Corruption laws in Bangladesh

by Tahmidur Remura Wahid | Feb 16, 2023 | 2023, Law

Corruption laws in Bangladesh and Anti-Bribery Laws

Corruption has always been a major concern for Bangladesh, as it has a direct impact on the country's economy and development. Bangladesh has certainly been successful in reducing the level of corruption over the past few years as a result of its efforts to prevent corruption by implementing numerous stringent laws.

A corruption or bribery allegation is one of the quickest ways to tarnish a company's reputation. While corporations conducting business in Bangladesh have their own anti-corruption and anti-bribery policies and compliance programs, an evaluation of Bangladesh's anti-corruption and anti-bribery laws is of utmost importance. The purpose of this paper is to provide an overview of the legal and regulatory framework in effect in Bangladesh.

Bangladesh's applicable anti-corruption and anti-bribery statutes

The Prevention of Corruption Act of 1947 (PCA 1947) was the very first special law to be implemented in Bangladesh to combat bribery and corruption. The Bangladesh Anti-Corruption Act of 1974 ("BAC 1974") was subsequently enacted, establishing the Bureau of Anti-Corruption to combat and control bribery and other forms of corruption. BAC 1974 was repealed and replaced by the Anti-Corruption Commission Act of 2004 (ACCA 2004).

The Anti-Corruption Commission was established by the Anti-Corruption Act of 2004, and the Bureau of Anti-Corruption established under the Anti-Corruption Act of 1974 was dissolved as a result. However, notwithstanding anything stated in any other law, the Penal Code 1860 ("PC 1860") also covers a number of offenses that are directly or indirectly related to corruption and bribery and are therefore subject to the Act. In addition, the Government has enacted the Anti-Money-Laundering Act of 2012 and various other laws to combat corruption and bribery-related offenses.

Definition of corruption and bribery within Bangladesh's jurisdiction

Corruption

In neither ACCA 2004 nor PC 1860 is a comprehensive definition of corruption provided. Instead of providing a general definition, section 2(E) of the ACCA 2004 referred to certain offenses listed in the ACCA 2004 schedule and stated that they were to be considered corruption offenses. According to the schedule, the following offenses are defined:

• Offenses under sections 161 (Public servant taking gratification other than legal remuneration in respect of an official act), 162 (Taking gratification in order, by corrupt or illegal means, to influence public servant), 163 (Taking gratification for exercise of personal influence with public servant), 164 (Punishment for abetment by public servant of offences defined by sections 162 or 163), 165 (Public servant obtaining valuable thing, without consideration, from persuader),
• Offenses under sections 420 (Cheating and dishonestly inducing delivery of property), 467 (Forgery of valuable security, will, etc.), 468 (Forgery for the purpose of cheating), 471 (Using as genuine a forged document), and 477 (Fraudulent cancellation, destruction, etc., of will, authority to adopt, or valuable security) if such offenses involve public property or are committed by government employees, employees of banking institutions, or employees of insurance
• Infractions outlined in the Prevention of Corruption Act of 1947.
• Infractions listed in the Money Laundering Prevention Act of 2012
• All the offenses listed above in connection with and in relation to the offenses listed in Sections 109 (Punishment of abetment if the act abetted is committed as a result and where no express provision is made for its punishment), 120B (Punishment of criminal conspiracy), and 511 (Punishment for attempting to commit offenses punishable by life imprisonment or imprisonment) of the PC 1860.

In addition, the PC 1860 lacked a definition of corruption and instead defined "wrongful gain."

According to PC 1860, wrongful gain is the unlawful acquisition of property by a person who is not legally entitled to it. On the basis of this definition, violations of sections 161-169, 171, 217-218 and 409, as well as sections 420, 467, 468, 471 and 477, if such violations involve public property or if such violations are committed by government employees or employees of banking institutions or employees of financial institutions while performing official duties, fall within the scope of the common corruption offenses.

Bribery

The PC 1860 provides a comprehensive outline of what acts may constitute bribery.

According to section 23 of the Criminal Code of 1860, bribery is committed by anyone who gives a gratification with the intent of inducing or attempting to induce another person to exercise an electoral right, or accepts a gratification as a reward for exercising such a right, or for inducing or attempting to induce another person to exercise such a right.

Whoever commits the crime of bribery shall be punished by imprisonment of either kind for a term that may not exceed one year, a fine, or both. However, it has also been stipulated that bribery by gift shall only be punished by a fine.

Punishment under the Criminal Code of 1860

If a public servant accepts, obtains, or attempts to obtain any gratification other than legal remuneration as a motive or reward for doing any official act, or for showing favor or disfavor to any person, or for rendering any service or disservice to any person, this shall be considered an offense, and the public servant shall be punished with imprisonment of either description for a term that may not exceed three years, or with fine, or with both.

According to said PC 1860, the term 'gratification' is not limited to monetary or monetary-estimable gratifications. In addition, "legal remuneration" is not limited to remuneration that a public servant can legally demand, but includes all remuneration that his employing authority permits him to accept.

Similarly, taking gratification to influence a public servant, taking gratification for exercising personal influence with a public servant, obtaining valuable things by public servant from person involved in proceeding or business transacted by such public servant, disobeying law or framing an incorrect document by public servant with intent to cause injury to any person or public servant unlawfully engaging in trade or purchasing or bidding for property or any accomplice(s) to s.

In addition, whoever accepts or attempts to obtain any gratification for himself or any other person, or any restitution of property, in exchange for the concealment of an offence under his/her screening of any person from legal punishment for any offence, shall, if the offence is punishable with death, be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to a fine; and if the offence is punishable with life imprisonment, be punished.

The same type of punishment has been imposed on the individual who provides the money, benefit, or satisfaction.

The Prevention of Corruption Act's scope

The PCA 1947 provides neither a definition nor identifies the criteria for what constitutes corruption or bribery. However, the PCA 1947 has designated certain offenses as "criminal misconduct" and outlined their maximum penalties.

The offenses designated as criminal misconduct under the PCA 1947 are identical to those listed in Section 161-165 of the PC 1860, as stated above. However, the maximum punishment prescribed by PCA 1947 is greater than the maximum punishment specified by Penal Code 1860.

For instance, the maximum punishment for committing an offense under section 161 of the PC 1860 is three years in prison, a fine, or both; however, the maximum punishment for committing a similar offense under section 5(1) of the PCA 1947 is seven years in prison, a fine, or both. As the PCA 1947 is a specialized law, however, the punishment prescribed by said act shall take precedence over others.

Implications of the 2004 Anti-Corruption Commission Act

Establishment of the Commission

The ACCA 2004 focuses primarily on the composition and duties of the Commission. The Commission shall have the authority, among other things, to inquire and investigate corruption-related offences, to file and conduct cases under this Act based on its own inquiries and investigations, to inquire into any allegation of corruption on its own initiative or upon an application filed by an aggrieved person or by any person on his/her behalf, and to perform any other work deemed necessary for the prevention of corruption, etc.

The authority to investigate and arrest

The Commission shall have the authority to summon witnesses, ensure their appearance, and question them under oath, to discover and present any document, to take testimony under oath, to issue warrants for the interrogation of witnesses and the examination of documents, and to deal with any other matter necessary to achieve the law's goals and objectives.

In addition, the Commission may request information from any person in relation to any inquiry or investigation, and any such person is required to provide the information at his disposal.

However, the ACCA 2004 makes no provision for the resolution of possible conflicts arising from official secrets, legal and professional privilege, or banking privilege. Furthermore, the ACCA 2004 fails to state under what circumstances such privileged/protected documents will be subject to disclosure to the Commission or what safeguards will be provided for such documents when they are produced for examination by the Commission.

In order to conduct an investigation, the Commission may authorize a subordinate officer of the Commission to investigate corruption with the authority of a police station's officer in charge.

Moreover, notwithstanding any other provision of the aforementioned ACCA 2004, if any officer empowered by the Commission has justifiable reasons to believe that a person in his/her name or in the name of others is the owner or in possession of moveable or immovable property that is not compatible with his/her known and declared sources of income, the officer may arrest that person, subject to court permission.

However, the statute does not specify the circumstances under which such a person may be arrested, nor its purpose or duration.

Declaration of attributes

If the Commission is satisfied based on its own information and necessary investigation that any person or any other person on his behalf is in possession or has obtained ownership of property not consistent with his legal sources of income, then the Commission shall, through a written order, require that person to submit a statement of assets and liabilities in the manner determined by the Commission and to furnish any other information specified in that order.

If any person, after receiving such an order, fails to submit a written statement or provide the requested information, or if that person submits a written statement or provides information that is false or fictitious, or if there are sufficient grounds to doubt their veracity, or if that person submits any book, account, record, declaration, return, or document, or if that person gives a statement that is false or fictitious, or if there are sufficient grounds to doubt its veracity,

Possession of property in proximity to the identified sources of income

If a public official is found to be in possession of property or liquid assets that he should not have received by law or that are inconsistent with the known sources of his income, then such illegal possession of assets shall be considered a corruption offense, and if proven guilty, the public official may be punished with imprisonment for a minimum of three (3) years and a maximum of ten (10) years, as well as a fine of up to ten thousand (10,000) BDT.

In addition, if it is proven during the trial of charges that the accused person in his own name or any other person on his/her behalf has obtained ownership or is in possession of moveable or immovable property inconsistent with his/her known sources of income, the court shall presume that the accused person is guilty of the charges, and unless the person rebuts that presumption in court, the punishment meted out on the basis of this presumption shall not be unlawful.

Amendments to the Anti-Corruption Commission Act of 2016

In 2016, the Bangladeshi government enacted the Anti-Corruption Commission (Amendment) Act 2016. According to the 2016 Amendment Act, Sections 408 (Criminal breach of trust by clerk or servant), 420 (Cheating and dishonestly inducing delivery of property), 462A (Penalty for negligent conduct of bank officers and employees), 462B (Penalty for defrauding banking company), 466 (Forgery of record of Court or of public register, etc.), 467 (Forgery of valuable security, will, etc.),468 (Forgery

Corruption and laundering of funds

The Money Laundering Act, 2012 ("MLA 2012") criminalizes the illegal transfer of assets derived from "predicate offenses" from Bangladesh to any other country or vice versa, as well as the conversion of such assets with the intent to conceal the source of the earnings. In accordance with the MLA 2012, both individuals and corporations can be held accountable for bribery.

A person who violates the MLA 2012 is subject to imprisonment for a term of at least 4 (four) years and no more than 12 (twelve) years, as well as a fine equivalent to twice the value of the property involved in the offense or taka 10 (ten) lacks, whichever is greater. Nonetheless, if an entity violates the MLA 2012, it will be subject to a fine of not less than twice the value of the property or taka 20 lacs, whichever is greater, and its registration may be revoked.

The proper implementation of anti-corruption and anti-bribery laws will depend largely on the Commission's role. On paper, the Commission has been granted extensive authority to combat corruption with minimal interference and obstruction. In the past, political influence has played a significant role in manipulating the Commission to meet its needs. Therefore, an impartial and independent Commission is required to eradicate corruption in Bangladesh.

The 'Anti Corruption Commission (Amendment) Bill 2013', which was passed on 10 November 2013 and includes a new provision requiring prior government approval to file corruption cases against public servants, is one of the loopholes in this war on corruption.

The amendment proposed a new provision in section 32 of the ACC (Anti-Corruption Commission) Act of 2004, which would require the commission to follow Rule 197 of the Criminal Procedure Code (CrPC) when prosecuting a judge, magistrate, or public servant.

Rule 197 of the CrPC states that when a judge within the meaning of section 19 of the Penal Code, a magistrate, or a public servant who is not removable from his office except by or with the sanction of the government is accused of any offence alleged to have been committed by him while acting or purporting to act in the discharge of his official duty, no court shall take cognizance of such an offense without the prior sanction of the government.

In January 2014, however, the Honourable High Court of Bangladesh ruled that the most recent amendment was unconstitutional because it limited the authority of the ACC. A HC (High Court) division bench struck down the relevant section 32 (A) of the ACC (Amendment) Act of 2013 in response to a writ petition.

The Bangladeshi government passed the Anti-Corruption Commission (Amendment) Act in 2016. According to the Amendment Act of 2016, Section 408, 420, 462A, 462B, 466,467,468, 479, 471 and 477A of the Penal Code 1860 shall not be triable under Section 28 of the ACC Act 2004 except in cases where the alleged property is a government property, or the alleged person is a government official while discharging his official duties, bank-employees or employers, employees or employers of any financial institution.

According to the amendment, any accusations under the above-mentioned sections of the Penal Code, except in cases where the alleged property is government property or the alleged person is a government official while discharging his official duties, bank employees or employers, or employees or employers of any financial institution while discharging his official duties, shall be dealt with in accordance with standard procedure.

The Government Servant (Conduct) Rules, in addition to the ACCA 2004, the Code of Criminal Procedure, the Prevention of Corruption Act, the Penal Code, and the Money Laundering Prevention Act, play significant roles in the fight against corruption.

The Bangladeshi law firm Tahmidur Rahman Remura Wahid and its litigation department

Tahmidur Rahman Remura Wahid is an all-encompassing law firm. One of our primary areas of practice is anti-corruption law. We have a team of seasoned attorneys with extensive experience in corruption, bribery, and corporate criminal law.

We have advised and collaborated with the World Bank and IFC on the publication of multiple reports on the anti-corruption and bribery laws of Bangladesh. For various projects, we have assisted foreign law firms in conducting research on Bangladeshi anti-corruption and bribery laws (i.e. overseas corruption project of the Clifford Chance LLP).

We have represented a number of corporations, individuals, and government/public organizations in Anti-corruption Commission (ACC) proceedings involving anti-corruption and corporate criminal activity.

In addition, we have represented various corporate clients in corporate criminal proceedings before the Company Bench of the High Court Division, the Labour Court and Appeal Tribunal, and other courts of competent jurisdiction.

Our foreign clients include the portfolio of American Express, Associated British Foods, Baker Hughes Incorporated, Bank of America, Bank of New York Mellon, Barclays Bank PLC, BG International Limited, BP America Inc, Cerberus Capital, Citi Bank, Credit Suisse, Fidelity, Goldman Sachs & Co, JP Morgan, MasterCard International, McGraw Hill Financial Inc., Guggenheim Partners, Morgan Stanley, Royal Bank of Scotland, UBS, Wells Fargo & Company.

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Leasing business in Bangladesh

by Tahmidur Remura Wahid | Feb 15, 2023 | 2023, Law

Leasing Business in Bangladesh and Corporate Finance law

A leasing business model involves a company purchasing a product and then leasing it to a customer for a periodic fee. The seller transfers ownership of the item to the lessor, who is a financier who allows a buyer (the lessee) to use the item for a set period of time. Finally, the buyer has the option to purchase the item at the current market price. This agreement allows the seller to dispose of the item, the financier to profit from it, and the buyer to use it while avoiding total ownership costs.

Recognising the leasing business model

Companies that use the leasing business model sell ongoing access to a product or service for a set period of time.

Typically, three parties are involved in the model:

The seller is the owner of the product or service who trades ownership of the item for payment to a lessor. It should be noted that once the contractual agreement has expired, the seller may or may not retake possession of the item.
The buyer (lessee) is the entity that bargains for access to the product or service in exchange for a periodic payment to the lessor. When the lease expires, the buyer may have the option of purchasing the item at the current market price.
The financier (lessor) is a third-party who enters into an agreement with the lessee and gives it temporary possession of the item. In essence, the lessor acts as a middleman or facilitator.

Where does the leasing business model manifest itself?

The leasing business model is most common in transactions involving the exchange of valuable physical goods, such as:

Vehicles used in commercial and industrial fleets, such as passenger vans, buses, box trucks, tractors, trailers, and delivery vans.

The leasing revenue model and leasing arrangements are as follows:

The leasing model typically involves three parties: the seller, the buyer (lessee), and the financier (lessor).
Ownership of an item (usually equipment) is transferred from the seller to the lessor in exchange for payment. The lessee then enters into a contract with the lessor to use the item in exchange for a monthly fee. When the leasing contract expires, the seller may or may not reclaim ownership of the item.

Industries that are suitable for leasing arrangements:

Leasing arrangements are most common in transactions involving the exchange of expensive physical goods. Leasing arrangements for the use of equipment are common in the clean technology and medical device markets.

Goods compatible with leasing contracts:

Capital equipment, medical diagnostic equipment and devices, manufacturing equipment, and physical infrastructure are examples of "big-ticket items" that can generate income through leasing arrangements.

In the leasing revenue model, the following customer relationships exist:

Leasing agreements, due to their length, foster ongoing relationships between sellers and lessors. Along with the leasing agreement, there is often a service agreement that requires the seller to provide support to the lessor for the duration of the contract.

Considerations for marketing:

Leased equipment sellers rely heavily on relationship-building and providing excellent customer service. Because contracts are typically for a long period of time, repeat sales to the same customer, often a large health-care, industrial, or energy network, are critical.

Leasing's operational implications:

Quality control is critical because leasing opportunities can only be successful with equipment that retains residual value and has proven reliability and durability over time.

Implications for strategy and finance:

Leasing revenues can assist the seller in meeting the need for early customers and early revenues, but leasing comes at the expense of the seller's full revenue potential because revenues are split between the seller and the lessor.

Metrics of importance:

When working with leasing revenue, salespeople must concentrate on generating repeat sales in the form of lease renewals or expanded leasing arrangements. The cost of financing is also important to consider, because leasing technology typically necessitates the participation of a financial backer.

The leasing model's advantages and disadvantages:

Leasing is an effective market expansion strategy because it allows the sale of expensive items to customers who do not want to take the risk of an outright purchase or cannot afford to pay a large upfront sum. However, because of the high transaction and processing costs associated with leasing, it is only appropriate for high-value items. Leasing agreements can also be complicated, requiring that all parties understand their ownership and payment obligations when a leasing contract is terminated or broken.

Manufacturing and industrial plant equipment -

In industries known for high item costs, leasing arrangements for stamping and forming machinery, welders, conveyor systems, and factory infrastructure or floor space may be in place.
Exhaust hoods, tables, seating, point-of-sale (POS) systems, and stoves are examples of restaurant and hospitality equipment.
Lasers, X-ray machines, CT scanners, and even surgical tables are examples of medical and laboratory equipment.
Municipal equipment - To cut costs, many local councils and authorities lease equipment. Police cars, garbage trucks, and street sweepers are among the items.

Overview of legal entities in Bangladesh

*However, if you want to hire a foreign employee, you need to make an inward remittance of US$ 50,000 beforehand. 

Requirements for company registration in Bangladesh

Allowed foreign ownership

Bangladesh is extremely receptive to foreign ownership, permitting up to 100 percent foreign ownership in the majority of sectors. In certain sectors, however, government approval is required, and a few sectors restrict both domestic and foreign investment.

Similarly, other benefits include the right to purchase land and property in the name of the company, tax incentives, etc. 

Minimum capital requirement

In Bangladesh, there is no official minimum capital requirement. Because of this, $1 is considered the minimum required capital contribution. To employ foreign workers, however, investors must transfer at least $50,000.

Types of legal entities available in Bangladesh

#1 Private Limited Company

Numerous businesses in Bangladesh are registered as limited liability companies (PLC). The liability of Bangladeshi limited liability companies is limited to the shareholders' capital contributions, and they can be wholly foreign-owned.

Any individual over the age of 18 may register a company. In addition, the law stipulates a minimum of two shareholders and a maximum of fifty, as well as two directors. In addition, keep in mind that you can form a joint venture with a local entity to share the benefits and reduce the risks.

#2 Public Limited Company

In contrast, a public limited company can issue shares to the general public and is typically listed on a stock exchange.

A public limited company must have at least seven members, three directors, and there is no limit on the number of shareholders. Its shareholders may be any legal entity or individual over the age of 18 who is qualified under Bangladeshi law.

It can solicit donations from the public. In addition to the Companies Act of 1994, it must also adhere to the Securities and Exchange Commission Act of 1993.

The step-by-step process of Leasing company registration in Bangladesh

The average estimated timeline of full registration in Bangladesh is 14- 28 days.

Step 1: Name clearance

First, The Registrar of Joint Stock Companies and Firms must approve your company's name (RJSC).

Step 2: Drafting of required documents

The second step is to draft the Article of Association (AoA) and the Memorandum of Association (MoA). As part of the RSJC's compliance requirements, you must include this form in the drafting process.

Step 3: Opening of bank account

If you plan to hire foreign employees, you must open a bank account in the proposed name of the company and make an inward remittance of at least US$ 50,000. Emerhub can help you establish the bank account.

Step 4:  Submission of documents to the RSJC

This step entails submitting all required documents to the RJSC and paying the registration fees. During the standard processing time, you can also access RSJC for the incorporation certificate.

Step 5: Post-registration compliance

You now have the certificate of incorporation, Articles of Association (AoA), and Memorandum of Association (MoA), and your Bangladeshi company is newly registered.

You also need to proceed to some additional licenses and registrations: 

• Trade License
• Tax Identification Number (TIN) 
• VAT Registration Certificate
• Fire Certificate
• Environmental Clearance Certificate

The benefits of the leasing business model

Let's look at some of the benefits of the leasing business model for the seller, lessee, and lessor.

Seller

Early revenue -

Leasing can assist the seller in meeting an early revenue requirement, even if some revenue must be shared with the lessee.
Relationship building - Because many leasing agreements are for long periods of time, the seller has time to develop a long-term and loyal relationship with the buyer.

Lessee

Affordability is the most obvious benefit for a purchaser. Many buyers are unwilling to take the risk of owning an asset outright, while others simply cannot afford the high upfront cost. The leasing business model allows the buyer to pay in smaller monthly installments that can be planned for ahead of time.
Continuous upgrades - Businesses that rely on cutting-edge technology can easily upgrade when their current lease expires. This means they will never be forced to use an obsolete model.
Lessor

Increased sales -

Third-party lease financing can assist product manufacturers in increasing their sales. In these circumstances, the lessor has a stronger negotiating position with the manufacturer.
Tax advantages - As the asset's owner, the lessor can claim various tax advantages such as depreciation and investment allowance to reduce their liabilities.

Important takeaways:

A leasing business model involves a company purchasing a product and then leasing it to a customer for a periodic fee.
In most leasing transactions, three parties are involved: the seller, the buyer (lessee), and the financier (lessor). The lessor buys the product from the buyer and then rents it to the lessee for a set period of time.
The leasing business model provides the seller with early revenue and the opportunity to build a loyal customer base. Leasing allows the lessee to avoid the risk and cost of purchasing an item outright. The lessor may be able to negotiate a higher commission rate with the product manufacturer and thus reduce their tax liabilities.

Types of Connected Business Models and Frameworks

An effective business model must consider two aspects: the people dimension and the financial dimension. The people dimension will enable you to create a product or service that is 10X better than the competition, as well as a strong brand. The financial dimension will assist you in developing proper distribution channels by identifying people who are willing to pay for your product or service and ensuring its long-term financial viability.

Business model innovation is the process of increasing an organization's success with existing products and technologies by developing a compelling value proposition capable of propelling a new business model to scale up customers and create a sustainable competitive advantage. And it all starts with mastering the most important customers.

FAQ about Leasing Business in Bangladesh:

Hire the best corporate finance law firm in Bangladesh

Tahmidur Rahman Remura Wahid has earned its stellar reputation thanks to its proficiency in a wide range of financial transactions, including those involving power and energy, mergers and acquisitions, and large-scale projects. Led by Barrister Tahmidur, the law firm also consults on behalf of international financial institutions like the World Bank and gives advice to large local and international banks on local corporate governance issues. Remura Mahbub is another instrumental part of the team, and she is a big reason why the company gets does so much cross-border work in Southeast Asia and Europe.

In addition, this elite law firm in Bangladesh also deals with shipping law practices assisting in both wet and dry contentious and non-contentious matters, aviation law, capital markets law, bankruptcy and creditors’ rights, and family law. Additional practice areas include asset acquisition, dispute resolution, ICC, LCIA and UNCITRAL arbitration proceedings, finance and securitization law, and aviation law. It consists of an international division comprised of attorneys specializing in foreign and cross-border business and providing premium solutions for international clients.

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চেক ডিজঅনারের মামলা

by Tahmidur Remura Wahid | Feb 14, 2023 | 2023, Law

ব্যাংক হিসাবের চেক দ্বারা প্রতারণা বা চেক ডিজঅনারের মামলা  

একজন ব্যক্তি অন্য কোন ব্যক্তি বা প্রতিষ্ঠান থেকে বিভিন্নভাবে প্রতারিত হতে পারে। তার মধ্যে একটি হচ্ছে চেক প্রতারণা। চেক একটি বিনিময়যোগ্য দলিল। বিনিময়যোগ্য দলিল হিসেবে ব্যক্তি একে অপর কে বা এক প্রতিষ্ঠান অন্য আরেক প্রতিষ্ঠান কে নির্দিষ্ট সেবা বা পন্যের বিনিময়ে  প্রাপ্য মূল্য বা জামানত হিসেবে চেক প্রদান করতে পারেন। চেক প্রদানের ক্ষেত্রে অনেকে দূরবিসন্ধি মূলক চেক প্রদান করে থাকেন।

অর্থাৎ অপর পক্ষ কে তার প্রাপ্য অর্থ  অথবা বিনিময় মূল্য না দিতে প্রতারণার আশ্রয় গ্রহণ করেন। এই প্রতারণা প্রতিনিয়ত ঘটে চলেছে। কিভাবে একজন ব্যক্তি চেক এর মাধ্যমে প্রতারিত হতে পারেন এবং চেক এর মাধ্যমে প্রতারিত হলে করনীয় কি বা কি পদ্ধতিতে প্রতিকার পাওয়া যায় সে বিষয়ে বিস্তারিত আলোচনা করার চেষ্টা করবো এই অনুচ্ছেদ এর মাধ্যমে।

চেক এর মাধ্যমে কিভাবে প্রতারিত হতে পারেন তা জেনে নিই – চেক প্রদানকৃত ব্যক্তির ব্যাংক হিসেবে টাকা না রেখে বা চেকে উল্লেখিত টাকার অংকের চেয়ে ব্যাংক হিসেবে টাকা কম রাখা অর্থাৎ অপর্যাপ্ত তহবিল, চেক প্রদান করে ব্যাংক হিসাব বন্ধ করে দেওয়া বা ব্যাংক কে Stop Pay Instruction দিয়ে রাখা, চেকের নির্দিষ্ট স্বাক্ষর ব্যতিত ভিন্ন স্বাক্ষর দেওয়া অর্থাৎ ত্রুটিপূর্ন স্বাক্ষর, চেকে উল্লেখিত টাকার অংক কে অন্য কোন সংখ্যা সংযুক্ত করার মাধ্যমে, চেকে টাকার পরিমাণ  অংক ও কথায় ভিন্নভাবে লেখা, কোন কিছুর বিনিময়ে জামানত হিসেবে খালি চেক প্রদান করা বা জামানত হিসেবে প্রদানকৃত চেক ফেরত চাইলে তা না দিয়ে প্রতারণা করতে পারেন যে কেউ।

এছাড়াও ব্যাংকিং ক্ষেত্রে ঋণের বিপরীতে সিকিউরিটি হিসেবে নেওয়া চেক এর কারণেও আপনি বিপদে পড়তে পারেন। 

চেক ডিজঅনার বা চেক দ্বারা প্রতারিত হলে করনীয় কি? 

চেক দ্বারা প্রতারিত হলে প্রথম যে কাজটা করা যায় তা হচ্ছে স্থানীয়ভাবে মীমাংসার চেষ্ঠা করা। স্থানীয়ভাবে মীমাংসা না হলে একজন বিজ্ঞ অ্যাডভোকেট এর শরণাপন্ন হওয়া। 

চেক মামলা থেকে বাচার উপায়

চেক দ্বারা প্রতারণা একটি শাস্তিযোগ্য অপরাধ। চেক দ্বারা প্রতারিত হলে ক্ষেত্র বিশেষে দুই ভাবে প্রতিকার পাওয়া যায় । প্রথমত বিশেষ আইন – The Instrument Act 1881(হস্তান্তরযোগ্য দলিল আইন ১৮৮১) এর ১৩৮ ধারা অনুযায়ী এবং দ্বিতীয়ত মূল আইন - The Penal Code 1860 (দণ্ডবিধি ১৮৬০) এর ৪০৬ ও ৪২০ ধারা অনুযায়ী।

বিশেষ আইন – The Instrument Act 1881(হস্তান্তরযোগ্য দলিল আইন ১৮৮১) এর ১৩৮ ধারা অনুযায়ী কিভাবে প্রতিকার পেতে পারি তা জেনে নিই। 

প্রথমত, প্রদানকৃত চেক টি অবশ্যই চেকে উল্লেখিত তারিখের ৬ মাসের মধ্যে ব্যাংকে উপস্থাপন করতে হবে এবং ব্যাংক কর্তৃক উক্ত চেকটি  প্রত্যখাত (প্রত্যাখানের লিখিত বিবরণ সহ) হতে হবে।

দ্বিতীয়ত, চেকটি ব্যাংক থেকে প্রত্যাখাত হয়ে ফেরত আসার ৩০ দিনের মধ্যে একজন বিজ্ঞ অ্যাডভোকেট এর মাধ্যমে আইনগত (লিগ্যাল) নোটিশ প্রদান করতে হবে চেক দাতা বরাবরে। নোটিশ পাওয়ার ৩০ দিনের মধ্যে চেকদাতা যদি চেকগ্রহীতাকে অর্থ পরিশোধ করতে ব্যর্থ হয় তাহলে পরবর্তী ৩০ দিনের মধ্যে চেকগ্রহীতা চেকদাতার বিরুদ্ধে মামলা করতে পারবেন। অর্থাৎ চেকগ্রহীতার চেক প্রত্যাখাত হওয়ার পর থেকে ৩০+৩০+৩০ =৯০ দিন সময় পাবেন একটি চেক প্রত্যাখানের ( ডিজঅনার ) মামলা করার জন্য। 

তৃতীয়ত, চেক প্রত্যাখানের (ডিজঅনার) মামলা করতে হয় নালিশী মামলার মাধ্যমে। অর্থাৎ চেক ডিজঅনার এর মামলা শুধুমাত্র আদালতে করা যাবে। কোনভাবে থানায় করা যাবে না।  

চেক ডিজঅনার মামলার লিগ্যাল নোটিশ দেওয়ার পদ্ধতিঃ

ব্যাংক অ্যাকাউন্টে প্রর্যাপ্ত টাকা না থাকায় চেক ডিজঅনারে হলে ৩০ দিন এর মাঝে চেক দাতাকে টকা পরিশোধের জন্য লিগ্যাল নোটিশ প্রদান করতে হবে। লিগ্যাল নোটিশ তিন ভাবে দেওয়া যেতে পারে।

• নোটিশ গ্রহিতার হাতে সরাসরি নোটিশ প্রদান করে।
• ডাকযোগে চেক প্রদানকারীর ঠিকানায় এবং সর্বশেষ বসবাসের ঠিকানায় প্রাপ্তি স্বীকারপত্র সহ নোটিশ প্রদান করে।
• সর্বশেষ কোনো জাতীয় বাংলা দৈনিকে নোটিশটি বিজ্ঞপ্তি আকারে প্রকাশ করে।এ তিন পদ্ধতির যে কোন একটা পদ্ধতি অনুসরণ করলে হবে। 

অর্থাৎ চেকটি যে ব্যাঙ্ক বা অন্যান্য আর্থিক প্রতিষ্ঠানে আঁকা হয়েছে তাকে মেইল ​​করে বা একটি চিঠি পাঠানোর মাধ্যমে একজন ব্যক্তি চেক অসম্মানের মামলার আইনি নোটিশ দিতে পারেন। এই চিঠিতে অবশ্যই উল্লেখ করতে হবে যে ব্যাঙ্ক বা অন্য আর্থিক প্রতিষ্ঠান চেকটি পরিশোধ করেনি এবং নোটিশের কারণ ব্যাখ্যা করতে হবে।

আপনার ব্যাঙ্ক অ্যাকাউন্টে পর্যাপ্ত টাকা না থাকার কারণে যদি একটি চেক সম্মানিত না হয়, তাহলে আপনি তিনটি উপায়ে আইনি নোটিশ পাবেন। আপনি একটি চিঠি পাঠাতে পারেন, পোস্ট করতে পারেন বা চেক পেয়েছেন এমন ব্যক্তিকে দিতে পারেন।

ডাক পরিষেবা প্রাপকের ঠিকানায় নোটিশ প্রদান করে। চেকের ড্রয়ার এবং নোটিশ প্রাপ্ত ব্যক্তির সর্বশেষ পরিচিত ঠিকানা উভয়ই নোটিশে তালিকাভুক্ত করা হয়েছে। জাতীয় বাংলা পত্রিকা বিজ্ঞপ্তিটি বিজ্ঞপ্তি প্রকাশ করে।

চেক ডিজঅনারের মামলায় অপরাধের শাস্তিঃ

সকল সাক্ষ্য প্রমান, জেরা, যুক্তিতর্কের পর আদালত রায় প্রদান করবেন। অপরাধ প্রমান হলে আইন অনুসারে শাস্তি হিসেবে এক বছর কারাদন্ড অথবা চেকে উল্লেখিত অর্থের তিনগুণ পর্যন্ত অর্থদন্ড অথবা উভয় দন্ডে দন্ডিত করতে পারেন।

চেক ডিজঅনার মামলার করার জন্য যে সকল কাগজ প্রত্র আদালতে দাখিল করতে হবেঃ 

১। মামলার আরজী/ দরখাস্ত।

২। লিগ্যাল নোটিশ এর ফটোকপি ।

৩। লিগ্যাল নোটিশ প্রেরনের ডাক রশিদ এবং এ.ডি এর ফটোকপি।

৪। মূল চেকের ফটোকপি।

৫। ডিসঅনার স্লিপ এর ফটোকপি।

৬। অন্যান্য প্রয়োজনীয় কাগজ পত্র।

মামলা দায়েরঃ 

ম্যাজিস্ট্রেট আদালতে মামলা দায়েরের পর ম্যাজিস্ট্রেট মামলা আমলে নিয়ে বিবাদী বরাবর সমন ইস্যু করবেন। ম্যাজিস্ট্রেট কর্তৃক ইস্যুকৃত সমন অনুযায়ী বিবাদী যদি হাজির না হয় তাহলে পেপারে বিজ্ঞপ্তি দিবেন তারপরও হাজির না হলে ওয়ারেন্ট দিবেন এবং আসামী ধৃত হলে বা সমন অনুযায়ী হাজির হলে মামলাটি বিচারের জন্য প্রস্তুত হয়ে যাবে এবং ম্যাজিস্ট্রেট মামলাটি বিচারের জন্য যুগ্ন দায়রা জজের নিকট পাঠিয়ে দিবেন। 

যুগ্ন দায়রা জজ কর্তৃক বিচারকালে চেক প্রতারণার বিষয়টি প্রমাণিত হলে শাস্তি হিসেবে দিতে পারেন সর্বোচ্চ ১ বৎসর পর্যন্ত কারাদণ্ড অথবা চেকের সমপরিমাণ বা তিনগুন অর্থদন্ড অথবা ঊভয়দন্ড । এইখানে একটা প্রশ্ন থেকে যায় তা হচ্ছে – চেকে উল্লেখিত অর্থের ২ (দুই) বা ৩ (তিন) গুন অর্থ যদি জরিমানা বা অর্থদণ্ড প্রদান করেন তাহলে চেকে উল্লেখিত অর্থের অতিরিক্ত টাকাগুলো কে পাবেন! তার উত্তর হচ্ছে – অতিরিক্ত টাকা গুলো সরকারি কোষাগারে জমা হবে। 

আপীলঃ যুগ্ন দায়রা জজ কর্তৃক প্রদানকৃত শাস্তির বিরুদ্ধে আপীল করতে হবে দায়রা জজ আদালতে। তবে হস্তান্তরযোগ্য দলিল আইন ১৮৮১ এর ১৩৮ (ক) ধারা মোতাবেক আপীল দায়েরের পূর্বশর্ত হচ্ছে চেকে উল্লেখিত পরিমাণ অংকের কমপক্ষে ৫০% অর্থ আদালতের অনুকূলে জমা দিতে হবে। ৫০% অর্থ জমা ব্যতিত আপীল করা যাবে না। এবং ফৌজদারী কার্যবিধি ১৮৯৮ এর ৪০৮ ধারা মোতাবেক আপীল দায়ের এর নিয়মগুলো অনুসরণ করতে হবে। ৪০৮ ধারার নিয়ম অনুসারে ৩০ দিনের মধ্যে আপীল দায়ের করতে হবে দায়রা জজ আদালতে। 

অন্যদিকে চেকের নির্দিষ্ট মেয়াদ শেষ হয়ে গেলে বা উপরে উল্লেখিত বিশেষ আইন অনুসারে মামলা করা সম্ভব না হলে তখন উপায় কি? এই ক্ষেত্রে কি প্রতারণার শিকার হওয়া ব্যক্তি আইনগত প্রতিকার থেকে বঞ্চিত হবেন? না। প্রতারণার শিকার হওয়া ব্যক্তি আইনগত প্রতিকার থেকে বঞ্চিত হবেন না। তিনি মূল আইন  অর্থাৎ The Penal Code 1860 (দণ্ডবিধি ১৮৬০) এর ৪০৬ ও ৪২০ ধারা অনুযায়ী ম্যাজিস্ট্রেট আদালতে প্রতারণার মামলা করতে পারবেন। উক্ত আইন এর ৪০৬ ধারা অনুযায়ী ৩ বৎসর পর্যন্ত এবং ৪২০ ধারা অনুযায়ী সর্বোচ্চ ৭ বৎসর পর্যন্ত কারাদণ্ড বা অর্থদন্ড অথবা উভয় দন্ডে দন্ডিত হবেন।   উক্ত দুইটি ধারায় থানায় এবং ম্যাজিস্ট্রেট আদালতে উভয় স্থানে মামলা করা যাবে। 

চেক ডিজঅনার মামলায় আপনাকে(বাদীকে) যে সকল বিষয় প্রমান করতে হবেঃ

চেক ডিজঅনারের মামলায় বাদীকে (যিনি প্রতারিত হয়েছেন ) অনেক বিষয় প্রমান করতে হয় এবং সে সকল বিষয় প্রমান করতে পারলে আসামীকে শাস্তি দেওয়া যাবে ।

১। আসামী বাদীকে চেক প্রদান করেছে ।

২। ঋণ বা দায়-দেনা পরিশোধের জন্য আসামী বাদীকে চেক প্রদান করেছে।

৩। ঋণ বা দায়-দেনা আসামী আইনুগভাবে পরিশোধ যোগ্য।

৪। ব্যাংক অ্যাকাউন্টে প্রর্যাপ্ত টাকা না থাকায় চেক ডিজঅনার হয়েছে।

৫। চেক ডিজঅনারে সময় থেকে ৩০ দিন এর মাঝে আসামীকে টাকা পরিশোধের জন্য

লিগ্যাল নোটিশ প্রদান করা হয়েছে।

৬। আসামী নোটিশ প্রাপ্তির ৩০ দিনের ভিতরে চেকে উল্লেখিত টাকা বাদীকে পরিশোধ ব্যর্থ হয়েছে।

৭। আসামী ব্যাবসায়িক লেনদেনের কারনে বাদীকে চেক প্রদান করলে বাদীকে আসামীর সাথে  তার ব্যাবসায়িক সম্পর্ক ছিল প্রমান করতে হবে।

চেক ডিজঅনারের মামলায় বাদী/আসামী মৃত্যু হলেঃ

অনেক বিশ্বাস করে যে চেক ডিসঅনার মামলার বাদী/বিবাদীর একজন মারা গেলে মামলাটি শেষ হয়ে যায়। এটি ধারা 138 এর অধীনে চেক অসম্মানের ক্ষেত্রে সত্য নয়। একটি চেক অসম্মান মামলা অন্যান্য সমস্ত ফৌজদারি মামলা থেকে সামান্য আলাদা এবং একটি দেওয়ানী বিষয় হিসাবে, বাদী বা বিবাদীর মৃত্যুর সাথে শেষ হয় না। বাদীর মৃত্যুর পর তার আইনগত প্রতিনিধি বাদীর সাক্ষী হিসেবে মামলা পরিচালনা করতে পারবেন। মামলা চলাকালীন আসামি মারা গেলে মামলাটি সংশোধন করে মামলা চলতে পারে। যদি মামলা চলমান থাকে বা মামলা দায়েরের আগেই বিবাদীর মৃত্যু হয়, বাদীর একমাত্র প্রতিকার হল বিবাদীর আইনী প্রতিনিধির বিরুদ্ধে দেওয়ানী আদালতে একটি পুনরুদ্ধার মামলা দায়ের করা।

চেক ডিজঅনারের মামলায় আপিলঃ

আদালতের রায়ের পরে চেক ডিজঅনারের মামলায় আপিল করার সুযোগ রয়েছে। ১৩৮ ধারায় চেক ডিজঅনার মামলায় প্রদও দন্ডাদেশের বিরুদ্ধে আপীল করা যাবে। দায়রা জজ অথবা অতিরিক্ত দায়রা জজের দন্ডাদেশের বিরুদ্ধে হাইকোর্ট বিভাগে আপীল দায়ের করতে হবে এবং যুগ্ম দায়রা জজের দণ্ডাদেশের বিরুদ্ধে দায়রা জজের নিকট আপীল করা যাবে।

চেক ডিজঅনারের মামলায় আপীল করার পূর্বশর্তঃ

১৩৮ ধারায় চেক ডিজঅনার মামলায় প্রদও দন্ডাদেশের বিরুদ্ধে আপীল করা্র আগে দন্ডাদেশের উল্লেখিত অর্থের ৫০% আদালতে জমা দিয়ে আপীল করতে হবে। ৫০% টাকা বিচারিক আদালতে জমা দিতে হবে অর্থাৎ যে আদালত শাস্তি প্রদান করেছেন সে আদালতে টাকা জমা দিতে হবে।

তাহমিদুর রহমান রিমুরা টি এল এস ল ফার্ম কর্তৃক চেক ডিজঅনারের মামলায় আইনী সেবা:

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Medical Negligence and Medical Malpractice law in Bangladesh

by Tahmidur Remura Wahid | Feb 10, 2023 | 2023, Law

Medical Negligence law in Bangladesh

In Bangladesh, medical negligence has become a popular topic of interest and discussion. However, there is currently no precise and comprehensive legislation to prevent medical negligence. Currently, the vast majority of instances of medical negligence go unpunished, but frequently result in violence. As a result, the general public's perception of the veracity of medical services is taking a downward turn, which is a frustrating situation.

Medical negligence is a clear violation of the right to health committed by professionals whose primary duty is to protect when an emergency occurs and health rights are at risk. The number of deaths attributable to medical negligence is not negligible. According to a study, medical errors are the third leading cause of death in the United States, after heart disease and cancer, and are responsible for at least 250,000 deaths annually.

Medical negligence in Bangladesh:

As for Bangladeshi statistics, Ain O Salish Kendra released a report in 2008 detailing 504 instances of medical negligence between June 1995 and September 2008. According to the Geneva Declaration of the World Medical Association, a member of the medical profession must solemnly pledge that the health of the patient will be the primary concern.

In contrast, medical malpractice implies culpable negligence in the field of medical science and poses a risk to the health and well-being of a patient who entrusts his or her well-being to a medical professional. Articles 18 and 32 of the Bangladeshi constitution, which guarantee the right to health and the right to life, are being flagrantly violated.

Article 32 of our Constitution protects "the right to life" as a fundamental right for its citizens. In addition, according to the fundamental principles of state policy, the state is obligated to provide "basic necessities of life," such as food, clothing, shelter, education, and medical care, as well as to "raise the level of nutrition and improve public health." Articles 15, 18, read in conjunction with Articles 31, 32, and 44 outline the constitutional remedies for the protection of health and life. Article 102 (writ petitions) of the United States Constitution allows for the enforcement of such rights.

Initial Stage 

Initial Stages includes the following steps: 

• FIR in cognizable offence; 
• Complain in cognizable & non-cognizable offence
• Investigation 
• Charge Sheet or Final Report 
• Naraji Petition

Proceeding Stage 

Proceeding Stage includes the following steps: 

• Taking Cognizance
• Issuing Process 
• Transfer of the Case

Trail Stage 

Trail Stage includes the following steps: 

• Framing of Charge
• Plea & Conviction 
• Hearing/Taking Evidence/Examination Etc.
• Judgment 

Criminal Cases are tried before the Judicial Magistrate and/or the Session Judge court as per  their nature and procedure. 

1. Trail By Magistrate: 

• Section 241 of CrPC: Procedure in Cases.
• Section 241A of CrPC: When accused shall be discharged. 
• Section 242 of CrPC: Charge to be framed. 
• Section 243 of CrPC: Conviction on admission of truth of accusation 
• Section 244 of CrPC: Procedure when no such admission is made. 
• Section 245 of CrPC: Acquittal or Sentence
• Section 247 of CrPC: Non-appearance of Complainant 
• Section 2418 of CrPC: Withdrawal of Complaint
• Section 249 of CrPC: Power to stop proceedings when no complainant. 

     2. Trail by Court of Session: 

• Section 265A of CrPC: Trail to be conducted by Public Prosecutor 
• Section 265B of CrPC: Opening Case for Prosecution 
• Section 265C of CrPC: Discharge 
• Section 265D of CrPC: Framing Charge
• Section 265E of CrPC: Conviction of Plea of Guilty 
• Section 265F of CrPC: Date for prosecution evidence
• Section 265G of CrPC: Evidence of Prosecution 
• Section 265H of CrPC: Acquittal 
• Section 265I of CrPC: Entering upon Defence
• Section 265J of CrPC: Arguments 
• Section 265K of CrPC: Judgment of Acquittal or Conviction

Post Trial State

Post Trail Stage includes the following Step: 

• Execution of Sentence

In general, criminal complaints are filed against doctors alleging the commission of offenses punishable under Section 304A or Sections 336, 337, or 338 of the Bangladesh Penal Code 1860 alleging rashness or negligence on the part of the doctors resulting in the death or injury of the patient to varying degrees. However, Sections 80 and 88 of the Penal Code provide defences for doctors who have been accused of criminal liability.

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Bangladesh's Medical and Dental Council

Bangladesh's Medical and Dental Council is the governing body for doctors and other health professionals. According to the বাংলাদেশ মেডিকেল ও ডেন্টাল কাউন্সিল আইন, ২০১০, if a medical practitioner or dentist is found guilty of professional misconduct, the council may deny that person registration (Section 23).

Due to professional misconduct, the council may also order the removal of the name of any registered physician or dentist from the registration, either permanently or for a specified period.
In addition, Section 5(a) of the Code of Medical Ethics states that gross negligence on the part of medical and dental practitioners in the performance of their duties to their patients may constitute misconduct sufficient to justify suspension or removal from the registrar.

The Medical Practice and Private Clinics and Laboratories (Regulation) Ordinance of 1982 granted the director general of health services supervisory authority. The director general of health services or any officer delegated by him shall have the authority to inspect any chamber of registered medical practitioners, private clinic, private hospital, or pathological laboratory to determine whether they have violated or failed to comply with any provision of this ordinance (Section 11).

If the director general determines that they have violated any provision of this ordinance, he may recommend to the government, in the case of a medical practitioner, that he be barred from engaging in private medical practice, in the case of a private clinic or private hospital, that its license be revoked, and in the case of a pathological laboratory, that it be closed.

Patients' rights are similarly protected and enforced in cases of medical negligence, with particular reference to the Consumer Rights Protection Act of 2009. This act defines'service' as, among other things, health services made available to consumers in exchange for payment (Section 2 (22) of the act), but not free services.

Punishment for negligence

Now they are able to file a lawsuit under this act because a medical patient is considered a consumer and medical institutions or professionals are service providers under Section 2, despite the fact that this is not explicitly stated in the act. However, courts have accepted such cases. This act's section 45 addresses the penalties for failing to sell or deliver the promised product or service.

It stipulates imprisonment for a term not to exceed three years, a fine not to exceed Tk 2,00,000, or both. In Section 52, it is stated that anyone who violates the rules or regulations of this act or law in a way that endangers the life or security of a consumer will be punished with imprisonment for a term not to exceed one year, a fine not to exceed Tk 50,000, or both.

The section that can be directly related to medical negligence is Section 53, which states that if a service provider causes damage to the money, health, or life of a service recipient through negligence, irresponsibility, or carelessness, he will be punished with imprisonment for a term not to exceed three years, a fine not to exceed Tk 2,00,000, or both.

However, these punishments are insufficient because the amount of the fine is often disproportionate to the loss or damage caused by the service providers.

In addition, if a consumer wishes to file a complaint under Section 60 of the Consumer Protection Act of 2009, he or she must first file a complaint with the director general or an authorized representative of the department within 30 days of the accrual of the cause of action. And according to Section 61, the magistrate will not take cognizance of any crime if the charge sheet is not submitted within ninety days of the complaint being filed.

Medical Negligence and Consumer complaint:

It means that even if a consumer suffers a loss, the consumer cannot file a complaint directly with the magistrate, and the magistrate will not take cognizance until the magistrate receives the charge sheet within 90 days from the authorized person. As a result, consumers become frustrated or lose interest because this procedure is complicated and appears inconvenient. In the case of private sectors, the director general has the authority to identify health-nursing care deficiencies but cannot take preventative action.

Only the health secretary and the director general of the health services directorate general will be informed. As a result, there is a significant barrier to punishing medical professionals working in the private sector, and the incidence of professional negligence in private clinics continues to rise.

The term'medical profession' has not been added explicitly to Section 2, whereas it was added to Section 2 (1) (o) of the Consumer Protection Act of India 1986 in 1995. In the case Indian Medical Association v. VP Shantha (3 CPR (1995) 412), the Supreme Court determinedly added the health profession to the scope of the Consumer Protection Act. In fact, this term should be added to our statute so that it is clear that victims of medical malpractice must go to the consumer court to seek justice.

Although it has been questioned whether medical care should be viewed as a product, medical negligence litigation has been credited with bringing about safer practices in the provision of health care in neighboring India, where cases of medical negligence have been significantly reduced.

Therefore, amendments may be made to the Consumer Protection Act of Bangladesh to make it effective and adaptable to medical negligence litigation, so that the state may provide patients with assurance of improvement in the health care delivery system addressing the public health's common good.

Tort actions and Medical Malpractice:

Tort actions were recently introduced in Bangladesh, but they are not yet well-established in our legal system. This is due to the fact that tort law is not codified and because Section 9 of the Code of Civil Procedure 1908 authorizes a civil court to hear all civil cases and gives courts the authority to apply tort law as an inalienable part of the principles of justice, equity, and good conscience.

In tort law, as opposed to criminal law, a claim is an action for the recovery of damages (i.e., monetary compensation) that seeks to compensate the harms suffered by a person as a result of the intentional or unintentional act of another, as opposed to sending the wrongdoer to prison.

The individual claiming damages (the claimant) may be the primary or secondary victim. Negligence is the legal term for the failure to do (or to refrain from doing) something that a "reasonable person" would have done in the same circumstances, which has been interpreted to protect others from foreseeable risks of harm. When medical negligence occurs, negligence claims may be filed against physicians and other medical professionals.

In Bangladesh, it is a relatively new trend to pursue damages as a tort claim solely on equitable grounds, without relying on statutory provisions. We hope to become familiar with the application of the tort law principle in medical negligence cases more frequently than in the past, and then we can expect to ensure accountability for medical negligence on a larger scale.

Under the current legal structure, there is no codified law on medical negligence, and in the absence of a developed tort regime, the laws on negligence are scattered and general. The sections 304A and 336 of the Penal Code 1860 penalize and define negligence as conduct that "endangers human life or the personal safety of others."

The Bangladesh Medical and Dental Council Act of 2010 penalizes those who falsely represent themselves to be medical or dental practitioners (section 28), (ii) use any such name, designation, description, or symbol that others could reasonably believe to be true (section 29), and (iii) prescribe medication that has not been approved by the government (section 30).

In addition to penalizing negligence, Sections 52 and 53 of the Consumer Protection Act of 2009 significantly empower the Director-General of the Directorate for Consumer Rights Protection to take action against "anti-consumer activities."

Lack of specificity in the jurisdiction of Medical Malpractice law in Bangladesh:

Despite these legal provisions – albeit dispersed – at our disposal to secure justice, our legal system has yet to develop a jurisprudence allowing recourse for citizens who have been negligently treated by healthcare service providers. In recent years, however, courts have been proactive in compensating victims in egregious cases of medical negligence. In 2011, Mr. Justice AHM Shamsuddin Chowdhury Manik and Mr. Justice Jahangir Hossain ordered Labaid Hospital to compensate the widow of Dhaka University professor Mridul Kanti Chakrabarty, who died due to delayed medical treatment and alleged hospital negligence.

In 2017, the Suo Moto ruling by Madam Justice Salma Masud Chowdhury and Mr. Justice AKM Zahirul Haque ordered respondents to pay the victim Tk. 9 lakhs in compensation for falsely representing himself as a certified doctor and performing surgery on the victim while leaving pieces of gauge inside her stomach, causing her interminable suffering and additional medical expenses.

In jurisdictions such as the United Kingdom, however, there are established bases for calculating claims arising from personal injury and medical negligence. Instruments such as the Judicial College Guidelines (JCG) and Ogden tables standardize the amount of compensation for different degrees of injury to different parts of the body and take into account other factors, such as the loss of income and follow-up expenses of victims recovering from the negligent act.

In India, despite similarly dispersed laws, the Court and the Maharashtra Medical Council (MMC), a quasi-judicial body with significant authority, regularly hear medical negligence cases.

Under the Consumers Rights Protection Act of 2009, the specialist is not liable for every injury sustained by a patient due to medical negligence.

As it were, he is responsible for the consequences of a breach of his obligation. After establishing the existence of an obligation, the aggrieved party must then demonstrate the breach of obligation and its cause. Different sections of the Consumers Rights Protection Act of 2009 contain corrective amendments to safeguard consumer rights.

Section 52 specifies the punishment for any act that endangers the life or safety of consumers. Section 53 penalizes the act of carelessness that results in loss of life or bodily harm. In addition, section 45 provides penalties for the sale or delivery of substandard services.

According to the Bangladesh Medical and Dental Council Act of 2010, medical malpractice is:

According to Section 23 of the Bangladesh Medical and Dental Council Act of 2010, the Council may revoke the registration of any doctor, dentist, or medical assistant who is found to be responsible for improper conduct or violation of this act. However, the act itself has not clearly communicated the offenses committed by the specialist. In addition, Section 30 outlines the penalties for endorsing prohibited drugs.

Conforming to the Contract Act of 1872 for breach of contract or benefit, if the patient is entitled to compensation for any loss or damage caused by the contract violator. This compensation is not to be provided for any indirect or remote loss or harm sustained as a result of the breach.

The Specific Relief Act of 1877 can also issue temporary and permanent injunctions against medical professionals or armies that violate legally binding obligations. In addition, under the law of tort, carelessness as a fortuitous or gracious obligation, restorative professionals or authorities may be liable for damages.

A number of statutes are either directly or indirectly associated with medical practice. The Vaccination Act of 1880, the Drugs Act of 1940, and the Eye Surgery Act (Restriction) The statute, 1960 The Pharmacy Ordinance of 1976, the Drug (Control) Ordinance of 1982, the Medical Practice and Private Clinics and Laboratories (Regulation) Ordinance of 1982, the Bangladesh Unani and Ayurveda Practitioners Ordinance of 1983, the Human Organ Transplantation Act of 1999, etc.

FAQ about Medical Negligence law in Bangladesh:

Hire the best Medical Negligence law firm in Bangladesh:

Tahmidur Rahman Remura Wahid is one of the leading chambers on crime and Medical Negligence litigation law firm in Bangladesh. Mr. Wahid and Ms Remura Wahid has been engaged as a defence counsel in numerous bail matters and for quashing of proceedings.

In particular, all the criminal prosecution lawyers in Tahmidur Rahman Remura Wahid Law firm is vastly skilled in dealing with anti-corruption and criminal litigation cases in regards to the specific sectors mentioned in this article. Our Partners have combined 31 years of experience and he is considered as one of the best criminal lawyers in the Magistrates Court and Sessions Court.

For further information, visit the following links:

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Company: Tahmidur Rahman Remura Wahid Law Firm
Email Address: info@tahmidur.com or info@trfirm.com
Website: https://tahmidurrahman.com/
Phone Number: +8801847220062 & +8801779127165

Private Equity law in Bangladesh

by Tahmidur Remura Wahid | Jan 31, 2023 | 2023, Law

Private equity (PE) refers to the investment of capital into private companies that are not publicly traded on stock exchanges. The private equity industry in Bangladesh is still in its early stages of development, but it has been showing steady growth in recent years.

Bangladesh has a rapidly growing economy, with a GDP growth rate of around 7% in recent years. The country has a large and young population, a growing middle class, and a rapidly expanding consumer market. These factors make Bangladesh an attractive destination for private equity investment.

Private Equity Industry in Bangladesh:

The private equity industry in Bangladesh is dominated by domestic players, with a few international firms also active in the market. The main sectors that attract private equity investment in Bangladesh are consumer goods and services, healthcare, education, and infrastructure.

One of the main challenges facing the private equity industry in Bangladesh is the lack of a well-developed legal and regulatory framework. The country's legal system is not fully developed and there are significant gaps in the laws and regulations that govern private equity transactions. This makes it difficult for private equity firms to invest in Bangladesh and for companies to access the capital they need to grow.

For example, there are no specific rules or regulations for the registration and reporting of private equity funds, and there is no specific legal framework for the protection of minority shareholders. This lack of legal protection makes it difficult for private equity firms to invest in Bangladesh and for companies to access the capital they need to grow.

Another challenge facing the private equity industry in Bangladesh is the lack of a developed exit market. Private equity firms typically invest in companies with the expectation of exiting their investments after a certain period of time. However, in Bangladesh, there are very few options for private equity firms to exit their investments. This makes it difficult for private equity firms to achieve a good return on their investments.

New Rules for the regulation of Private equity fund and venture capital fund in Bangladesh:

In June 2015, the Bangladesh Securities and Exchange Commission approved new rules for private equity and venture capital firms, allowing them to pool funds and make equity investments in non-listed companies.

To create and manage funds for equity financing, private equity and venture capital firms must adhere to the Alternative Investment Rules.

The fund managers, who must be registered with the BSEC, will raise capital from eligible investors, which could include institutions, high-net-worth individuals, and foreign fund managers.

The funds cannot be raised through a public issue or an initial public offering; they can only be raised through a private placement and, unlike other mutual funds, will not be listed or traded on stock exchanges.

BSEC approved the draft Alternative Investment Rules and published it on the commission's website as well as in national dailies for public comment.

Venture Capital Association in Bangladesh

Despite these challenges, the private equity industry in Bangladesh is showing steady growth. The government of Bangladesh has recognized the importance of private equity in the country's economic development and has taken steps to improve the investment climate. The government has also set up a number of initiatives to support the private equity industry, such as the Bangladesh Private Equity and Venture Capital Association (BPEVCA).

In addition to the government's efforts, there are also a number of private sector organizations working to support the private equity industry in Bangladesh. For example, the Bangladesh Venture Capital and Private Equity Association (BVCA) works to promote the private equity industry in Bangladesh by fostering relationships between private equity firms, companies, and investors.

Plans to establish a stock exchange for SME

Despite the challenges, the private equity industry in Bangladesh has the potential to play a significant role in the country's economic development. The large and growing population, the rapidly expanding consumer market, and the government's efforts to improve the investment climate all make Bangladesh an attractive destination for private equity investment. As the private equity industry in Bangladesh continues to grow and develop, it will become an increasingly important source of capital for companies looking to expand and grow.

In conclusion, the private equity industry in Bangladesh is still in its early stages of development but it has been showing steady growth in recent years. The country has a rapidly growing economy, with a GDP growth rate of around 7% in recent years. The main sectors that attract private equity investment in Bangladesh are consumer goods and services, healthcare, education, and infrastructure. The main challenges facing the private equity industry in Bangladesh are the lack of a well-developed legal and regulatory framework and the lack of a developed exit market.

Despite these challenges, the private equity industry in Bangladesh has the potential to play a significant role in the country's economic development. The government of Bangladesh is taking steps to improve the investment climate and a number of private sector organizations are working to support the private equity industry in Bangladesh.

The government of Bangladesh has announced plans to establish a stock exchange for small and medium-sized enterprises (SMEs) that will provide a platform for SMEs to raise capital. This will likely increase opportunities for private equity firms to invest in SMEs and provide a viable exit option for private equity firms.

Relevant laws regarding Private Equity in Bangladesh

The following is a table that includes some of the relevant laws, regulations and initiatives related to private equity in Bangladesh:

As the private equity industry in Bangladesh continues to grow and develop, it is likely that more laws and regulations related to private equity will be put in place and more options for exits will be created.

Amendments made to the Alternative Investment Rules in 2020

• The definition of “eligible investor” and “investor” has been expanded to incorporate “founda’ons” and “approved gratuity funds”.
• Also in the descrip)on of a provident fund which was already eligible as an investor has been prefixed with “recognised”. A similar prefix has been added to “supperanua)on fund” with “approved” . A similar addi)on was made to “gratuity fund” with “approved” being added. The repercussion for such changes is going to require cer)fica)on or accredita)on of the said funds in order to be eligible to invest.
• The required opera)on track record for eligibility of “private equity fund” has been increased by a year to three years.
• The amendment here has enabled “venture capital funds” to invest in companies that have already been in opera)on for three years instead of the earlier limita)on of two years. This will broaden the investable op)ons of “venture capital funds”
• Amendments have been made to prepare financial statements as per Interna)onal Financial Repor)ng Standards as applicable in Bangladesh and the audited financials to be prepared as per Interna)onal Standards on Audi)ng
• Amendment has been made to ensure that the fund manager should obtain consent from the trustee before disbursement of fund to any non-listed securi)es of porGolio companies.
• The exercise of an independent valuer , conduc)ng a valua)on of the investments of the fund has been relaxed to a minimum of once every year instead of twice a year.
• Apart from cons)tu)ve documents, financial documents and other documents will have to be shared to eligible investors with the added flexibility of being shared in electronic form instead of printed hard copy.
• A check has been placed to ensure that the fund manager cannot share the profit from the fund twice as performance fee.

• Made amendment to enable the fund manager to hold up-to 30% of unit funds as opposed to 25% before.
• The lock in for investments in funds has been brought down to 2 years from 3 years .
• Investments of connected persons’ of the fund manager in alterna)ve investment fund will also have to be disclosed in the annual reports.
• Registra)on fee has been halved to 0.05% of the fund corpus
• Annual fee of the fund has been reduced by 20% to 0.04% of NAV of the fund.
• The minimum subscrip)on by each investor has been brought down to BDT 1,000,000 from BDT 5,000,000.
• Allowed flexibility of investment diversifica)on according to risk management policy of fund. Allows the fund to jointly investment in a porGolio company along with another fund.
• New provision allows the life of the fund to be shortened by a vote of 2/3 majority similar to the previous manned of extension of the life of the fund.

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Although all unlisted companies in Bangladesh are assumed to be supported by private equity, Bangladesh Regulator introduced formal private equity venture capital in 2015 through the Bangladesh Securities and Exchange Commission (Alternative Investment) Rules, 2015. Since then, the firm has advised on the formation of several venture capital funds. However, because this is a new concept, the application is limited.

Tahmidur Rahman Remura 's Experience in the Private Equity Industry:

The firm also has extensive experience in private equity injection in listed companies through "Private Investment in Public Equity (PIPE)" transactions.

Furthermore, the firm advises on simple registrations, incorporation, contractual matters, and uncomplicated ventures, as well as complex investment projects, finance, M&A, and corporate restructurings involving private equities.

Some of the firm's recent significant projects in Bangladesh include:

1. Manufacturing Sector: Marathon Petroleum Corporation, USA - Joint Venture Home Appliance Manufacturing Project
2. Manufacturing Sector: Patrick Industries Inc., USA - Joint Venture Food Product Manufacturing Project
3. Manufacturing Sector: Tire Manufacturing Project, Pilgrim’s Pride Corp.
4. Copper Manufacturing Sector: Star Alliance, Japan Joint Venture Manufacturing Project
5. Steel Manufacturing Project: PEB Steel, Vietnam
6. Oil Sector: ENOC, Dubai
7. Manufacturing Sector: LG, Korea - SKD Plant in collaboration
8. Maxim, PRC - Garments Accessories Manufacturing Sector Manufacturing
9. Hatero, UAE - Cancer production through a joint venture
10. Manufacturing Sector: Trial Foods, UK - Health drink production Industry
11. Sector of Service: Nokia, Finland - Service center
12. Service Sector: Gates Foundation, USA - significant investment in mobile banking
13. Sinopec, People's Republic of China - petroleum service sector
14. Logistics and freight forwarding are examples of service industries.
15. Petrostar, People's Republic of China - petroleum service sector

We also have included some of the details of our clients and their growth in the markets:

Tahmidur Rahman Remura Wahid advises large-scale construction and infrastructure project sponsors, lenders, contractors, and other industry participants. The firm provides non-contentious specialist services to domestic and international projects, covering every industry sector, location, procurement, and financing structure combination.

The firm offers efficient and proactive solutions based on a thorough understanding of the commercial forces and legal aspects that shape construction projects. It brings together experts to provide expert insights into the business implications of new industry initiatives, local legislation, globalization, and private/project finance.

The formal PPP framework was introduced in Bangladesh in 2010 through a policy guideline and was later achieved through legislative integration in 2015 with the passage of the PPP Act, 2015. The firm has extensive experience in project structuring and has been involved in the majority of the first generation PPP projects in Bangladesh, including transportation, water, economic zones, large scale plants, power, mining, and telecommunication. The firm has been involved in almost all major PP projects, including all three toll road projects that have been tendered. In addition, the firm was involved in a large number of constriction projects in the G2G and public procurement models.

Hire the best consultancy law firm in Bangladesh

Tahmidur Rahman Remura Wahid has earned its stellar reputation thanks to its proficiency in a wide range of financial transactions, including those involving power and energy, mergers and acquisitions, and large-scale projects. Led by Barrister Tahmidur, the law firm also consults on behalf of international financial institutions like the World Bank and gives advice to large local and international banks on local corporate governance issues. Remura Mahbub is another instrumental part of the team, and she is a big reason why the company gets does so much cross-border work in Southeast Asia and Europe.

In addition, this elite law firm in Bangladesh also deals with shipping law practices assisting in both wet and dry contentious and non-contentious matters, aviation law, capital markets law, bankruptcy and creditors’ rights, and family law. Additional practice areas include asset acquisition, dispute resolution, ICC, LCIA and UNCITRAL arbitration proceedings, finance and securitization law, and aviation law. It consists of an international division comprised of attorneys specializing in foreign and cross-border business and providing premium solutions for international clients.

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Media Details:
Company: Tahmidur Rahman Remura Wahid Law Firm
Contact Person: Tahmidur Rahman
Email Address: info@tahmidur.com
Website: https://tahmidurrahman.com/
Phone Number: +8801847220062 & +8801779127165