State-run insurer Life Insurance Corporation of India (LIC) on Saturday strongly denied allegations made in a report by The Washington Post that claimed Indian officials had drafted a proposal to channel approximately $3.9 billion (Rs 32,000 crore) from LIC into companies owned by the Adani Group.
Terming the allegations “false, baseless, and far from truth,” LIC said no such proposal or document had ever been prepared by the insurer or the government. The state-owned company asserted that its investment decisions are entirely independent and made strictly as per board-approved policies after detailed due diligence.
“The allegations levelled by The Washington Post that the investment decisions of LIC are influenced by external factors are false,” LIC said in an official statement. “No such document or plan as alleged in the article has ever been prepared by LIC that creates a roadmap for infusing funds into Adani group companies.”
The insurer further claimed the article appeared to have been written with “intentions to prejudice” LIC’s well-established decision-making process and “tarnish its reputation” along with that of India’s financial institutions. It reiterated that the Department of Financial Services (DFS) or any other government agency does not play a role in its investment decisions.
LIC emphasised that it maintains the highest standards of due diligence and that all investments are made in accordance with existing laws, internal policies, and regulatory guidelines — prioritising the interests of policyholders and stakeholders.
What the report said
The Washington Post investigation, authored by Pranshu Verma and Ravi Nair, alleged that Indian finance ministry officials fast-tracked a proposal in May 2025 to direct LIC investments worth $3.9 billion to Adani Group entities despite known risks. The report cited internal documents and interviews with serving and former government officials, along with three bank executives familiar with Adani Group’s finances.
According to the report, the Union Finance Ministry proposed that LIC spread its bond investments — estimated at $3.4 billion — between Adani Ports and Special Economic Zone Ltd (APSEZ) and Adani Green Energy Ltd, citing their higher yields compared to 10-year government securities. It also alleged that LIC was encouraged to increase equity holdings in Adani subsidiaries such as Ambuja Cements and Adani Green Energy.
The investigation further claimed the DFS and NITI Aayog coordinated the proposal, which was later approved by the Finance Ministry, despite internal concerns over the volatility of Adani Group securities.
Background
In May 2025, Adani Ports and SEZ raised Rs 5,000 crore through a 15-year non-convertible debenture (NCD) issue with a 7.75% coupon rate, which was fully subscribed by LIC. APSEZ described the move as being “backed by strong financials and a AAA/Stable domestic rating.”
The issue reignited political criticism, with Rahul Gandhi, Leader of the Opposition, accusing the government of favouring the conglomerate. In a social media post in June 2025, he wrote, “Money, policy, premium are yours; security, convenience, benefit for Adani!”
