LIC denies report linking government to its Adani investments

LIC denies government link to its Adani investments: State-owned insurer Life Ins. Corporation of India (LIC) dismissed allegations that government officials influenced its INR 325 bn (USD 3.9 bn) investments in Adani Group firms, saying all decisions are made independently and with due diligence, Bloomberg reports, citing a post on X.

Allegations: The clarification came after a Washington Post report claimed Indian government officials encouraged LIC to invest in Adani companies through a roadmap proposed in May 2025. The report alleged that the proposed plan involved around USD 3.4 bn in Adani Group bonds and about 500 mn in equity stakes across subsidiaries including Adani Green Energy and Ambuja Cements. It alleged that the proposal was discussed between the Department of Financial Services (Finance Ministry), federal government think tank NITI Aayog, and LIC to help the conglomerate refinance debt. The report raised concerns over the use of public-sector funds to support politically connected businesses.

LIC rebuttal: LIC called the allegations “false and baseless,” adding that no such plan or document outlining any roadmap for infusing funds into Adani companies exist in its records.

Policy and process: The insurer said all its investments are guided by board-approved policies, undertaken after detailed due diligence and in compliance with regulations. It added that neither the Department of Financial Services nor any other government body plays any role in its investment decisions.

Company exposure: LIC was the sole buyer in Adani Ports & Special Economic Zone’s record INR 50 bn (USD 569 mn) bond sale in May 2025, and has also invested in Adani Enterprises Ltd. and other Adani Group entities.

Broader context: The statement comes amid ongoing scrutiny of Adani Group’s financial dealings following the 2023 Hindenburg Research report. In September 2025, the Securities and Exchange Board of India cleared several allegations, including those related to stock manipulation and related-party transactions, while other investigations remain open. India’s tax department is also probing Adani Defence & Aerospace for alleged import-duty evasion linked to missile-component shipments, Reuters reports.

Following the US daily’s report, opposition party Indian National Congress demanded a parliamentary probe, accusing the Modi government of allowing LIC policyholders’ funds to be used to benefit Adani Group, according to The Economic Times.