On 27 January 2011, Yunus appeared in court in a food-adulteration case filed by the Dhaka City Corporation (DCC) Food Safety Court, accusing him of producing an "adulterated" yogurt whose fat content was below the legal minimum. According to Yunus's lawyer, the allegations are "false and baseless". At the request of Yunus's lawyers, pointing procedural irregularities and errors, this case is now considered by the High Court.
On 2 March 2011, Muzammel Huq – a former Bank employee, whom the government had appointed Chairman in January – announced that Yunus had been fired as Managing Director of the Bank. However, Bank General Manager Jannat-E Quanine issued a statement that Yunus was "continuing in his office" pending review of the legal issues surrounding the controversy.