The High Court on Thursday questioned the legality of Dr M Mosharraf Hossain's appointment as chairman of Insurance Development and Regulatory Authority (Idra) and asked the authorities to explain why he should not be removed from his post.
Mosharraf, along with his wife, is holding directorship in two companies, which is a disqualification for the post at the insurance regulator as depicted in the Idra Act 2010.
The court also asked the secretary, additional secretary, and joint secretary of the Financial Institutions Division to come with their replies within four weeks.
The High Court bench of Justice M Enayetur Rahim and Md Mostafizur Rahman issued the rule upon a writ petition by Abu Saleh Mohammad Amin Mehedi, an investor.
Barrister Mustafizur Rahman Khan and Barrister Karishma Jahan moved for the petitioner at the hearing.
According to the writ petition, Dr M Mosharraf Hossain founded a company – Loves and Live Organics Ltd – in May 2017. Gulshan Valley Agro Industries Ltd, his other company, was founded in January 2018.
He is serving the companies as their director and managing director, while his wife Jannatul Mawa is a director at both the firms.
Mosharraf concealed his managing directorship in the two companies while joining the Idra as its member in April 2018 and also while the finance ministry appointed him the chairman of the regulator, complained the writ petitioner.
Earlier, he was embroiled in bribery allegations by a life insurer – Delta Life Insurance Company Ltd – in December 2020.