HC orders probe into Tk 3.5b of AB Bank’s loan allegation

Staff Reporter  :
The High Court on Wednesday ordered an inquiry into an allegation of sanctioning a loan of Tk 3.5 billion to a company existing only on paper by the AB Bank Limited.
The Anti-Corruption Commission (ACC), Bangladesh Financial Intelligence Unit (BFIU) and the Criminal Investigation Department (CID) of Police have been asked to conduct the inquiry and submit their reports to the court within three months.

The High Court bench of Justice Md Nazrul Islam Talukdar and Justice Khizir Hayat passed the order on a Suo Moto move after hearing considering a published report regarding the issue.

A national Bangla daily published the report on May 24 under the banner of “bigger fraud concealing defaulted loan’s info (khelapir totyo lukiye aro boro jaliati)”.
The High Court also issued a rule asking the respondents to explain as to why their inaction to take necessary measures against the persons involved with the sanctioning of the loan should not be declared illegal.

It also wanted to know as to why the respondents should not be directed to identify the persons involved with the loan approval and to take appropriate legal action against them.
ACC Chairman, Bangladesh Bank Governor, Finance Secretary, BFIU, CID, AB Bank MD and others have been asked to comply with the rule within two weeks.

According to the published report, AB Bank recently approved a loan of Tk 3.5 billion to a company existing only on paper. Businessman Mohammad Ali Haider Ratan raised the issue by withdrawing loan money from National Bank’s Gulshan branch at night. The same person is the beneficiary of the loan of Tk 3.5 billion.

However, the BFIU has already blocked the loan approval when it came to know about the fraudulence. It also sought an explanation from the board of directors of the bank about the loan approval.

Mohammad Ali Haider Ratan received loan of Tk 5.59 billion from different banks. AB Bank loan was approved for his company “Brandshare Trading”.