The High Court division of the Supreme Court of Bangladesh
The Bangladesh High Court has ordered Adani Group to halt plans to initiate arbitration in Singapore to resolve a payment dispute with the Bangladesh Power Development Board. The court issued the order to allow state authorities to conclude investigations into the power supply agreement.
In 2017, the Bangladesh government signed a power purchase agreement with Adani Power for 25 years, providing electricity from its Jharkhand-based plant.
The dispute arose when a petition filed before the High Court division of the Supreme Court of Bangladesh called the agreement “one-sided”. In November 2024, the court admitted the petition, and formed a committee to investigate the agreement over concerns of unfavourable terms, the high cost of electricity and withholding tax benefits.
Various media reports stated Adani Power charged 14 Bangladeshi Taka (USD0.11) per unit, which is higher than charges for Indian private producers.
The suspension on Adani Power from initiating arbitration in Singapore remains in force until the court formed committee submits its findings.
Adani Power, part of the Adani Group, is led by Gautam Adani. The Securities Exchange Board of India had recently cleared the group of allegations by US-based short-selling investment firm Hindenburg Research of using offshore funds to siphon public money.
