HC asks why cenbank's decision to appoint Nagad administrator not illegal
The High Court (HC) today issued a ruling asking why the Bangladesh Bank's decision to appoint an administrator for the Mobile Financial Service (MFS) Nagad should not be declared illegal.
The High Court bench of Justice Farah Mahbub and Justice Muhammad Mahbub Ul Islam issued the rule after hearing a writ petition filed by Nagad's Executive Director Md Shafayet Alam, the company's counsel Barrister Mustafizur Rahman Khan told the media.
The court asked the Bangladesh Bank governor and finance secretary and other concerned to respond to the rule within 10 days, Mustafizur said.
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Earlier on 21 August, the Bangladesh Bank appointed its Director Muhammad Badiuzzaman Dider as the administrator at Nagad for one year. In addition, six other central bank officials were sent to Nagad to assist the administrator.
The writ challenged the central bank's decision to appoint Dider, a former director of the Bangladesh Bank's Chattogram office, as Nagad's administrator following allegations of operational irregularities affecting its nine crore customers.
Md Shafayet Alam, who holds a 13% share in Nagad, filed the petition after his directorship was terminated following the administrator's appointment.
Although the High Court refrained from staying the central bank's decision, it has sought justifications for the move.
According to Nagad's counsel Mustafizur Rahman Khan, the High Court refused to stay on the activities of the administrator as it has already assumed control, and his tenure is set for one year under the Bangladesh Bank's directive.
