Novartis share transfer: HC questions govt’s inaction to prevent laundering

FE REPORT

The High Court has questioned the inaction and failure of the government bodies concerned and other respondents to prevent money laundering involved transferring 60 per cent shares of Novartis Bangladesh Limited.

It has issued a rule upon the respondents to explain in four weeks as to why the failure and inaction to prevent money laundering involved with the overvaluation of share price by Radiant Pharmaceuticals Limited manipulating the market real value of the shares in the acquisition of majority shares of the Novartis Bangladesh Limited should not be declared illegal.

In the rule, the HC also asked the respondents to explain as to why they should not be directed to take effective steps, including but not limited to independent investigation and legal action against the money laundering involved in the acquisition of majority shares of Novartis Bangladesh Limited by Radiant Pharmaceuticals Limited.

The finance secretary, chairman of the Anti-Corruption Commission (ACC), industries secretary, Bangladesh Bank governor, head of the Bangladesh Financial Intelligent Unit (BFIU), Registrar of Joint Stock Companies and Firms, and others have been asked to comply with the rule. 

The High Court bench of Justice Razik-Al-Jalil and Justice Tamanna Rahman Khalidi passed the order on Thursday (March 27) after hearing a writ petition filed as a public interest litigation.

Ektander Hossain Howlader, a Supreme Court advocate, filed the petition with the High Court on January 27 this year seeking the necessary order.

Lawyer Rafiul Islam appeared in the court hearing on behalf of the petitioner, while Deputy Attorney General Jamila Momtaz and Assistant Attorney General Ruhul Amin Sikder represented the state.

Alleging money laundering through the acquisition of 60 per cent or 9,75,036 Novartis' shares by Radiant Pharmaceuticals for Tk 2.30 billion, the writ sought court directives to investigate it and also asked for a stay on the share transfer.

Earlier on January 8, legal notices were served on three officials concerned, including the governor of the Bangladesh Bank (BB), urging them to stay the handing over of shares of Novartis Bangladesh.

The notice says the shares of Novartis serve the interest of Salman F Rahman, an adviser to the former Sheikh Hasina government. 

It further states that previously, the acquisition process of the shares was supposed to be done under the leadership of Salman F Rahman, who is also the Chairman of Beximco Pharmaceutical Ltd.

“But considering the changed circumstances following 5 August [ouster of the Hasina government], the process is ongoing through Radiant Pharmaceuticals Ltd, a relatively lesser-known company catering to the interests of Sheikh Hasina and her family.”

"In the absence of Salman F Rahman, Radiant Pharmaceuticals Chairman Nasser Shahrear Zahedee Mahul is currently looking after matters related to Sheikh Hasina and her family's business interests," it adds. As the respondents unheeded the notice, the petitioner filed the writ petition.

bikashju@gmail.com