The House Building Finance Corporation Bill (Amendment) 2021 was placed in Parliament on Monday to increase the authorised and paid-up capitals, and expand its areas of providing services.

Finance Minister AHM Mustafa Kamal placed the Bill in the House and it was sent to the respective Parliamentary Standing Committee for further scrutiny. The Committee was asked to submit its report within a month.

Read:Updated Bankers’ Book Evidence coming, Bill placed

The original law was promulgated in 1973, during Bangabandhu’s rule, through issuing an order.

With the amendment, the authorised capital of the Bangladesh House Building Finance Corporation (BHBFC) will be Tk 1,000 crore while the paid-up capital Tk 500 crore.

The BHBFC, with the enhancement of these, will be able to provide more services, according to the objective of the Bill.

The proposed Bill is making punishment for providing false statements harsher while taking loans from the corporation.

Read:Bill placed in JS with provision of archiving all records

The punishment for providing false statements deliberately to take loan from the corporation has been proposed for a five-year jail term or Tk 500,000 fine or both raising that from a two-year jail term or Tk 2,000 fine or both.

If anyone uses the name of the corporation in any advertisement or prospectus without any written permission, he or she will be sentenced to six months' jail or be fined with Tk 50,000 or both.

The punishment was six months' jail or only Tk 1,000 fine in the existing Bangladesh House Building Finance Corporation Order 1973.

In the proposed Bill, some words, including 'loan default', 'chairman of the corporation', and 'director' have been incorporated.

Read: Cabinet approves draft Finance Company Bill

A superseding clause has been inserted in the bill to give it priority over other laws.

There will be a seven-member Board of Directors for three years while the Chairman and the Managing Director will be appointed by the government.