Indian billionaire Adani faces scrutiny as Bangladesh flags power deal irregularities

NEW DELHI, India (MNTV) — A government-commissioned review in Bangladesh has found procedural violations and possible corruption in several major power sector deals — including one with Adani Power, the Indian conglomerate owned by billionaire Gautam Adani, a close ally of Prime Minister Narendra Modi.

The interim report, submitted by a six-member national committee last week, described “massive corruption, collusion, and irregularities” in contracts signed under the Sheikh Hasina led Awami League government, which ruled Bangladesh for more than a decade.

The findings renew scrutiny of Adani’s operations abroad at a time when the group faces ongoing allegations of corporate misconduct and political favoritism in India and the United States.

Investigators said the Adani Power (Jharkhand) Limited deal — which supplies electricity from eastern India to Bangladesh — was riddled with “procedural flaws.”

According to The Daily Star, committee members revealed that Adani Power had drafted parts of its own agreement, and that officials at the Bangladesh Power Development Board were instructed by senior bureaucrats to sign it under political pressure.

The report, titled “Bangladesh’s Power Generation: Trapped in Costly Contracts and Massive Governance Failures in a Rent-Rich Sector,” noted that many contracts guaranteed high investor profits with “zero risk” clauses that burdened public finances.

Committee head Moyeenul Islam Chowdhury, a former Supreme Court justice, said the team found a “nexus of political leaders, bureaucrats, and private firms” manipulating power purchase agreements to favor corporate interests.

While the report stops short of naming Adani directly in corruption charges, its findings echo earlier criticism that the 2017 Adani-Bangladesh deal forced Dhaka to pay some of South Asia’s highest tariffs for imported electricity. Energy economists have long argued that the agreement was structured to protect Adani’s profit margins at the expense of Bangladeshi consumers.

When asked whether the Adani Power contract could be cancelled, Power Adviser Muhammad Fouzul Kabir Khan said the report outlines specific procedures. He explained that Bangladesh would face heavy financial penalties if it withdrew “without cause,” but could terminate the deal if corruption were established. “Most of the contracts declare themselves corruption-free,” he noted. “If we find evidence of graft, we will not hesitate to cancel them.”

The review also recommended that the Anti-Corruption Commission of Bangladesh further investigate the Adani Power deal, noting that officials linked to the Prime Minister’s Office interfered repeatedly in contract approvals.

For Adani, the findings add to a growing list of controversies. In early 2023, the U.S.-based investment firm Hindenburg Research accused the Adani Group of stock manipulation, accounting fraud, and using offshore shell companies to inflate valuations — allegations that wiped out over $100 billion in market value at the time. Adani denied the charges, calling them “malicious,” but investigations continue in multiple jurisdictions.

Analysts say the Bangladesh revelations underscore the group’s expanding political shield across South Asia, mirroring India’s broader model of state-backed corporate power.

The Bangladeshi committee has urged the government to make all current and future power contracts public and to renegotiate deals that extract “excessive profits.” Officials say cancellation could trigger compensation clauses unless corruption is formally proven.

For now, Adani Power continues to export electricity to Bangladesh while the country’s Anti-Corruption Commission investigates the deal. The findings have reignited debate over how far India’s politically connected corporations extend their influence beyond national borders