Bangladesh May Cancel Adani Power Deal Amid Corruption Allegations

Bangladesh's interim administration has signaled a potential cancellation of a power supply contract with India's Adani group amid corruption allegations. Energy Affairs Adviser Muhammad Fouzul Kabir Khan affirmed the government's stance, citing the discovery of irregularities.

The contract, inked in 2017, came under scrutiny after findings by a National Review Committee, formed to investigate previous power sector agreements led by the Hasina regime. Headed by retired High Court judge Moinul Islam Chowdhury, the committee reported massive governance failures and corruption.

The 2017 agreement committed Adani Power's Godda plant to supply electricity to Bangladesh for 25 years. Despite Bangladesh reducing its USD 437 million outstanding dues to Adani, legal complexities make unilateral cancellations challenging. Prominent jurist Shahdeen Malik has raised concerns over legal repercussions that could lead to hefty international claims.