HC orders Adani not to proceed with arbitration on payment dispute

High Court has ordered India’s Adani Group not to proceed with arbitration in Singapore over a contentious power purchase duspute with Bangladesh until a government investigation into the deal is completed.

An HC bench of Justice Md Bazlur Rahman and Justice Urmee Rahman issued the suspension on Wednesday responding to a petition filed by Supreme Court lawyer M Abdul Kaiyum.

Kaiyum said he had earlier served a legal notice on the Power Development Board (PDB) chairman and the energy secretary, demanding that the “one-sided” contract with Adani be reviewed or cancelled. When no action was taken, he sought a High Court directive to halt the agreement.

Referring to the ongoing investigation into the contract, he said: “If Adani starts arbitration proceedings in Singapore over its dues before the investigation report is released, then it will undermine the significance of the investigation. That’s why we sought the injunction. There have been many irregularities in this agreement.”

The Anti-Corruption Commission (ACC) is already investigating allegations that the agreement, signed under the previous Awami League government, bypassed the National Board of Revenue (NBR) and granted Adani duty and tax exemptions worth about Tk 4.5 billion.

The ACC has appointed Deputy Director Rezaul Karim to probe allegations against former principal secretary Ahmad Kaikaus, who was power and energy secretary during the negotiations, as well as the PBD and other officials involved.

A separate NBR probe earlier found evidence of around $40m in unpaid duties linked to Adani’s electricity imports, and concluded that the company had been granted exemptions without proper authorisation.