspaper asking him to pay back the money. If he does not respond, an advertisement will be published for selling his properties in auction. If he refrains from responding, a case will be filed against him. If the accused person does not appear before the court within one month of filing the case, the court should issue an order for selling his mortgaged properties. In most of the occasions, the banks cannot fulfill precondition to term anybody as “loan defaulter.” As such, the amount of classified loan is being colossal gradually. Courtesy: Kaler Kantho
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