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Updated: March 8, 2011 23:41 IST

Court upholds Yunus’ dismissal from Grameen Bank

Haroon Habib
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Nobel laureate and founder of Grameen Bank Muhammad Yunus. File Photo
AP Nobel laureate and founder of Grameen Bank Muhammad Yunus. File Photo

The High Court of Bangladesh on Tuesday dismissed Dr. Muhammad Yunus's challenge to a central bank order removing him last week as Managing Director of the Grameen Bank. The court, after three days of hearing, rejected two writ petitions challenging the March 2 order of the Bangladesh Bank.

Besides Dr. Yunus, nine directors of the microcredit lender appealed to the court challenging the removal. The central bank removed Dr. Yunus claiming that his reappointment in 1999 for an indefinite period had not been made with its prior approval. The court said according to the Bank Companies Act, the central bank reserves the right to issue such orders.

The microcredit pioneer's serving as the MD of Grameen Bank since 1999 was illegal as he crossed 60 years by then, said the court.

The MD of the Grameen Bank is an official who cannot hold the office for an unlimited period, it said.

The Board of Directors of the Grameen Bank is the authority to appoint the Managing Director with approval from the Bangladesh Bank. But it did not happen in Dr. Yunus' case since 1999, the court observed. Dr. Yunus has the right of appeal to the Supreme Court.

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