|
HC stays BB order on Rupali Bank loan
1/17/2005
The High Court (HC) Sunday stayed for three months Bangladesh Bank (BB) order restricting Rupali Bank Ltd to sanction new loans to borrowers and increasing lending limit to existing ones. Division bench comprising Justice M Joynul Abedin and Justice Zubaer Rahman Chowdhury issued rule upon the central bank and others to explain why the directive for signing a memorandum of understanding (MoU) should not be declared illegal. The orders came upon a writ filed by two borrowers of Rupali Bank - Uttara Paat Sangstha and J&J Essential Products Ltd - challenging the legality of restriction on sanction and extension of loan facilities. The central bank a month ago slapped restrictions on giving new loans and extension of existing facilities to streamline the banking sector that has been bedeviled by inefficiency, nepotism and corruption. Advocate Manzil Murshid appeared for the petitioners. — UNB
|