SANGSAD BHABAN, Nov 1, 2023 (BSS) - Finance Company Bill, 2023 was passed in
the Jatiya Sangsad (JS) today keeping a provision of imposing a fine of Taka
one crore as the maximum administrative punishment for violation of the law.

Law, Justice and Parliamentary Minister Anisul Huq on behalf of Finance
Minister AHM Mustafa Kamal moved the bill which was passed by voice votes in
the House with Deputy Speaker Shamsul Huq Tuku in the chair.

Opposition lawmakers Fakhrul Imam, Kazi Feroz Rashid, Mujibul Huq, Rawshan
Ara Manan, Hafiz Uddin Ahmed and Independent lawmaker Rezaul Karim Bablu
demanded for further scrutiny on the bill which was also rejected by the
voice votes.

"The new proposed law has brought changes to the Finance Institutions Act,
1993 as it (the existing law) is not that much effective," said the minister
while piloting the bill.

As per the proposed law, the existing financial institutions would become
companies but they would require neither fresh registration nor change in
their existing memorandum of associations.

He said a provision of huge fines were as administrative pecuniary
punishments in some clauses of the draft law.

"The maximum punishment is Taka one crore fine," the minister said, adding
that the criminal offence will be tried separately under penal codes.

According to the bill, no one can run a finance company without taking a
license from the Bangladesh Bank.

The bill precisely defined loan defaulters as well as fixed the ceilings for
the amount of deposited money and interest rates.

During approval of the draft law, the Cabinet made an observation for the
authorities concerned to review whether the bankruptcy issue of a company can
be solved outside the court and if the issue can be incorporated in the
proposed law, said the Cabinet Secretary.

He said now the court declares a company bankrupt. It takes time to remove
the bankruptcy-related complexities, completing all the legal procedures
following the High Court's judgment over a bankruptcy issue.