Appellate Division halts HC order to appoint receiver for Beximco Pharma

The Appellate Division has stayed the order issued by the High Court to appoint a custodian, officially termed as a receiver, at Beximco Pharmaceutical Limited.

However, the High Court order appointing a receiver for the other companies under the troubled Beximco Group remains in place.

The court also asked to settle the rule on receiver appointment by the High Court bench led by Justice Farah Mahbub in two weeks.

After hearing the Beximco appeal on Tuesday, a three-strong bench headed by Justice Md Ashfaqul Islam issued the order.

Advocate Fida M Kamal and Mostafizur Rahman Khan represented Beximco while Advocate Moniruzzaman was the legal counsel for Bangladesh Bank. Advocate Masud R Sobhan represented the petitioner.

Advocate Masood R Sobhan filed a petition seeking the financial loan information for Beximco Pharmaceuticals Ltd and other companies of the Beximco Group for the last 25 years. The bench of Justice AKM Asaduzzaman and Justice Muhammad Mahbub Ul Islam passed the order with a rule after hearing the petition.

On Sept 5, the court ordered the appointment of a receiver to oversee the entities associated with the Beximco Group and confiscate all the assets of the conglomerate. Bangladesh Bank was asked to implement the directives.

The court also asked for the recovery of money taken by the group’s owner Salman F Rahman from various banks and to bring back money laundered by him abroad. The central bank had been asked to submit a report within four weeks upon implementation of the order.

Beximco appealed to the Chamber Court at the Appellate Division seeking a stay against the High Court order. The justice at the Chamber Court issued a ‘no order’ and forwarded the appeal to the Appellate Division for a full hearing.

After the change in the political scenario, Beximco Group owner Salman F Rahman was arrested and jailed. The Criminal Investigation Department (CID) filed 17 cases naming Salman and 27 other high-ups in the conglomerate. They were blamed for laundering around Tk 10 billion.

The group is blamed for taking out loans worth Tk 334.7 billion and laundering them abroad. The financial crime unit of CID has been investigating the issue.

Meanwhile, Bangladesh Bank has appointed a ‘receiver’ or caretaker for other companies of the Beximco Group.

Bangladesh Bank Director Ruhul Amin has been appointed as the receiver.