Bangladesh reviews Adani contract as court awaits findings

Bangladesh is calling for a renegotiation or potential cancellation of its 25-year power purchase agreement with India’s Adani group, citing high electricity costs and contractual anomalies. This is according to a Reuters report.

The deal, signed in 2017, involves power supply from a $2 billion coal-fired plant in India’s Jharkhand state.

The controversy surrounding Adani’s power deal escalated after the Bangladesh High Court ordered an investigation into the contract.

According to Reuters, the investigation, expected to conclude by February, will examine potential irregularities, including allegations of corruption.

Bangladesh's interim government has launched a parallel review of power agreements in the country. Meanwhile, the Adani group has refuted the U.S. bribery allegations.

Adani Green Energy responded in an exchange filing that neither Gautam Adani, Sagar Adani, nor Vneet Jaain was named in the Department of Justice’s indictment, which is central to the ongoing controversy.

Gautam Adani also responded to the allegations.

While addressing the 51st Gem & Jewellery Awards, he said and I quote, ‘As most of you would have read less than 2 weeks back, we faced a set of allegations from the US about compliance practices at Adani Green Energy. This is not the first time we have faced such challenges. What I can tell you is that every attack makes us stronger and every obstacle becomes a stepping stone. Despite a lot of the vested reporting, no one from the Adani side has been charged with any violation of the FCPA or any conspiracy to obstruct justice. In today's world, negativity spreads faster than facts. As we work through the legal process, I want to reconfirm our absolute commitment to world-class regulatory compliance.’

(With inputs from Reuters)