No chairman, no salaries: Legal notice served over IDRA crisis

Staff Correspondent: A legal notice has been served on the government seeking urgent intervention to resolve ongoing administrative and financial deadlock at the Insurance Development and Regulatory Authority (IDRA), Bangladesh’s insurance sector regulator.

The notice, titled a ‘Demand Justice Notice,’ was sent on Monday (April 6) by Supreme Court lawyer Tanoy Kumar Saha in the public interest. It was addressed to the Secretary of the Ministry of Finance and the Secretary of the Financial Institutions Division.

According to the notice, the crisis began after IDRA Chairman Dr M Aslam Alam resigned on March 2, 2026, citing personal reasons. More than a month has passed since his resignation, yet no new chairman or acting chairman has been appointed by the government.

Although the authority currently has four members, none has been assigned leadership responsibilities. As a result, IDRA’s operations have effectively come to a standstill, triggering both administrative and financial disruptions.

The notice highlights that officials and employees of the authority have not received their salaries, a situation described as deeply concerning. It argues that withholding salaries violates fundamental rights guaranteed under Articles 27 and 31 of the Constitution, including equality before the law and the right to life.

The notice further states that under the Insurance Development and Regulatory Authority Act, 2010, the government is obligated to ensure the proper functioning of the regulator. Leaving the top position vacant has created legal uncertainty and administrative disorder.

The deadlock has also halted critical regulatory activities such as issuing and renewing insurance licences and resolving disputes. This has adversely affected policyholders and poses a broader risk to the national economy, the notice warns.

The government has been given seven days to appoint a new chairman or designate one of the existing members as acting chairman. Failure to take action within this timeframe will lead to the filing of a writ petition before the High Court under Article 102 of the Constitution.

Advocate Tanoy Kumar Saha said the prolonged leadership vacuum and salary suspension reflect more than administrative inefficiency. “This situation is extremely alarming for a key national sector. A regulator cannot remain without leadership, and denying employees their basic rights undermines confidence in the insurance industry and harms policyholders,” he said.