“A board of directors will be formed to restructure it. The court will let us know who will lead the board and who else will be on it later, ”said lawyer Ahsanul Karim, who represented the financial institution’s depositors at the court hearing on Monday.
A virtual court headed by Judge Muhammad Khurshid Alam Sarkar made the decision after hearing a petition presented by 201 depositors of the besieged lender.
The petition claims that there is no legal basis for liquidating a financial institution, but the Bangladesh Bank could integrate financial institutions and, with proper management, protect the interests of depositors.
If decisions on People’s Leasing are delayed, it “will cause more damage to depositors,” the petition says.
The company’s operations were turned upside down after Proshanta Kumar Halder, former managing director of NRB Global Bank and Reliance Finance Ltd, fled overseas after embezzling Tk 35 billion in loans from several financial institutions, including People’s Leasing.
Lawyer Shamim Ahmed Mehedi filed the petition on behalf of the depositors last week.
Lawyer Tanjib-ul-Alam represented the Bank of Bangladesh and lawyer Mezbahur Rahman represented People’s Leasing probationary liquidator, Md Asaduzzaman.
