The High Court on Sunday dismissed a writ petition challenging the legality of Bangladesh Bank鈥檚 decision to appoint an administrator to oversee Nagad Limited鈥檚 operations after dissolving its board of directors, which was formed under the previous Awami League government.
The bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury ruled that the petition, filed by Nagad鈥檚 independent director Md Shafayet Alam, was not maintainable as he lacked the legal standing to challenge the central bank鈥檚 decision.
Shafayet Alam鈥檚 petition questioned Bangladesh Bank鈥檚 authority to appoint an administrator for Nagad.
The Bangladesh Bank had originally approved Nagad鈥檚 operations, with its tenure extended multiple times since its launch under former prime minister Sheikh Hasina.
The central bank, however, never issued a specific licence for online operations.
After the verdict, Nagad鈥檚 lawyer, Muhammad Nawshad Zamir, told 抖阴精品 that Shafayet Alam would appeal against the decision to the Appellate Division.
Bangladesh Bank鈥檚 counsels Md Asaduzzaman, BM Elias Kochi and ASM Sazzad Haider, however, argued that Shafayet was ineligible to serve as an independent director as he did not meet the company鈥檚 Articles of Association, which require a minimum 13 per cent shareholding.
Kochi further pointed out that Shafayet held only a 5.93 per cent stake in Blue Water Company, which did not qualify him as a nominee director.
Additionally, he alleged that Shafayet was acting as an agent of the Bangladesh Post Office.
On December 18, 2024, the High Court imposed a status quo on Nagad鈥檚 internal affairs, preventing the administrator and the reconstituted board鈥攁ppointed by Bangladesh Bank鈥攆rom taking any action against the Director General of the Bangladesh Post Office.
The court also instructed key respondents, including the secretary of the posts and telecommunications ministry, the director general of the Bangladesh Post Office, the Bangladesh Bank governor, and the director of the central bank鈥檚 Payment Systems Department, to maintain the status quo until a disposal of the writ petition.
In his petition, Shafayet Alam alleged that Bangladesh Bank had failed to follow due process, including issuing a show-cause notice before assuming control of Nagad鈥檚 management.
The High Court observed that Shafayet was not entitled to a show-cause notice as he was not a legally recognised director of Nagad.
Instead, Bangladesh Bank had issued a show-cause notice to the Bangladesh Post Office, instructing it to take necessary actions about Nagad鈥檚 operations.
The court further stated that if Shafayet had any grievances, he should seek redress from the Bangladesh Post Office, rather than filing a writ petition against the central bank.
Previously, the High Court had asked the government and Bangladesh Bank to explain why the administrator鈥檚 appointment should not be declared illegal.
Nagad, a digital financial service provider, was launched by the Bangladesh Post Office on November 11, 2018, and officially began operations on March 26, 2019, coinciding with the 48th Independence Day of Bangladesh.
It started with key services such as cash-in, cash-out, money transfers, and mobile recharge.
