The High Court also allowed the IDRA administrator to continue at the life insurance company, but passed an injunction on him after he acted beyond his jurisdiction
The High Court has instructed the Anti-Corruption Commission (ACC) not to accept a letter submitted by Delta Life Insurance employee Pallab Bhowmick seeking withdrawal of his corruption complaint against the chief of the insurance regulator.
The bench of justices Md Mozibur Rahman Miah and Md Kamrul Hossain Mollah also allowed the Insurance Development and Regulatory Authority (IDRA) administrator to continue at the life insurance company, but passed an injunction on him after he acted beyond his jurisdiction.
Barrister Karishma Jahan, lawyer for Delta Life Chief Executive Officer and the members of suspended board, made the disclosure while speaking to The Business Standard on Tuesday.
The IDRA appointed administrator Sultan-Ul-Abedine Molla at Delta Life Insurance on 11 February citing the company's failure to respond to a show-cause notice issued earlier. It also suspended the Delta Life's board until the administrator ensures special audit into the company within four months.
Meanwhile, the company went to the court for a stay order on appointment of administrator following its press conference claiming that IDRA Chairman Dr M Mosharraf Hossain demanded Tk50 lakh in bribes to approve the company's actuarial basis – which is a must for dividend payout.
The company had filed a corruption case at the ACC against IDRA chairman on December 9 last year, while the IDRA chairman filed a defamation case against the company.
The High Court however on 15 February passed a status quo order that enabled the administrator to continue, and said the full hearing on the matter would take place on 18 March.
Being ordered by Delta Life Administrator Sultan-Ul-Abedine Molla on 17 February, Delta life official Pallab Bhowmick who had filed the ACC case, applied to the commission for withdrawal of the case.
Molla, on the same date, told The Business Standard that the employee had confessed to an internal committee that his complaint was false and the order to withdraw the complaint was based on the committee's recommendation.
Commenting on the matter, Barrister Karishma Jahan said, "Formation of the committee and ordering Bhowmick to withdraw his complaint against the IDRA chairman was beyond the administrator's assigned job, and that is why the High Court passed an injunction ordering him not go beyond his jurisdiction defined in his appointment letter and insurance regulations."
Meanwhile, following contradictory claims by the company and its primary regulator, capital market regulator Bangladesh Securities and Exchange Commission has appointed MABS & J Partners, Chartered Accountants for a special audit into the company financials.
Earlier, IDRA received two reports from two of its appointed chartered accountant firms which pointed out some irregularities within the company, while the company repeatedly questioned the audit and auditors' profile and demanded "unbiased audit."