Life Insurance Corporation of India (LIC) has denied the Washington Post report, in which LIC has been accused of Adani Group. This report said that government officials had made a plan in May, under which 3.9 billion dollars (Rs 33,000 crore) were invested from insurance company LIC in Adani group companies.
LIC It said in a statement that the claim that its investment decisions are influenced by external factors is ‘false, baseless and far from the truth’. LIC said that the insurance company never prepared any such proposal or document.
LIC further said that decisions regarding investment are taken independently as per the approval and rules by the Board. The Finance Ministry or any other body has no role in such decisions.
What were the allegations against LIC regarding Adani?
Washington Post has claimed in its report that the Finance Ministry hastily passed the proposal of investment of about $ 3.9 billion from LIC in Adani Group in May, that too at a time when this group, which does business from ports to energy, was deep in debt and was facing investigation in the US.
The Post reported that in May 2025, Adani Ports and SEZ raised Rs 5,000 crore through a 15-year non-convertible debenture (NCD) at a coupon rate of 7.75%, which was fully subscribed by LIC. APSEZ justified the issue by citing its ‘strong financial position’ and ‘AAA/stable domestic rating’ as investor confidence.
Political controversy increased after the report
Political controversy arose after this step. Opposition leader Rahul Gandhi, citing this report, accused the government of giving preference to this group. In a social media post in June 2025, he criticized this system and said, ‘The money, the policy, the premium are yours. Security, convenience, profit for Adani!’ The incident intensified the debate on corporate-government relations and alleged favoritism towards big business houses.
Attempt to tarnish reputation: LIC
LIC has said in its statement that it has ensured the highest standards of due diligence and all its investment decisions are in accordance with the existing policies, provisions of the Act and regulatory guidelines. Taken in the best interest of all stakeholders.
The country’s largest insurance company said the allegations made in the report are intended to damage LIC’s well-established decision-making process and tarnish its reputation and image, the strong foundation of the financial sector in India.
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