Loan to Bashundhara: Probe claims of rules breach by National Bank

The High Court has ordered the Anti-Corruption Commission and other authorities concerned to probe whether the National Bank gave undue privileges to Bashundhara Group regarding a loan of Tk 3,859 crore in violation of the banking rules.
The court asked the authorities to come up with a report in four months on the progress of the probe.
The order was issued to the finance and cabinet secretaries, chairman of National Board of Revenue, governor of Bangladesh Bank, chairman of Anti-Corruption Commission, Bangladesh Financial Intelligence Unit.
The HC also issued a rule asking 22 respondents to explain why the inaction of these six officials in conducting the probe should not be declared illegal.
Besides the six aforesaid officials, the other respondents to the rule are chairman of National Bank Limited; Abdur Rouf Talukder, former governor of Bangladesh Bank; managing director of National Bank Limited; managing director of Bashundhara Paper Mills Ltd; managing director of Bashundhara Multi-paper Industries; Bashundhara Industrial Headquarter; managing director of Meghna Cement Mills PLC; managing director of Bashundhara Industrial Complex Limited; Bashundhara Food and Beverage Industries Ltd; managing director of Bashundhara Oil and Gas Company Ltd; managing director of Bashundhara Multi Food Product Ltd; Ahmed Akbar Sobhan alias Shah Alam, chairman of Bashundhara Group; and his sons Sadat Sobhan, Sayem Sobhan Anvir, Sifiat Sobhan Sanvir and Safwan Sobhan.
The HC bench of Justice Mohammad Ullah and Justice Foyej Ahmed issued the order and rule on October 29 following a writ petition filed by Supreme Court lawyer Mohammad Sarwar Hossain.
Sarwar filed the writ as a public interest litigation after Prothom Alo on September 15 reported that Bashundhara Group enjoyed special privilege just four days before the Awami League government fell.
Citing the newspaper report, Sarwar said in his petition that the Bangladesh Bank and its governor extended privileges to Bashundhara Group, one of the top loan defaulter businesses of the country, so that it would not have to repay its defaulted loans in two years.
“The group got this undue privilege for his loans taken from the National Bank Limited. According to sources in Bangladesh Bank, Bashundhara’s loans with National Bank stands at Tk 3,859 crore. This direct loan provided to the business group is eight times higher than the loan ceiling applicable to them according to the loan related circulars of the Bangladesh Bank and relevant laws. Special and undue privileges were provided to Bashundhara Group while rescheduling their defaulted loan,” he stated in the petition.
He also said in the petition that the companies of Bashundhara Group availed the undue privilege in connivance with the National Bank Limited chairman, Abdur Rouf Talukder, former governor of Bangladesh Bank and managing director of National Bank Limited in a most illegal, arbitrary and discriminatory manner.
Sarwar, assisted by Salah Uddin Reagan, moved the writ petition at the hearing.