The Customs Intelligence and Investigation Directorate (CIID) has initiated an in-depth review of the Power Development Board (PDB) of Bangladesh’s agreement for importing electricity from India’s Adani Group. The investigation primarily scrutinizes potential exemptions or waivers granted on customs duties during the import process.

A team of eight officials, led by Joint Director Adip Billah, has been commissioned to conduct a thorough review of the customs procedures involved in the electricity imports from Adani. The CIID Director General, Mohammad Fakhrul Alam, authorized the creation of this investigative committee on Thursday.

Gautam Adani, a billionaire embroiled in allegations of significant stock market misconduct and noted for his proximity to Indian Prime Minister Narendra Modi, has developed a power facility in Godda, Jharkhand. This plant, located near West Bengal's border, is designed to supply electricity to Bangladesh.

Concerns have been raised about the pricing strategies employed by Adani, particularly the allegations of overcharging Bangladesh for coal used at the Godda plant. These concerns precipitated a bilateral meeting in February of the previous year.

Furthermore, Indian media outlets have reported that Adani’s operations might be yielding twice the profit margins from these electricity sales to Bangladesh. This has spurred demands for the termination of what is perceived as a costly deal brokered during the tenure of the now-deposed Prime Minister Sheikh Hasina.

With these controversies in the backdrop, the CIID's inquiry aims to determine any potential missteps or irregularities concerning the taxation and duties stipulated in the power supply contract with Adani.

Billah outlined the scope of the investigation to bdnews24.com, noting that the probe would begin with a detailed examination of the contract specifics with Adani, including the customs declarations and the customs stations utilized for the electricity imports.

The investigative team will also assess whether the HS code used for these imports aligns with the provisions of the Customs Act. They plan to scrutinize the applicability of duties and taxes on the imported electricity, including how much has been levied and paid to date.

Additionally, the inquiry will explore any agreements on duty waivers for the imports and whether any pertinent notifications or orders have been issued.

The probe will include checks on the customs houses or stations through which the electricity was imported, the procedures adhered to, the submission and legal settling of any bills of entry, and whether the National Board of Revenue (NBR) had assigned specific departments to handle the customs clearance for this import.

Md Mizanur Rahman, CIID Deputy Director, will serve as the committee's member-secretary, with other members including Deputy Director Munmun Akhtar Dina, Revenue Officer Mozammel Haque Bhuiyan, Revenue Officer Palash Kumar Mallik, Assistant Revenue Officer Asaduzzaman, Assistant Revenue Officer Md Abul Kashem, and Assistant Revenue Officer Md Sahed Hasan Limon.

The committee is set to commence its work on Sunday and is expected to deliver a report on its findings within 30 working days. The team also holds the authority to co-opt additional members as required.

This investigation follows the power purchase agreement inked on November 5, 2017, between the Power Division and Adani Power, which led to the construction of a power plant in Jharkhand and a special transmission line to connect the electricity supply to Bangladesh’s national grid. The Power Grid Company of Bangladesh (PGCB) has also developed two substations and additional transmission infrastructure in Chapainawabganj and Bogura to facilitate this import.