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People’s Leasing Scam

Pay back money or go to jail, HC to loan defaulters

Published : Friday, 26 February, 2021 at 12:00 AM  Count : 272

The High Court (HC) on Thursday warned loan defaulters of People's Leasing and Financial Services Ltd (PLFSL), a non-bank financial institution, to pay the first installment or go to jail.
You must pay back the money because it was the public money as a listed organization of stock market, said the HC.
"The money of PLFS belongs to people, not to thieves and thugs. Pay the money first and then talk. Otherwise, you will be sent to jail."
The single HC bench of Justice Muhammad Khurshid Alam Sarkar said this after some loan defaulters appeared before it while hearing on a petition involving liquidation of the PLFL.
The liquidation process began after the board of PLFSL informed the central bank in April 2019 about its inability to pay back the depositors' money despite the maturity of the deposits.
Later, the Bangladesh Bank filed a petition in 2019 seeking permission to liquidate the PLFSL.
Barrister Khan Md Shamim Aziz represented the Bangladesh Bank while Barrister Mesbahur Rahman stood for liquidator Md Asaduzzaman Khan.
During the hearing on the matter, 45 out of 143 loan defaulters and their successors     were present in the court. On February 23 another 51 defaulters also appeared before the HC.
The HC said the defaulters will have to pay the due installments first and they will then get opportunity to bargain and negotiate with the liquidator of the PLFSL, but those who fail to do so will be taken into jail.
Pay the money at first and then make statements. Don't use any minister's influence to this effect, it said.
The borrowers who did not appear before the court today will be given another chance to provide explanation to the court by March 9.
If they fail to do so, a directive will be passed to arrest them, the HC warned.
The court fixed March 9 for further hearing on the matter.
On January 21, the HC summoned 280 loan defaulters, whose loan is over Tk5,00000, of the PLFS to appear before it to explain by February 23.
The court also issued a show cause asking them to explain why they would not be directed to explain their position regarding their loan borrowed from the PLFS.
On February 23, the HC reformed seven-member fact finding committee to identify those involved with irregularities and corruption in three financial institutions including the PLFS.
The fact-finding committee will have to mark the liabilities of the responsible people in this regard.

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