Enough evidence to take Adani to international arbitration 

Illustration: TBS

The national review committee probing power sector agreements signed during the ousted Awami League regime has gathered evidence strong enough for Bangladesh to initiate international legal proceedings against Adani Power Limited, committee members told The Business Standard yesterday.

The evidence includes both direct and circumstantial proof of bribery involving Bangladeshi officials during the deal-signing process, according to multiple members of the committee. Investigators have documented suspicious financial transactions routed through foreign bank accounts held by public servants, with detailed records covering account numbers, transaction dates and times, and beneficiary identities.

Committee members said the material has been independently examined and validated by a team of expert lawyers led by a UK-based King's Counsel, engaged by the Power Division on the committee's recommendation several months ago. After reviewing the evidence, the legal team concluded that Bangladesh has sufficient grounds to file a fraud case against Adani Power Limited for bribery and corrupt practices.

The committee formally disclosed its findings at a press briefing on Monday.

Evidence vetted by international legal experts

Speaking at the briefing, committee member Mushtaq Husain Khan, an economist at the University of London, said whistleblowers and international organisations monitoring Adani's global operations had been approached from the outset of the investigation.

"There are many organisations worldwide that closely track Adani and possess extensive research on its deals. They shared large volumes of information with us," Mushtaq said. "...much of it was highly credible — detailed, vivid documentation."

That information was subsequently assessed by international legal experts, who concluded that the evidence met the threshold required to pursue fraud and corruption charges in an international forum, he added.

"The Adani deal itself establishes prima facie evidence of corruption," Mushtaq said. "No rational politician or bureaucrat could have signed such a contract in good faith."

After the briefing, Power and Energy Adviser Fouzul Kabir Khan confirmed to TBS that the panel had collected concrete evidence of financial transactions linking Adani officials and Bangladeshi public servants.

"Yes, the committee has strong evidence to indict Adani," he said. "Money transactions took place between Adani officials and Bangladeshi officials, and the panel is ready to submit this evidence to court once legal proceedings begin."

He declined to specify the ranks or positions of the officials involved.

Findings shared with ACC

Committee member and former World Bank Dhaka office lead economist Zahid Hussain said the evidence, including circumstantial material, had already been shared with the Anti-Corruption Commission (ACC) for further investigation.

"Based on the evidence presented to the King's Counsel and the legal opinions we received, experts believe the government should, and most likely will, win the case," Zahid told TBS.

Earlier on Monday, Zahid described the Adani agreement as a "cancerous wound" during a TBS talk show, Kemon Sangsad Chai.

Officials allegedly involved

According to committee members, Ahmad Kaikaus, senior secretary during the deal period from 23 February 2017 to 19 December 2019, played a central role in advancing the agreement. Investigators allege that Adani officials approached him both domestically and overseas.

The review found substantial sums deposited in Kaikaus's foreign bank accounts. Analysis of transaction histories and travel patterns of Kaikaus and other officials indicated what the committee described as large-scale corruption, with several public servants personally benefiting during the negotiation and approval process.

Others named in the findings include former principal secretary to Sheikh Hasina Abul Kalam Azad; former Bangladesh Power Development Board (BPDB) chairmen Khaled Mahmud and Md Mahabubur Rahman; Power Grid Company managing director Golam Kibria; and multiple officials from the Power Division, BPDB, and Power Cell.

Both Kaikaus and Azad, former Power Division secretaries, later became principal secretaries to the prime minister. Kaikaus is currently living in the United States, while Azad is in jail in connection with multiple cases linked to alleged irregularities during the Awami League regime.

King's Counsel to advise on next steps

Committee chair Moinul Islam Chowdhury told TBS that, on the NRC's recommendation, the Power Division formed a specialised legal team led by a UK-based King's Counsel to advise on the Adani deal.

King's Counsel is an honorary designation for senior barristers or solicitors recognised for exceptional expertise, particularly in complex commercial, cross-border, and fraud-related litigation.

Moinul Islam said the committee's findings were strong enough to initiate proceedings at the Singapore International Arbitration Centre (SIAC), adding that alleged perpetrators had been questioned multiple times during the review process.

Strength of the bribery case

Mushtaq said the committee had collected unusually robust evidence by international standards.

"We have very specific details — names of beneficiaries, bank account information, identities of public servants, travel patterns, and transactional behaviour during the deal period," he said. "Several million dollars were mobilised."

UK-based fraud experts, he added, described the strength of the evidence as rare in corruption cases.

He stressed that any decision to cancel the Adani deal should prioritise Bangladesh's interests and be upheld regardless of changes in political leadership.

"We possess far more documentation than is normally required in a standard fraud case," Mushtaq said.

Referring to Adani's international track record, he cited ongoing legal proceedings in the United States over allegations of bribing Indian officials, the cancellation of a power deal memorandum of understanding in Sri Lanka, and scrutiny in other jurisdictions.

"Adani is known globally as a controversial business entity," he said, adding that the final decision on the deal would rest with the next elected government.

Currently, the US Securities and Exchange Commission and the Department of Justice are pursuing legal action against Gautam Adani in a New York federal court over alleged large-scale bribery and fraud.

Why the deal raised red flags

At Monday's briefing, Mushtaq identified three fundamental flaws in the Adani agreement: site selection, power pricing, and contractual terms.

The coal-fired plant was initially proposed for Moheshkhali in Cox's Bazar or Godda in India's Jharkhand state, but without any documented justification, it was ultimately built in Godda, he said.

"There was no technical discussion, documentation, or justification for the tariff," Mushtaq added, questioning why Bangladesh should pay taxes on electricity generated from a plant located in India.

He also noted that Bangladesh would bear the financial risk if the plant were damaged by political unrest inside India.

"Taking all these factors together, we concluded that the deal could only have been signed through corruption, there is no other plausible explanation," he said.

The Bangladesh Power Development Board and Adani Power Limited signed a 25-year power purchase agreement in November 2017 to import 1,496MW of electricity from Adani's 1,600MW coal-fired plant in Jharkhand. The first 800MW unit began operations in April 2023.

When contacted, 5w Communications, which handles public relations for Adani Power in Bangladesh, did not respond to messages or phone calls.