Bangladesh Court Halts Adani Arbitration Pending Probe
ECONOMY & POLICY

Bangladesh Court Halts Adani Arbitration Pending Probe

Bangladesh’s High Court on Thursday ordered India’s Adani Group to halt its planned international arbitration in Singapore over a payment dispute with the state-run Bangladesh Power Development Board (BPDB). The suspension will remain in place until an investigation into Adani’s power supply agreement is completed.

Court officials said a two-judge bench directed that arbitration be paused until a committee appointed by the court submits its findings on the power purchase agreement and any potential irregularities. The order followed a petition seeking judicial intervention to review and scrap the BPDB–Adani deal, which the petitioner described as “one-sided” and signed during the tenure of former prime minister Sheikh Hasina.

The petition argued that Adani’s tariff was significantly higher than regional benchmarks — with electricity from Indian state-owned firms priced at 5.5 taka per unit, from other private Indian firms at 8.5 taka, and from Nepal at 8 taka, compared with more than 14 taka per unit for Adani’s supply.

The injunction comes even as BPDB and Adani continue negotiations over payment disputes. Bangladesh’s interim administration led by Professor Muhammad Yunus has previously accused Adani of breaching the power purchase agreement by withholding tax benefits received for the Godda plant in India. Bangladesh paid Adani 14.87 taka (USD 0.122) per unit in the fiscal year ending 30 June 2024 — well above the 9.57 taka average paid to other Indian suppliers.

Earlier this month, Adani Power said it had opted for international arbitration to resolve disagreements over unpaid dues under the 2017 contract. “There are disagreements in the way certain cost elements are calculated and billed… both partners have agreed to invoke the dispute resolution process,” an Adani spokesperson said.

Bangladesh’s energy adviser, Muhammad Fouzul Kabir Khan, confirmed that negotiations were ongoing and suggested arbitration could still be an option, but the High Court order has temporarily blocked that route. Petitioner Abdul Kaiyum argued that allowing arbitration to proceed before the investigative report is released would undermine the inquiry’s significance.

Adani Power supplies electricity from its 1,600-megawatt coal-fired Godda plant in eastern India, which meets nearly one-tenth of Bangladesh’s total power demand.

Bangladesh’s High Court on Thursday ordered India’s Adani Group to halt its planned international arbitration in Singapore over a payment dispute with the state-run Bangladesh Power Development Board (BPDB). The suspension will remain in place until an investigation into Adani’s power supply agreement is completed. Court officials said a two-judge bench directed that arbitration be paused until a committee appointed by the court submits its findings on the power purchase agreement and any potential irregularities. The order followed a petition seeking judicial intervention to review and scrap the BPDB–Adani deal, which the petitioner described as “one-sided” and signed during the tenure of former prime minister Sheikh Hasina. The petition argued that Adani’s tariff was significantly higher than regional benchmarks — with electricity from Indian state-owned firms priced at 5.5 taka per unit, from other private Indian firms at 8.5 taka, and from Nepal at 8 taka, compared with more than 14 taka per unit for Adani’s supply. The injunction comes even as BPDB and Adani continue negotiations over payment disputes. Bangladesh’s interim administration led by Professor Muhammad Yunus has previously accused Adani of breaching the power purchase agreement by withholding tax benefits received for the Godda plant in India. Bangladesh paid Adani 14.87 taka (USD 0.122) per unit in the fiscal year ending 30 June 2024 — well above the 9.57 taka average paid to other Indian suppliers. Earlier this month, Adani Power said it had opted for international arbitration to resolve disagreements over unpaid dues under the 2017 contract. “There are disagreements in the way certain cost elements are calculated and billed… both partners have agreed to invoke the dispute resolution process,” an Adani spokesperson said. Bangladesh’s energy adviser, Muhammad Fouzul Kabir Khan, confirmed that negotiations were ongoing and suggested arbitration could still be an option, but the High Court order has temporarily blocked that route. Petitioner Abdul Kaiyum argued that allowing arbitration to proceed before the investigative report is released would undermine the inquiry’s significance. Adani Power supplies electricity from its 1,600-megawatt coal-fired Godda plant in eastern India, which meets nearly one-tenth of Bangladesh’s total power demand.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement