High Court questions legality of informal lending practices
The High Court issued a rule on Tuesday asking the authorities concerned to explain why they should not stop non-institutional or informal financing businesses, such as "Sud" or "Dadon," at the individual level and declare them illegal.
A division bench of the High Court, consisting of Justice Md Ashraful Kamal and Justice Kazi Waliul Islam, passed the order after hearing a writ petition filed by Sochindra Nath Shil from Sonadanga, Khulna.
The High Court bench directed officials, including the finance secretary and home secretary, to respond to the rule within the next four weeks.
The court also instructed the chairman of the Microcredit Regulatory Authority to dispose of the petition within the next two months.
Advocate Farhad Uddin Ahmed Bhuiyan moved the plea before the court.