High Court orders legal action against unlicensed microcredit lenders

The Bangladesh Bank has been ordered by the High Court to form a special committee to investigate the activities of unauthorized financial institutions that deal in microcredit loans. 

The committee has 45 days to submit their report from the date they get the court order.

If any unauthorized or unlicensed microcredit institutions or companies are found, the court has directed the committee to enlist the aid of local government representatives to close their offices immediately and pursue legal action against them.

In addition, the microcredit regulating authority has been given 45 days to create a list of local interest traders.

The virtual bench comprising Justice Abu Taher Md Saifur Rahman and Justice Md Zakir Hossain made the decision on Monday in response to a petition seeking to identify persons who lend money at high interest rates across the country.

At the hearing, petitioners were represented by Syed Sayedul Haque, while the state was represented by Deputy Attorney General Noor Us Sadik.