A 4-member bench of the Appellate Division led by Chief Justice Syed Mahmud Hossain passed the order during a hearing on a petition filed by Bangladesh Bank.

The SC also said the loan defaulters who are entitled in the policy could not get any new loans from the banks during this period.

It also asked to hear the rule issued in this regard before the HC bench led by Justice JBM Hasan.

Advocate Manzill Murshid stood for the petitioner while Attorney General Mahbubey Alam represented the state.

Earlier, on July 2, the Chamber Judge stayed the High Court order after hearing an appeal filed by the Finance Ministry. 

On May 16, the central bank offered special privileges for loan re-scheduling and one-time payment.  Defaulters were allowed to re-schedule loans with 2 percent down payment.

Besides, defaulters will be able to pay the rest of their loans in 10 years and they were also cleared to take more loans from the bank – but the SC overruled this last bit. 

On the same day, the court ordered the central bank to submit a list by June 24 of those who defaulted on loans above Tk 1 crore in the past two decades, the amount of loans that got interest waivers and measures taken to prevent irregularities when providing such waivers.

In January, Human Rights and Peace for Bangladesh filed the writ petition seeking a commission to recommend restrictions on loan interest waivers and probe irregularities in the sector.