Dhaka, March 12 -- The High Court has questioned the legality of financial activities run by unauthorised private microfinance institutions (MFIs) and cooperative societies, as well as informal local money-lenders.

It has issued a rule upon the government bodies concerned to explain why their inaction and failure to monitor and supervise the financial activities of these bodies shall not be declared illegal.

The finance secretary, the home secretary, the Bangladesh Bank governor, the Microcredit Regulatory Authority (MRA) chairman, the inspector general of police (IGP), and others have been asked to comply with the rule.

The High Court bench of Justice Md Ashraful Kamal and Justice Kazi Waliul Islam passed the order on Tuesday after he...