Willful defaulters are going to face punishment

  • Staff Correspondent, Barta24.com, Dhaka
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Photo: Collected

Photo: Collected

Ban on foreign travel of willful defaulters, ban on trade license issue, ban on company registration with Bangladesh Securities and Exchange Commission, Registrar of Joint Stock Companies and Firms are coming. They will not receive any state award or honor.

Bangladesh Bank issued a circular on Wednesday (April 3) ordering the establishment of a willful defaulter identification unit.

বিজ্ঞাপন

In the circular sent to the managing director/chief executive officer of all financial institutions operating in the country, it is said that Bangladesh Bank can send the list of willful defaulting borrowers to the various organizations concerned against willful defaulters and ban their travel abroad, ban on trade license issue, Bangladesh Securities and If requested by the Exchange Commission, Registrar of Joint Stock Companies and Firms to take necessary measures to impose restrictions on company registration, the concerned agencies of the government will take necessary measures to fulfill the purpose of the law; A willful defaulter shall not be eligible for any State award or honor. The list of willful defaulting borrowers will be sent by Bangladesh Bank to the registration authorities of vehicles, land, houses, flats etc. In this case concerned authorities can take appropriate action under their existing laws/rules.

According to the circular, if a borrower is listed as a willful defaulter by a finance company or a bank company, in that case, the concerned borrower will not be eligible to become a director of a finance company or bank company until five years have passed after the borrower is exempted from the said list by repaying the loan. can't; If a director of a finance company or bank company is listed as a willful defaulter, his directorship will be declared vacant under the Finance Companies Act; If a person or institution is finally listed as a willful defaulting borrower and if no appeal is filed against the said listing or if the appeal is rejected by Bangladesh Bank, the concerned finance company will issue a notice to the borrower giving 2 months time to repay the full amount due to him. If the willful defaulting borrower fails to pay the amount due to him within 2 months of receiving the notice, the concerned finance company will file a criminal case against the said borrower with the approval of the board of directors.

বিজ্ঞাপন

Notwithstanding the filing of such a criminal case, the proceedings of the Money Debt Court shall not be interrupted in respect of the recovery of the related debt or advance or due; Report on willful defaulting borrowers should be presented quarterly in the Audit Committee meeting of the Finance Company. The audit committee will inform the next board meeting considering the importance of the report and related issues. In the regular or special internal audit report conducted by the finance company, the willful defaulting borrowers should be included in a separate paragraph with review and disclosed in the audited financial report.

Any interest charged or uncharged against the respective loan account of the willful defaulting borrower shall not be waived and the said account shall not be rescheduled; If a defaulting borrower is finalized as a willful defaulting borrower, the customer's loan account cannot be transferred by any other finance company or bank. The concerned borrower shall be treated as a willful defaulter until the loan taken by the willful defaulting borrower is fully recovered.