The High Court (HC) has issued a rule asking why the central bank’s gazette on the special scheme for loan defaulters should not be declared illegal.
The bench of Justice JBM Hassan and Justice Md Khairul Alam on Tuesday (Jul 23) issued the rule asking why allowing defaulters to pay 2 percent interest and then rescheduling the loan for 10 years should not be declared illegal.
The court also fixed Jul 31 as the next hearing date.
On May 16, Bangladesh Bank’s Banking Regulations and Policy Department issued the guideline on loan rescheduling and one-time exit facility.
Under the new guideline, the defaulters will be allowed regularize their bad debts by paying 2 percent down payment in addition to writing off unearned interest and freezing the cases against them in court.
Following the issuance of the gazette, Advocate Manzil Murshid on behalf of Human Rights and Peace for Bangladesh lodged a petition with the HC seeking a freeze on it.
The court, after hearing the writ ordered a freeze on the gazette and formation of an independent commission.
It also ordered a list to be made of the loan defaulters and money launderers in the last 20 years.