Bangladesh has appointed a British law firm to represent its state-run Power Development Board (BPDB) in mediation proceedings related to its dispute with Adani Power Limited over coal pricing and electricity tariffs. Officials confirmed this development on Friday, highlighting that the move comes amid ongoing disagreements over the cost of coal and power supplied by the Indian conglomerate.

According to BPDB officials, Bangladesh has appointed London-based law firm 3VP, which specialises in commercial and financial litigation, to represent the country at the Singapore International Arbitration Centre (SIAC). The officials stated that the firm would handle mediation proceedings connected to the dispute with Adani Power Limited.

The Bangladesh-based newspaper The Business Standard reported that the 3VP chambers, led by King’s Counsel Farhaz Khan, had been advising a national review committee on the Adani power deal for several months. The report noted that the committee had been examining the power sector agreements signed during the previous government led by Sheikh Hasina.

The decision to appoint the British law firm came shortly after the national review committee submitted its final report on power sector agreements signed under the Awami League government, which was later toppled. This development took place within five days of the committee presenting its findings.

A Power Division official explained the reason behind the move, saying, “Our move to appoint the British firm came as Adani Power initiated arbitration at Singapore International Arbitration last year.” The official further said that Adani Power had claimed around USD 485 million in unpaid dues linked to the disputed coal tariff.

Under the agreement between Bangladesh and Adani Power, mediation is a mandatory step before the matter proceeds to full arbitration. However, this mediation process is not legally binding.

Bangladesh has argued that Adani Power is charging an excessively high coal price, which has led to increased electricity generation costs. After the fall of the Hasina-led government on August 5, 2024, following violent student-led protests, BPDB stepped up its efforts to reopen negotiations with Adani Power.

The national review committee earlier stated that it had gathered strong evidence that could allow Bangladesh to initiate international legal proceedings against Adani Power Limited. Interim government officials also shared details about alleged irregularities linked to the deal.

Interim government’s energy adviser Fouzul Kabir Khan 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.” Officials also confirmed that the evidence had been shared with the Anti-Corruption Commission (ACC) for further investigation.

The review committee had submitted its interim report in November last year. At that time, the adviser had said that Bangladesh’s interim government, led by Muhammad Yunus, could cancel the existing power procurement contract with Adani if it was proven that the deal was reached through corrupt means.

The committee was headed by retired High Court judge Moinul Islam Chowdhury. He had earlier told reporters that the committee had prepared a separate report on the power purchase agreement with Adani Group as well.

An unnamed committee member, quoted by the state-run Bangladesh Sangbad Sangstha (BSS), said, “But we believe you will get strong evidence of corruption when a legal process begins at home and abroad against Adani and a few other companies related to Adani who are involved in this corruption.”

However, prominent jurist Shahdeen Malik cautioned the government about the risks involved in cancelling foreign contracts. He said that although there could be legal grounds to terminate such agreements, taking the matter to an international court might result in claims of up to USD 5 billion.

Adani Power currently supplies 1,600 megawatts of electricity to Bangladesh from its Godda power plant in Jharkhand. In terms of payments, Bangladesh cleared its outstanding dues by making a one-time payment of USD 437 million in June 2025. This payment settled all receivables up to March 31, 2025.

Earlier, Bangladesh had faced difficulties in paying dues, which had led Adani Power to reduce electricity supply. However, full supply was restored after the outstanding payments were cleared.

The appointment of the British law firm marks a significant step in Bangladesh’s efforts to address its dispute with Adani Power over coal pricing and power tariffs through international mediation and possible arbitration proceedings.