HC asks why inaction of govt bodies over loan shark business not illegal

The High Court today (11 March) issued a rule asking why the inaction of the concerned government bodies in preventing and monitoring unauthorised microfinance institutions, cooperative societies, high-interest transactions at individual level, including dowry business, should not be declared illegal.

The finance secretary, home secretary, governor of Bangladesh Bank, chairman of Microcredit Regulatory Authority, inspector general of Police, commissioner of Khulna Metropolitan Police, deputy commissioner of Khulna, Sonadanga upazila nirbahi officer and Sonadanga officer-in-charge have been asked to respond to the rule within four weeks.

The HC bench of Justice Md Ashraful Kamal and Justice Kazi Waliul Islam issued the rule after the initial hearing of a writ petition filed by a resident of Khulna.

At the same time, it sought to know why the inaction or failure to dispose of the application made to the chairman of the Microcredit Regulatory Authority in this regard would not be illegal, Advocate Farhad Uddin Ahmed Bhuiyan said.

In its order, the court directed the chairman to dispose of the application regarding the closure of interest and loan sharking business sought in the writ within next two months.

The writ petition was filed in the court by Sachindra Nath Shil of Batiaghata, Khulna. 

Around 2013 or 2014, his wife took a loan of two lakh taka from a person. 

She had to pay high interest on that loan each month. 

In this situation, on 2 May 2023, he filed a petition with the chairman of the Microcredit Regulatory Authority to "protect himself from fraud and harassment cases by taking legal action against illegal high-interest traders". 

When the matter was not resolved, he approached the HC.