The Appellate Division on Thursday upheld a High Court order that barred the former directors of the People’s Leasing and Financial Services Limited (PLFS) from selling their assets.
The bench led by Chief Justice Sayed Mahmud Hossain also upheld the HC order on freezing the bank accounts of the former directors after rejecting a leave to appeal petition filed by former director M Moazzem Hossain.
Barrister Ajmalul Hossain, Kamrul Haque Siddique and AM Aminuddin represented the PLFS, while barrister Tanjib-Ul-Alam stood for the Bangladesh Bank.
On July 14 this year, the bench of Justice Muhammad Khurshid Alam ordered the central bank to freeze the bank accounts of five PLFS directors. The bench also asked for the appointment of Md Asaduzzaman Khan, deputy general manager of the BB’s Financial Institutions Department, as a liquidator for the PLFS.
Starting in 1997, the financial scandal of PLFS came into light in 2013-14 when some of its directors were caught in an inspection report led by the Bangladesh Bank for making fake documents worth Tk1,000 crore.
The central bank later removed five directors for their involvement in the financial scandal in 2015.