Renowned Economist Prof. Muhammad Yunus Sentenced to 6 Months in Jail

Nobel laureate Dr Muhammad Yunus talks to journalists at Dhaka Labour Court 3 on Monday, January 1, 2024.

In a surprising turn of events, Nobel laureate Prof. Muhammad Yunus and three high-ranking officials of Grameen Telecom were sentenced to six months in jail yesterday by a Dhaka labour court. The charges stemmed from alleged violations of labour laws, including the appointment of employees on a contractual basis without providing due benefits.**

After the verdict, the Third Labour Court of Dhaka Chairman Sheikh Merina Sultana granted a month's bail to Prof. Yunus and the three officials, namely Ashraful Hassan, Nurjahan Begum, and M Shahjahan, following separate bail petitions. The court also imposed a fine of Tk 30,000 each, with an additional 25 days of imprisonment in default.

The court directed the convicted individuals to comply with the relevant sections of the Labour Act, 2006, within a month. State counsel Khurshid Alam Khan asserted that the convictions resulted from the failure to regularize jobs and provide benefits as per the labor laws.

Prof. Yunus expressed his dissatisfaction with the verdict, declaring, "I have been punished for a crime I did not commit. If you want to call it justice, you can." He questioned the timing, stating his disappointment on the first day of the English year.

The case originated from an inspection conducted by the Department of Inspection for Factories and Establishments (DIFE) in August 2021, revealing labor law violations at Grameen Telecom. The company was accused of not regularizing the job status of 67 employees and neglecting to establish employees' participation and welfare funds.

Yunus's defense emphasized his non-executive role and asserted that the company operates on a contractual basis with Nokia Phone, renewing employee contracts based on the company's agreement with Nokia. The defense also highlighted that employees receive provident fund, gratuity, and other benefits despite contractual arrangements.

While Yunus faced imprisonment, it was revealed that Grameen Telecom had previously settled out of court with employees for Tk 437 crore, acknowledging the settlement in May 2023. The defense argued that Yunus has no shares in the company's profits and that any surplus funds are reinvested.

Human rights activist Barrister Sarah Hossain raised concerns about the trial's unprecedented speed and the judge's unusual decision not to read the entire judgment in open court. The case has drawn attention due to its association with Prof. Yunus, a globally recognized figure for his work in microfinance and poverty alleviation.