DHAKA/NEW DELHI: The Bangladesh High Court on November 19 paused arbitration proceedings in Singapore between the country's power development board and India's Adani Power over a dispute involving power supply payments.

The company, led by Indian billionaire Gautam Adani, has been in a prolonged dispute with the Bangladesh Power Development Board (BPDB) over unpaid electricity bills under a 2017 agreement.

Both sides had agreed earlier this month to pursue international arbitration to settle the payment dispute. However, the court ruled that the process will remain on hold until a committee appointed by the High Court to review the fairness of the deal and investigate any possible irregularities submits its findings.

The court had ordered this expert review of the Adani contract last year.

Adani Power provides electricity from its 1,600-megawatt coal-fired Godda plant in eastern India, which supplies nearly 10% of Bangladesh's power demand.

"If Adani begins arbitration in Singapore before the investigation report is completed, the inquiry will become meaningless," said Abdul Qayyum, the lawyer who filed the injunction.

Bangladesh's interim government has previously accused Adani of violating the power purchase agreement by failing to pass on tax benefits granted to the Godda plant, Reuters reported in December.

During the fiscal year ending June 30, 2024, Bangladesh paid Adani a tariff of 14.87 taka (US$0.1220) per unit—significantly higher than the average 9.57 taka paid to other Indian suppliers.

An Adani Group spokesperson said the company had not yet reviewed the court order but emphasized that the agreement requires disputes to be settled through the Singapore International Arbitration Centre, which falls outside Bangladeshi court jurisdiction.