The High Court has directed the authorities concerned, including the National Board of Revenue (NBR), to take necessary steps to recover Tk 666 crore in unpaid taxes from Grameen Kalyan, an organisation founded by former interim government Chief Adviser Dr Muhammad Yunus, swiftly.

The court also vacated a stay order previously issued on the tax demand.

The full text of the High Court verdict delivered on September 10 last, dismissing separate writ petitions filed by Grameen Kalyan, was published on the Supreme Court website on Monday.

In its observations, the court described the case as a “classic case of tax evasion by keeping a settled issue pending”.

Grameen Kalyan filed two separate writ petitions in 2017 challenging the legality of the NBR's tax demands for the assessment years 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17.

Following preliminary hearings, the High Court issued a rule and stayed the tax demand decisions.

After reassessment, the High Court dismissed the separate writ petitions on August 4, 2024, challenging the validity of the tax commissioner's decision to demand Tk 666 crore for the five assessment years.

The verdict was delivered by a bench of Justice Muhammad Khurshid Alam Sarkar and Justice SM Moniruzzaman. The Awami League government fell the following day, on August 5.

On August 29, 2024, another High Court bench, comprising Justice Mohammad Khurshid Alam Sarkar and Justice Sardar Md Rashed Jahangir, recalled the August 4 verdict and sent the case records to the Chief Justice, who subsequently assigned a new bench to deal with the matter.

On September 10 last, the High Court ruled that Grameen Kalyan must pay the Tk 666 crore claimed by the NBR. The verdict was delivered by a bench of Justice Md Mujibur Rahman Mia and Justice Rezaul Karim.

In its full verdict, the court said the petitioners had no legal basis to maintain the petitions.

Barristers Abdullah Al Mamun and Fida M Kamal represented Dr Yunus in court, while Deputy Attorney General Abdus Samad Azad appeared for the state.

Mamun told reporters that they will appeal against the verdict before the Appellate Division after receiving the full text of the judgement.

Explaining the background of the dispute, Deputy Attorney General Abdus Samad Azad said Grameen Kalyan and Grameen Telecom had reached an agreement under which Grameen Telecom would provide financial assistance to Grameen Kalyan.

In return, Grameen Telecom would pay Grameen Kalyan 42.50 percent of the profit earned from dividends on Grameen Kalyan's shares, he said.

The income tax authorities later reopened the file and found that Grameen Kalyan had not deducted tax at source on the profit it received from Grameen Telecom, prompting the reassessment.

Following a review by the tax commissioner, Grameen Kalyan filed a writ petition with the High Court challenging the decision.