Bangladesh HC orders formation of committee to review Adani Power deal

The court also issues a rule asking why the deal should not be reconsidered or cancelled

The High Court has ordered the constitution of a high-level inquiry committee to reassess Bangladesh's electricity purchase agreement with India’s Adani Power.

The court also called for the submission of all documents related to the negotiations preceding the agreement's signing and issued a rule questioning why the deal should not be reconsidered or scrapped.

The bench of Justice Farah Mahbub and Justice Debashish Roy Chowdhury issued the order on Tuesday.

Advocate Md Abdul Kaiyum, representing the petitioners, said, “A power purchase agreement was signed with India’s Adani Group to procure 1,600 megawatts of electricity. Experts, civil society members, and anti-corruption organisations have criticised the agreement as one-sided, detrimental to Bangladesh’s interests and inconsistent with public policies.

“We had previously served a notice to the government to reconsider or cancel the unfair agreement. As no action was taken, we filed this writ petition.”

After hearing from both parties, the court questioned why directives should not be issued to reconsider or cancel the deal, Kaiyum added.

The court issued three key directives. One of them requires the submission of all minutes related to the negotiations with Adani Group before the signing of the agreement within one month.

Another directive mandates the formation of a high-level committee comprising internationally reputed energy and legal experts to analyse the agreement for any clauses detrimental to Bangladesh’s interests. The committee must submit its findings within two months.

The authorities were also instructed to establish a committee to investigate the processes behind the agreement and submit their findings.

The Power Division signed the agreement with Adani Power, a subsidiary of the Adani Group, on Nov 5, 2017. Under the agreement, Adani Power constructed a power plant in Jharkhand's Godda to supply electricity to Bangladesh.

To transmit the electricity to the national grid, special transmission lines were installed. The Power Grid Company of Bangladesh (PGCB) built two substations and other infrastructure in Chapainawabganj and Bogura.

Power supply from the first unit of Adani Power's Godda plant began on Mar 9, 2022.