Dhaka, Feb 16 (V7N) – The High Court has upheld the decision of Bangladesh Bank to appoint an administrator to Nagad, a mobile financial service provider, dismissing a rule issued regarding the legality of the appointment.
The HC bench of Justice Farah Mahbub and Justice Debashish Roy Chowdhury dismissed the rule issued on two separate writ petitions on Sunday.
Senior lawyers Jamiruddin Sircar, Mustafizur Rahman Khan and lawyers Abul Kalam Khan and Md Jamilur Rahman represented the writ petitioners.
Senior lawyer and Attorney General Mohammad Asaduzzaman, and lawyers Kamruzzaman Kachi and Saiful Islam appeared for Bangladesh Bank.
Lawyer Abul Kalam Khan Dawood who stood for the petitioners said the High Court dismissed the petition on the grounds that the petitioners had no legal standing.
When asked whether an appeal would be filed against the order, he said: “A decision would be made after consulting the petitioners.”
Bangladesh Bank's lawyer BM Elias Kachi said: "The judgment mentions that Nagad is an agent of the Post Office. Before appointing the administrator, Bangladesh Bank issued a notice to the Post Office, which responded. Besides, after inspecting Nagad’s operations, Bangladesh Bank found irregularities.”
He added: “Based on these findings, an administrator was appointed in the interest of its customers. The writ petitioners claimed that no notice was given to them. However, since Nagad is an agent of the Post Office, the petitioners could have applied there if they were aggrieved, but they did not.”
He further added: “Considering these aspects, the High Court dismissed the writ petition, validating the appointment of the administrator by Bangladesh Bank."
After the formation of the interim government, Bangladesh Bank appointed Muhammad Badiuzzaman Didar, director of the Chittagong Office of the Postal Department, as administrator for Nagad on August 21 last year for one year.
The previous board of Nagad was also dissolved.
Bangladesh Bank’s spokesperson Mejbaul Haque later informed the media that Nagad is a service of the Post Office, and Bangladesh Bank would manage it on their behalf.
Following this order, Nagad's Executive Director Safayet Alam filed a writ petition at the High Court challenging its legality.
After initial hearings, the High Court issued a rule on September 17, asking why the decision to appoint an administrator to Nagad should not be declared illegal.
The authorities concerned were asked to respond within 10 days.
During the hearings on the rule, on December 18, the same bench of the High Court issued a two-week stay on the administrator's activities.
In a similar case, another director of Nagad, Mohammad Aminul Haque, filed a separate writ petition.
After its hearing, the court issued a similar rule.
The same court dismissed that rule on Sunday.
END/MSS/AJ
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