Depositors express outrage at move to shut down People's Leasing
Depositors alleged that with the direct complicity of Bangladesh Bank officials, the institution was looted and pushed to collapse, and now the central bank itself has decided to shut it down.
Depositors have expressed strong outrage at the move to close People's Leasing. Bangladesh Bank has decided to shut down nine non-bank financial institutions (NBFIs) plagued by irregularities, looting, and mismanagement. Among them is People's Leasing and Financial Services Ltd.
Depositors alleged that with the direct complicity of Bangladesh Bank officials, the institution was looted and pushed to collapse, and now the central bank itself has decided to shut it down. They made this claim at a press conference held today at the National Press Club.
Uncertainty over getting their money back has already caused 35 depositors to die, depositors claimed.
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They said, "Closing a running company is unjust. If shut down, thousands of depositors will be left completely helpless. This will be a failure of Bangladesh Bank, and the full responsibility will fall on them."
Mohammad Atiqur Rahman Atiq, president and chief coordinator of the depositors' association, said that between 2015 and 2017, the then-owners and directors of People's Leasing looted thousands of crores of taka in collusion with some corrupt officials of Bangladesh Bank.
In 2019, at Bangladesh Bank's petition, the High Court sent the institution into liquidation, which halted all operations. As a result, many retired depositors dependent on investment income saw their livelihoods collapse.
In 2021, under a High Court directive, the company resumed operations and depositors gradually started recovering their funds. Following the court order, the new board of directors has so far repaid around 1,000 depositors in full, recovered about Tk200 crore in defaulted loans, and relisted the company on the stock market.
Recently, the High Court ordered four former directors to repay Tk1,400 crore. Leaders of the depositors' association expressed hope that if the money is realised by December, the remaining depositors will also receive their dues.
