Reconstruct People’s Leasing to come back the money
The swindled depositors of People's Leasing and Financial Services (PLFS) yesterday demanded the central bank proceed to return their money by reconstructing the business.
The Individual and Small Depositors' Council of the non-bank lender, a platform that has been agitating for more than a year to recuperate their funds from PLFS, presented a human chain in the capital's Motijheel.
The forum later submitted a memorandum to the central bank governor as well.
Up to 6,000 depositors of PLFS are now in a dire strait because of the ongoing liquidation procedure for the NBFI, the platform said at a press conference following the human chain.
"The depositors repeatedly communicated with the central bank but didn't get back the amount of money," said Mohammad Atiqur Rahman Atiq, chief coordinator of the platform.
Even though some senior officials of the central bank have been monitoring PLFS since 2015, some plunderers siphoned off large amounts of money from the NBFI, he said. The central bank did not take any punitive measure against the scamsters, Atiq added.
Individuals and businesses deposited Tk 2,036.22 crore at the NBFI. Of the deposits, a big amount has been plundered, according to a central bank report.
Prashanta Kumar Halder, a former managing director of Reliance Finance and NRB Global Bank, swindled a lot more than Tk 3,500 crore from four NBFIs, including PLFS. Some former directors of the NBFI were also involved.
Against the background, the central bank put on the High Court to liquidate the NBFI. The court accepted the central bank's plea and appointed a liquidator.
Liquidation of PLFS means closing its procedures permanently and Bangladesh Bank, with the court's permission, will need actions to stay liabilities by selling off its assets.
Some business groups have recently requested the finance ministry so they can reconstruct PLFS. The ministry has sought legal opinions from the central bank to the end.
Bangladesh Bank Governor Fazle Kabir told the depositors that the central bank had already suggested the finance ministry reconstruct the company, said Samia Binte Mahbub, joint convener of the platform.
"We give a one-month ultimatum to take initiatives to come back to the depositors' money. If steps aren't taken, we will get a tough movement," Samia said.
The problems of PLFS commenced in 2013-14, when a few of its directors made off with an increase of than Tk 1,000 crore by way of submitting fake documents, according to a central bank inspection report.
In 2015, the central bank removed five directors for his or her involvement in the financial scandal. Nonetheless, it was not enough. Since that time the NBFI has been in an unpredictable manner.
By May 31 last year, retail investors held 68 % of the NBFI's stock listed on the Dhaka STOCK MARKET and they stand to reduce about Tk 193.52 crore -- and institutional investors Tk 25.75 crore -- if the liquidation undergoes.
Some 15 banks and NBFIs have Tk 850 crore stuck in PLFS. The trading of the stock has been suspended since July this past year.
In the event of liquidation, external creditors are paid first and then the depositors, debenture holders, and preferential shareholders for the reason that sequence.
