Receiver for Beximco no longer necessary: HC

The High Court (HC) yesterday said a receiver for managing the companies of Beximco Group is no longer necessary.

Considering the interests of thousands of workers and employees, the HC allowed Beximco Group to continue managing its companies on their own in strict compliance with the law.

However, the HC upheld the receiver’s actions and ordered the authorities concerned to take necessary steps against individuals or institutions responsible for sanctioning questionable loan facilities to the companies of Beximco Group.

Delivering its verdict on a writ petition, the HC ordered the Bangladesh Bank to take necessary steps to recover the defaulted and classified loans, amounting to Tk 53,000 crore, within the bounds of the law.

 

Considering the interests of thousands of workers and employees, the HC allowed Beximco Group to continue managing its companies on their own in strict compliance with the law

“…There is no doubt to find that Bangladesh Bank as well as its respective scheduled banks and financial institutions have miserably failed to perform and or observe their statutory or legal obligations towards disbursement of loan as well as realisation of the defaulted and classified loan amount from the respective companies of Beximco Group of Companies; the consequence of which shall ultimately be borne by the public in general,” the HC bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury observed.

“The appointment of receiver in the instant case has not been made within the framework of the respective statutes, rules, regulations or circulars of Bangladesh Bank,” the bench said.

The conduct of the Bangladesh Bank and all scheduled banks and financial institutions concerned in sanctioning loan facilities to Beximco Group in violation of banking rules and regulations had become questionable, it added.

The HC directed the central bank, the Bangladesh Financial Intelligence Unit (BFIU), and other relevant authorities to complete any ongoing investigation or inquiry into the matter.

If any wrongdoing is found, appropriate action must be taken in accordance with the law, said the HC.

The bench delivered the verdict after hearing the writ petition filed by Supreme Court lawyer Masood R Sobhan.

Barrister Masood R Sobhan represented himself in the petition, while Barrister Muniruzzaman appeared for the central bank and Barrister Fida M Kamal represented Beximco Group during the hearing.

Following the same writ petition, the HC on September 5 last year directed the Bangladesh Bank to appoint a receiver to manage the companies of Beximco Group and attach all their properties for six months.

The HC also ordered the central bank to recover money obtained by Salman F Rahman, founder of Beximco Pharmaceuticals Limited, from various banks and bring it back to Bangladesh from abroad. It also issued a rule to this effect.

According to Investopedia, a receiver is a person appointed as custodian of a person or entity’s property, finances, general assets, or business operations. Receivers can be appointed by courts, government regulators, or private entities.

In compliance with the HC directive, the Bangladesh Bank on November 10 appointed its Executive Director Md Ruhul Amin as receiver to Beximco Group to manage the financial affairs and assets of the troubled conglomerate.

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