The High Court has constituted board of directors of People's Leasing and Financial Services Limited (PLFSL) in a move to protect the non-banking financial institution from being ruined.
A single bench of the HC comprising Justice Mohammad Khurshid Alam Sarker came up with the newly-constituted body of PLFSL on Tuesday.The development came following a petition filed by the depositors of People's Leasing and Financial Services Limited which is unable to pay back their money.
The HC decided to revive the PLFSL instead of liquidating it against the backdrop of embezzlement of money by a group led by disgraced director of International Leasing and Finance Service Ltd (ILFSL) Prashanta Kumar Halder alias PK Halder who is in Canada.
Barrister Kamal-ul-Alam, a lawyer of the Supreme Court, has been appointed chairman of PLFSL while Mohammad Jalal Uddin, former managing director of Ansar and VDP Development Bank, managing director of the organisation.
Eight members of the board are: former secretary Anwarul Islam Sikder, former district and sessions judge Hasan Shaheed Ferdous, Pubali Bank former managing director Abdul Halim Chowdhury, Brig Gen (retd) Kazi Taufiqul Islam, Nur-e-Khuda Abdul Mobin FCA, Mawla Mohammad FCA, depositors’ representative Dr Nashid Kamal and chairman of finance department of North South University Dr Nurul Kabir.
Besides, the HC issued some directives to newly-constituted board of directors, Bangladesh Bank governor, Anti-Corruption Commission and the borrowers of PLFSL to facilitate reactivation of the organisation.
The High Court has fixed August 22 for passing next order on the matter.Advocate Ehsanul Karim appeared for the depositors, Barrister Tanjib-ul Alam for Bangladesh Bank and Barrister Mezbahur Rahman for PLFSL liquidator.
The total loss of PLFSL stood at Tk 2,324 crore at the end of December 2018. Its capital shortfall stood at Tk 2,013 crore. PLFS owed Tk 798 crore to different banks and financial institutions.
In July 2019, Bangladesh Bank appointed its deputy general manager Md Asaduzzaman Khan as probationer liquidator of PLFSL.
During hearing a petition filed by Md Asaduzzaman, the HC asked for the list of borrowers who defaulted on loan of the organisation.
Out of 500 borrowers, the HC summoned 280 persons or heads of entities took Tk 5 lakh or more and failed to pay back the money.
The HC, on April 7, asked 128 persons including Prashant Kumar Halder to explain how they would refund the borrowed money. The HC also issued a travel ban on the defaulters.
However, on June 21, a petition was filed by 201 depositors seeking an order of the HC for reactivation of the PLFSL.