HC issues rule against loan sharking, unfair interest rates

Staff Reporter :

The High Court (HC) has issued a rule asking why the authorities’ inaction in halting usury and the high-interest lending
practices by individuals outside of banks and financial institutions should not be declared illegal.

The bench comprising Justice Md. Ashraful Kamal and Justice Kazi Walilul Islam passed this order on Tuesday.

The court directed the Chairman of the Microcredit Regulatory Authority to resolve the petition regarding the ban on usury and loan shark businesses within two months.

The court has also instructed the Finance Secretary, Home Secretary, and other relevant authorities to respond to the rule within four weeks.

Advocate Forhad Uddin Ahmed Bhuiyan represented the petitioners during the hearing.

The case stems from a petition filed by Sachindra Nath Shil, a resident of Udmaara village in Batiaghata upazila, Khulna, on February 11, at the relevant branch of the Supreme Court. After the hearing, the court issued its ruling.