Staff correspondent:

The High Court on Sunday upheld Bangladesh Bank’s decision to appoint an administrator for the Mobile Financial Service (MFS) provider Nagad Ltd.

The court also rejected a writ petition filed by Nagad’s Managing Director Md Shafayat Alam challenging legality of the central bank’s decision.

The HC bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury delivered the verdict after holding hearing on the rule issued by this court earlier questioning the legality of the appointment.

The bench also said the writ petition is not acceptable.

On August 21 last year, the Bangladesh Bank appointed its Director Muhammad Badiuzzaman Dider as the administrator at Nagad for one year. In addition, six other central bank officials were sent to Nagad to assist the administrator.

The writ petition challenged the BB’s decision to appoint Dider, a former director of the central bank’s Chattogram office, as Nagad’s administrator following allegations of operational irregularities affecting its nine crore customers.

Shafayet, who holds a 13 percent share in Nagad, filed the petition after his directorship was terminated following the administrator’s appointment.