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The High Court (HC) has declared that the Bangladesh Bank's (BB) step to appoint an administrator to manage mobile financial service provider Nagad is legal.
The court also rejected two writ petitions challenging the legality of appointment of the administrator and his activities as the petitions are not maintainable.
The BB has appointed the administrator following due process of law, said the HC, adding that Nagad is an agent institution under the Bangladesh Postal Department.
The HC bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury delivered the verdict after hearing a rule issued earlier by the bench questioning the legality of the BB's decision.
"The HC verdict has mentioned that Nagad is an agent of Bangladesh Postal Department and the BB rightly appointed the administrator," lawyer BM Elias Kochi, who represented the BB, told the FE.
"The Bangladesh Bank issued a show-cause notice to the postal department before appointing administrator at Nagad. Apart from this, the BB also found irregularities in the functions of Nagad."
Md Jamilur Rahman who acted for one of the writ petitioners told the FE that the HC turned down the petitions as the petitioners do not have sufficient shares in the organisation to file a petition.
On 21 August last year, the BB appointed its Director Muhammad Badiuzzaman Didar as the administrator.