NBR launches probe into Adani power deal irregularities
The National Board of Revenue has initiated an investigation into potential irregularities surrounding the import of 2,656 MW of electricity from India, including electricity sourced from the Adani Group.
The probe will focus on issues related to duties, taxes, and compliance with customs regulations in the power import agreement, as well as any errors or exemptions granted.
Concerns have been raised that India may not have adhered to customs laws during the import process. Reports indicate that no bill of entry was submitted for the electricity imports, a violation of customs requirements. Additionally, the Gautam Adani-owned Adani Group has been accused of supplying electricity at a price higher than the market rate.
In response, the NBR issued an order on Thursday (September 5) to form an eight-member committee to investigate these concerns.
The committee was established with approval from the Director General of the Customs Intelligence and Investigation Department, Mohammad Fakhrul Alam, and will begin its inquiry on Sunday (September 8). The committee is tasked with submitting a report within a month, scrutinising payment processes, unit prices, applicable duties, and tax compliance as per customs law.
The power purchase agreement between the Power Department of Bangladesh and Adani Power was signed on November 5, 2017.
Under the agreement, Adani Power constructed a power plant in Godda, Jharkhand, India, to supply electricity to Bangladesh.
On March 9 of last year, electricity from the plant began to be transmitted to Bangladesh’s national grid. To facilitate this, special transmission lines and substations were built by the Power Grid Company of Bangladesh (PGCB) in Chapainawabganj and Bogura.
The previous Awami League government signed multiple agreements with Indian entities to import around 2,656 MW of electricity through various routes, including Bheramara, Cumilla, and Chapainawabganj. However, clearance was only issued for 250 MW of these imports, raising further concerns about the legitimacy of the remaining power imports.
The NBR has yet to find evidence of duty-tax exemptions for these electricity imports, and no bill of entry has been submitted at the relevant customs stations as required by law.
The committee, led by Joint Director Edip Billah of the Customs Intelligence Directorate, will focus on identifying customs tax evasion. Md Mizanur Rahman, deputy director, has been named member secretary of the committee, along with six additional officials from the NBR.
