The High Court has imposed a status quo on the internal affairs of Nagad Limited, barring its administrator and management board, appointed by the Bangladesh Bank, from acting against the director general of the Bangladesh Post Office.
The court ordered Nagad and the respondents 鈥� posts and telecommunications ministry鈥� secretary, Bangladesh Post Office鈥檚 director general, Bangladesh Bank鈥檚 governor and BB payment systems department鈥檚 director 鈥� to maintain the status quo until further hearing scheduled for January 2, 2025.
The court鈥檚 decision was tied to a letter seeking the postal authority鈥檚 cooperation in providing Nagad鈥檚 passwords to the administrator.
The Bangladesh Bank justified its intervention by alleging potential fund misappropriation by Nagad鈥檚 dissolved board of directors.
Nagad, a leading mobile financial service provider, operates under an agreement with the Bangladesh Post Office.
The bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury issued the order on December 18 while hearing a writ petition filed by Nagad鈥檚 independent director Md Shafayet Alam challenging the legality of appointing an administrator to the company.
The court scheduled January 2, 2025 for further hearing on a previously issued rule that asked the government and Bangladesh Bank to explain why the appointment of the administrator should not be deemed illegal.
The administrator, Muhammad Badiuzzaman Didar, a director of the Bangladesh Bank, was appointed on August 21 by the central bank, which dissolved Nagad鈥檚 previous board and reconstituted a new one with six assistants.
The central bank cited alleged violations of the Payment and Settlement Systems Act, 2024, as the basis for its decision.
In his petition, Shafayet alleged that the Bangladesh Bank had failed to comply with legal procedures, including issuing a show-cause notice to Nagad, before appointing the administrator.
Asked about the High Court鈥檚 status quo order, Badiuzzaman told 抖阴精品 on Saturday that he was unsure about the contents of the November 26 letter sent to the Bangladesh Post Office.
On the prospect of filing an appeal, he stated that the central bank would decide on it, as it had appointed him to oversee the Nagad鈥檚 operations.
The administrator reportedly issued the letter to the director general of the Bangladesh Post Office, requesting Nagad鈥檚 passwords to have control over Nagad鈥檚 fund and prevent any unauthorised fund transfers.
The appointment was part of broader investigations into alleged financial irregularities at Nagad, which was formed under the Awami League government before it was toppled by a student-led uprising on August 5.
Nagad鈥檚 lawyers Muhammad Nawshad Zamir and Md Abul Kalam Khan Dawood argued that the administrator鈥檚 appointment and subsequent actions were flawed.
Bangladesh Bank鈥檚 lawyer Saiful Islam opposed the High Court鈥檚 status quo order during the hearing.
