The cabinet has approved the draft of Bangladesh House Building Finance Corporation Act, 2019, keeping punishment of up to five-year imprisonment or Tk5 lakh fine or both for violating provisions of the proposed law.
The approval came at a cabinet meeting presided over by Prime Minister Sheikh Hasina on Monday.
Providing more details, Cabinet Secretary Mohammad Shafiul Alam told reporters: “Punishment will be more stringent under the draft law than that of the Bangladesh House Building Finance Corporation Order, 1973.
“According to the 1973 order, violators would be penalized with up to two years of imprisonment or a fine not more than Tk2,000 or both. But these punishments are not adequate, so we are going to increase both the fine and prison terms in the proposed law.”
Amount of authorized capital and paid-up capital has also been increased in the draft from the existing Tk 110 crore. The authorized capital will be increased to Tk1,000 crore and the paid-up capital to Tk 500 crore in the proposed law, said the cabinet secretary.