LIC Refutes Washington Post Report on $3.9 Billion Adani Investment Claim
New Delhi — The Life Insurance Corporation of India (LIC) has categorically denied allegations made in a recent Washington Post report that claimed India’s Finance Ministry expedited a plan to channel nearly $3.9 billion (₹33,000 crore) of the state-owned insurer’s funds into companies belonging to the Adani Group.
In an official statement released on Saturday, LIC dismissed the report as “false, baseless and far from the truth,” asserting that its investment decisions are made independently, without any external influence. The insurer clarified that no such proposal or document directing it to invest in the Adani Group had ever been prepared or discussed.
“The investment decisions are taken by LIC independently as per Board-approved policies. The Department of Financial Services or any other body does not have any role in such decisions,” the statement read. The corporation further maintained that the allegations were made with the intent to prejudice its established decision-making process and tarnish its image as India’s largest and most trusted insurer.
The Washington Post report, citing documents purportedly from the Department of Financial Services (DFS) and LIC, alleged that government officials coordinated a plan in May to direct $3.4 billion into corporate bonds issued by the Adani Group, along with an additional $507 million to raise LIC’s stakes in several Adani subsidiaries. The report suggested that these recommendations were approved to “align with LIC’s mandate” and “support India’s economic objectives,” despite internal warnings about the volatility of Adani Group securities.
It further claimed that the proposal, said to be jointly coordinated by the DFS and NITI Aayog, was meant to help the Adani conglomerate refinance existing debt and strengthen market confidence amid ongoing scrutiny in the United States.
The Adani Group, responding to The Washington Post, also rejected the allegations of any “government plans” or “preferential treatment” from LIC. “We categorically deny involvement in any alleged government plans to direct LIC funds,” the company said, adding that LIC invests across multiple corporate groups and has earned returns from its exposure to Adani’s portfolio.
Industry experts note that LIC currently holds less than 2 per cent of the Adani Group’s total debt exposure, a figure that remains small in proportion to its overall investment portfolio of more than ₹41 lakh crore. The insurer has long maintained that its investments are diversified across sectors and guided by a rigorous internal framework to ensure safety, returns, and liquidity.
The controversy has drawn political attention as well, with opposition leaders calling for transparency and accountability in the management of public funds. Congress leader Rahul Gandhi had earlier criticized LIC’s bond purchase from Adani Ports and SEZ, describing it as a “misuse of public money.” – News Agency