The Life Insurance Corporation of India (LIC) has categorically rejected a report by The Washington Post alleging that the Finance Ministry directed it to channel nearly $3.9 billion (around Rs 33,000 crore) into the Adani Group. According to LIC, the claims are “false, baseless and far from the truth,” stating that no such proposal or directive existed, and that all investment decisions are made independently according to board-approved policies, without interference from the Department of Financial Services (DFS) or any other government body.
The Washington Post report, citing internal documents, officials, and bankers, claimed that in May, the Finance Ministry expedited a plan instructing LIC to invest $3.4 billion in corporate bonds of Adani Group companies and an additional $507 million to increase stakes in subsidiaries such as Ambuja Cements and Adani Green Energy. The report suggested that government officials viewed Adani bonds as offering higher yields than 10-year government securities and aligned with LIC’s mandate and broader economic objectives.
The report also referenced the financial pressures on the Adani Group, including refinancing requirements and U.S. scrutiny over alleged sanctions violations and legal cases, including a 2024 indictment related to a $265 million bribery and fraud scheme. It noted that Adani Ports & SEZ had raised approximately $585 million via LIC-financed bonds. While LIC’s exposure to the Adani Group remains under 2% of the conglomerate’s total debt, the report claimed that government officials recommended spreading the investments across Adani subsidiaries to support economic objectives.
In response, the Adani Group dismissed any claims of “government plans” or preferential treatment. The group emphasized that LIC invests across multiple corporate entities, earning returns on its portfolio, and that suggesting preferential treatment is misleading. LIC itself accused the report of attempting to prejudice its decision-making process and tarnish its reputation.
The episode has drawn political attention, with Congress and Rahul Gandhi criticizing the alleged use of public funds. LIC, however, maintains that all decisions were taken independently and according to established policies, highlighting the company’s autonomy from government influence in its investment practices.
Overall, while the Washington Post’s reporting highlighted alleged interactions between the Finance Ministry and LIC regarding Adani Group investments, both LIC and Adani have strongly refuted any suggestion of government orchestration or preferential treatment.
