Chief Adviser Muhammad Yunus said that he relayed to Indian authorities that they could 'keep' ousted prime minister Sheikh Hasina, but stressed that her trial would go on.
He made the remarks in an interview with Singapore-based Channel NewsAsia (CNA) in Kuala Lumpur on 13 August during his three-day official visit to the Malaysian capital.
Since fleeing Dhaka in the face of the July Uprising last year, Hasina has found refuge in India.
In Bangladesh, she is on trial in absentia for various injustices, including the killing of ordinary citizens during last year's protests.
Yet, India has not responded to extradition requests. Neither has it managed to stop Hasina from disseminating statements online.
"(Indian Prime Minister Narendra Modi) explained that (India) could not control social media," Yunus said, referring to her repeated appearances on social media.
"We are not going to kind of get into a battle trying to get Hasina out of India. We said, 'You can keep her. Our trial will go on'.
"But in the meantime, she should not be given any chance to destabilise Bangladesh. She still has many followers within Bangladesh – they will follow the same thing that they did before to destabilise the whole country."
Yunus also said holding an election without ensuring reforms and justice would be a exercise pointless.
"Think about it. If we start with elections, we don't need reforms, we don't need justice. Because, if we have elections, it will all be over. Everything will go into the hands of the elected government. Imagine, you have elections without doing the other two things. Then you will go back to the same old problem."
He also said there would be no point in holding an election if it was illegitimate.
"There's no point in having elections if it's not legitimate. My job is to make sure that an acceptable, clean, enjoyable election takes place."
'We want good relationships with all'
Yunus further defended his government's approach to maintaining friendly ties with all regional powers, saying such decisions are economically driven and that Bangladesh is willing to work with anyone with an interest in investing in the country.
"We have good relationships with Pakistan and China, and we would also like to have a good relationship with India," he said.
"(This) is about investment opportunity, not something special to China. This is also offered to India, to anybody who would like to take advantage of it. It's just a fair game in business."
No plans to stay in politics
The Nobel peace laureate, who was thrust into the role following the revolution, said he was unwilling to take on the responsibility at first as de facto prime minister.
"(The student leaders) pleaded with me that so much blood has been shed … That kind of hit me in a way … After (they) made so many sacrifices, I should do something on my own too. So, I accepted the job," he recalled.
The 85-year-old also said he does not plan to stay on in government after the elections.
"I would hope that from now on, Bangladesh will be on the right track, it will not be derailed again," he said.
"Our voters couldn't vote for the last 15 years. Young people should be pouring in their votes and their aspirations into the ballot boxes. I would hope that there could be a good government, and it will follow the democratic principles."
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