Finance seeks home ministry help to execute 1,025 loan-default arrest warrants

Financial Institutions Division (FID) finally seeks Home Ministry's intervention for executing arrest warrants in 1,025 long-pending loan-default cases that have trapped huge sums of money, sources say.

The warrants for arrest of the 'wilful defaulters' have been issued by Money Loan Courts (Artharin Adalat), which remained on the backburner for years.

These cases were filed by eight departments and agencies under the FID, but "due to the non-enforcement of the arrest warrants recovery of default loans is delayed", the division under the finance ministry said in a letter sent to the Home Ministry Wednesday.

The FID also sent details of the cases with the letters to help enforce the arrest warrants.

Officials said Home Ministry's intervention was sought following a decision made in a meeting last month with FID secretary Nazma Mobarek in the chair.

The meeting had discussed the fate of hundreds of cases pending with the Money Loan Court for years, and finding remedies without further delay.

The meeting had asked the banks, insurance companies, financial institutions, and regulatory bodies under the FID to send a list of non-executed arrest warrants.

This was part of FID's special drive for speedy settlement of top 100 cases of state-owned banks, insurance companies, financial institutions, and regulatory bodies involving some Tk 380 billion, officials said.

These cases have been stuck in the money courts for years which the FID now wants to settle "as early as possible through heightened efforts" to recover the money.

In the top 100 cases Sadharan Bima Corporation (SBC) has 10 cases involving Tk 37.19 billion, Janata Bank's 10 cases have involvement of Tk 151.51 billion, Sonali Bank's 10 cases have involvement of Tk 56.76 billion, Agrani Bank's 10 cases have involvement of Tk 39.79 billion, and Bangladesh Krishi Bank's 10 cases have involvement of Tk 15.75 billion.

Also, Rupali Bank has 10 cases on the list of top 100 which involve Tk 37.47 billion, Investment Corporation of Bangladesh has eight cases involving Tk 8.59 billion, the Basic Bank has 10 cases involving Tk 23.99 billion, the Bangladesh Development Bank has 10 cases involving Tk 8.75 billion, Bangladesh Securities and Exchange Commission has two cases having involvement of Tk 838 million, and the Rajshahi Krishi Unnayan Bank has 10 cases involving Tk 2.93 billion.

Sources say the FID meeting also discussed the measures that can be taken for speedy disposal of the cases by creating inter-ministerial link, involving attorney-general office, involving the deputy commissioners in the case of land-related disputes, among others.

According to a senior finance division official, the meeting also decided that an officer of a bank will remain present at the court during the hearing of the cases and will monitor whether the bank's lawyer is taking part properly in the hearing.

The FID will hold a meeting in presence of the Attorney-General and representatives of state-owned banks, insurance companies, financial institutions, and regulatory bodies to find ways to stop filing multiple writ petitions by the borrowers to delay the publication of auction notices and filibuster the proceedings of the loan cases.

"Also, the banks and financial institutions have been asked to send a list of assets sold through auctions but their mutation could not be completed. The FID will seek assistance of deputy commissioners in resolving the disputes," the official said.

The heads of state-owned banks, insurance companies, financial institutions, and regulatory bodies have been asked to hold meeting on pending loans every month and send the updates to the division.

A senior FID official told the FE many cases are not settled in time for a lack of proper monitoring and effective steps alongside other factors.

"We want to be more vigilant now to get the cases settled and money recovered," the official said, preferring not to be quoted by name.

syful-islam@outlook.com