The Bangladesh Bank (Demonetisation of Currency Notes) Order, 1972 (President's Order)

Act No. PRESIDENT'S ORDER NO. 20 OF 1972

Date: [4th March, 1972]

WHEREAS large quantity of currency notes has been illegally removed by Pakistan occupation forces, from the Government Treasuries, former State Bank of Pakistan and from offices and branches of banks located in Bangladesh before their surrender to the Allied Armed Forces; AND WHEREAS such illegally acquired currency notes are likely to have been passed on by them to be used for activities prejudicial to the National Economy; AND WHEREAS it is expedient to withdraw from circulation currency notes of certain denomination; NOW, THEREFORE, in pursuance of the Proclamation of Independence of Bangladesh, 1971, read with the Provisional Constitution of Bangladesh Order, 1972, and in exercise of all powers enabling him in that behalf, the President is pleased to make and promulgate the following Order:-

This Order shall come into force at once and shall take effect notwithstanding anything inconsistent therewith in any other law for the time being in force.

All Pakistan currency notes of Rs. 50 denomination, which were made legal tender in Bangladesh in pursuance of Bangladesh Bank (Temporary) Order, 1971, dated the 25th December 1971, made and promulgated by the Acting President of the People's Republic of Bangladesh, shall on the 5th March, 1972, cease to be legal tender within the meaning of the State Bank of Pakistan Act, 1956 (XXXIII of 1956) as adapted in Bangladesh.

All holders of currency notes specified in paragraph 2 shall surrender them to any of the branches of the scheduled banks or to any Head Post Office and Departmental Sub-Post Office in Bangladesh on the following dates:-

Monday the 6th March, 1972

Tuesday the 7th March, 1972

Wednesday the 8th March, 1972

whereafter these currency notes shall not be accepted.

Branches of the scheduled banks and collecting agencies mentioned in paragraph 3 shall record the name and address of the person surrendering them and value of such currency notes and shall give a proper receipt to the person surrendering them.

(1) The Government of the People's Republic of Bangladesh shall set up a committee or committees as it may deem fit and such committee or committees shall decideÔÇö

(a) which of the currency notes surrendered under paragraph 3 were illegally acquired or illegally removed from the former State Bank of Pakistan or any of its branches or from any office or branch of any other bank or any Government Treasury; and

(b) whether any person surrendering any such currency notes has evaded any tax payable to the Government.

(2) A committee or committees so appointed may frame rules and regulations or may issue such directives as it may deem necessary for the performance of its function.

(3) The committee may exempt tenders of demonetised notes of any specific amount or tenders made by any category of persons exempt from scrutiny.

(4) The decision of a committee under sub-paragraphs (1), (2) and (3) shall be final.

A person who has surrendered any currency notes under paragraph 3 shall on production of the receipt issued to him under paragraph 4, be entitled to receive, on such dates as may be notified by the Bangladesh Bank in the official Gazette or otherwise, the amount equivalent to the value of the currency notes so surrendered by him from such bank or agency as may be mentioned in the notification, provided -

(a) the currency notes surrendered by him have not been found by the committee to have been illegally acquired or illegally removed from any branches of the former State Bank of Pakistan or from any office or branch of any other bank or from any Government Treasury; and

(b) such person has been found by the committee not to have evaded any tax payable to the Government.

The Government of the People's Republic of Bangladesh and/or Bangladesh Bank, for the purpose of this Order, may make such rules or issue such directives to such person or authority as it may deem necessary, and it would be mandatory for such persons or authority to execute such rules or directives as may be issued by the Government or Bangladesh Bank under this clause.

No provision of this Order, nor any action taken thereunder, shall be called in question by or before any court of law.

Whoever fails to take any action required of him by this Order or by any rule made or direction issued under paragraph 7 or furnishes false information to the person receiving the surrendered currency notes or to the committee set up under paragraph 5 of this Order shall be punishable with rigorous imprisonment which may extend to three years' or with fine or with both.

¹10. Notwithstanding anything contained in this Order or any other Order or Law in force, the Bangladesh Bank may with the approval of the Government pay exchange value of demonetised Pakistani Currency Notes of Rs. 50 denomination, which were held by Courts or Customs Authorities (including those of Indian Courts and Customs Authorities seized between the 26th of March, 1971 and 16th December, 1971) as alamats or exhibit or as pieces of evidence and were released after the 8th of March, 1972, subject to production of evidence to the satisfaction of the authorities concerned.

Footnotes

1.Article 10 was inserted by Article 2 of the Bangladesh Bank (Demonetisation of Currency Notes) (Amendment) Order, 1972 (President’s Order No. 119 of 1972)