SC clears way for the BB’s administrator to run Nagad

The Appellate Division of the Supreme Court yesterday cleared the way for the administrator appointed by Bangladesh Bank (BB) to continue overseeing operations at mobile financial service provider Nagad.

The apex court stayed an earlier order by its chamber judge, which had paused a High Court (HC) verdict upholding the central bank's decision to appoint an administrator for Nagad.

A five-member bench of the Appellate Division, headed by Justice Md Ashfaqul Islam, passed the order following a petition filed by BB seeking to vacate the chamber judge's stay order.

The court also directed the central bank to file a leave to appeal petition against the HC verdict and fixed July 3 for hearing.

"There is no legal bar for the administrator of Nagad, appointed by the central bank, to continue his functions following the Appellate Division order," BB lawyer BM Elias Kachee told The Daily Star.

On May 7, the chamber judge of the SC had stayed the February 16 HC verdict that upheld BB's decision to appoint an administrator at Nagad and also rejected a writ petition filed by its Director Md Shafayet Alam, challenging the legality of the central bank's move.

The chamber judge also asked the writ petitioner to move a leave to appeal petition challenging the HC verdict.

On August 21 last year, the central bank appointed its Director Muhammad Badiuzzaman Dider as the administrator at Nagad for one year.

Six other officials from the central bank were also assigned to Nagad to assist the administrator.

The BB's decision to appoint Dider, a former director of its Chattogram office, came amid allegations of operational irregularities.

The move was subsequently challenged through a writ petition.

Barrister Jamir Uddin Sircar and Barrister Muhammad Nawshad Zamir appeared for the writ petitioner.