The High Court (HC) on Wednesday ordered the authorities concerned to keep those shares locked down for three months on charges of controlling 81 decimal 92 percent of the shares of Islami Bank Bangladesh through 24 companies affiliated with S Alam Group.
At the same time, the court issued a rule asking why the inaction of Bangladesh Bank should not be declared illegal to prevent the retention of additional shares under sections 14k and 14c of the Banking Companies Act, 1991. It also asked why necessary action would not be taken to confiscate additional shares under section 14k(3) of the Act.
After hearing a writ petition, Justice KM Kamrul Quader and Justice Md. The High Court bench of Lutfur Rahman issued the order and rule.
One of the entrepreneurs of Islami Bank, the Islamic Economic Research Bureau (IERB), filed a writ petition. The petitioner’s lawyer Mohammad Shishir Monir confirmed the matter on Friday (September 4th).
According to the law, no single family or group can hold more than ten percent of a bank’s shares under the law. The writ alleged that twenty-four companies affiliated with S Alam Group are controlling the 81th decimal 92 percent stake in Islami Bank as an institutional shareholder.
The applicant claims that there is a provision to confiscate additional shares of the law-seted limit. As part of the interim order, the High Court has directed the authorities concerned to keep the 81-decimal 92 percent stake in the name of the company in the name of the company for three months.