• Tuesday, Jan 31, 2023
  • Last Update : 10:24 am

Peoples Leasing recovers only Tk 30cr from defaulters

  • Published at 04:37 pm March 20th, 2021

Defaulted loans of the NBFI stood at Tk 1,900 crore as of December last year

People’s Leasing and Financial Services (PLFS) has received only Tk 30 crore from defaulters, a year and nine months since the government approved liquidating the ailing non-bank financial institution (NBFI).

The defaulters of PLFS have provided the amount to the liquidator appointed by the High Court in mid-July of 2019.

“We received about Tk 30 crore from the defaulters since July 2019,” PLFS liquidator Md Asaduzzaman Khan said.

It is not possible to disburse the money to the depositors until a larger amount is recovered, he added.  

The total outstanding loans of PLFS were Tk 1,131 crore as of June 2018, which became defaulted as some of its former directors and other borrowers took out the money in the name of loans.

Defaulted loans of the NBFI stood at Tk 1,900 crore with interest as of December last year, according to an audited report by the central bank.

The defaulters of PLFS did not return the money for a long time, but the High Court recently summoned them and ordered them to return the money to the liquidator, said an official of the Bangladesh Bank (BB) directly involved in the liquidation process.

As a result, some of the defaulters are returning the money to the liquidator, he added.

The High Court on January 21 summoned 280 loan defaulters of PLFS and asked for an explanation from them on why they were not returning the money they had taken out as loans from the institution.

Then on March 17, former PLFS director Arefin Shamsul Alamin returned Tk 8.50 crore to the liquidator of PLFS.

Some other defaulters have promised to return the money as soon as possible, BB officials said.

In July 2019, the Bangladesh Financial Intelligence Unit (BFIU) ordered freezing all bank accounts and shares in the name of the nine directors of PLFS, including Alamin, who were fired owing to major irregularities. Besides, the High Court has also ordered a travel ban on them.

The total amount of deposits of PLFS stand at about Tk 2,500 crore, as per the audited report. But it is still uncertain if the depositors will get back their money.

A total of 20 officials, including former PLFS officials, are involved in the liquidation process. The liquidator spends Tk 11 lakh every month to liquidate the institution.

On June 26, 2019, the finance ministry issued a directive that allowed the Bangladesh Bank to go for liquidation of PLFS due to the company’s failure to pay back depositors’ money.

It was the first liquidation in Bangladesh’s financial sector in line with the Financial Institutions Act, 1993.

PLFS is one of the four NBFIs from which rogue banker Proshanta Kumar Halder, also known as PK Halder, swindled at least Tk 3,500 crore.

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail