HC summons PLFS’ ex-chair for transferring IPO shares to personal account

The High Court today summoned former board chairman of People's Leasing and Financial Services Limited (PLFS), a non-bank financial institution, Captain M Moazzam Hossain, and two of his family members directing them to appear before it for explaining their role over transferring PLFS' initial public offering (IPO) shares to their personal accounts.

The other two people who have been ordered to appear before the HC are -- Farzana Moazzam and Eashan-E-Moazzam.

The court also summoned the chiefs of both organisations, E Securities Limited and Great Walls Land Properties Limited before it on the same day for their explanation on this issue.

PLFS' shares were also transferred to the accounts of the two companies headed by Captain M Moazzam Hossain.

The HC also issued a show cause notice upon them to explain as to why they should not be directed to transfer the shares held by them to PLFS' account.

The HC bench of Justice Muhammad Khurshid Alam Sarkar came up with the order after a hearing on a petition filed by the provisional liquidator of the People's Leasing and Financial Services Limited, Md Asaduzzaman Khan.

Lawyer Mejbahur Rahman appeared for the provisional liquidator, while lawyer Kazi Ershadul Alam represented the Bangladesh Bank during hearing on the petition.

Mejbahur Rahman told The Daily Star that People's Leasing and Financial Services Limited paid Tk 6.25 crore to buy IPO shares of SS Steel Limited in 2015.

SS Steel got approval for IPO shares in 2018 and that year the company transferred 31.3 lakh shares worth Tk 10 each to the account of PLFS.

But 31.2 lakh more shares obtained from the company were deposited in personal accounts of Captain M Moazzam, his two family members, and E Securities Limited and Great Walls Land Properties Limited.

Md Asaduzzaman Khan on December 9 last year filed a petition with the HC seeking its directives for regaining the shares and to summon them for explaining their role in this regard, he said.

Bangladesh Bank appointed Md Asaduzzaman Khan as the provisional liquidator of PLFS on July 14 in 2019 in line with the HC order.