State-run insurer Life Insurance coverage Company of India (LIC) on Saturday strongly denied allegations made in a report by The Washington Submit that claimed Indian officers had drafted a proposal to channel roughly $3.9 billion (Rs 32,000 crore) from LIC into corporations owned by the Adani Group.
Terming the allegations “false, baseless, and much from reality,” LIC stated no such proposal or doc had ever been ready by the insurer or the federal government. The state-owned firm asserted that its funding selections are solely impartial and made strictly as per board-approved insurance policies after detailed due diligence.
“The allegations levelled by The Washington Submit that the funding selections of LIC are influenced by exterior elements are false,” LIC stated in an official assertion. “No such doc or plan as alleged within the article has ever been ready by LIC that creates a roadmap for infusing funds into Adani group corporations.”
The insurer additional claimed the article appeared to have been written with “intentions to prejudice” LIC’s well-established decision-making course of and “tarnish its repute” together with that of India’s monetary establishments. It reiterated that the Division of Monetary Providers (DFS) or some other authorities company doesn’t play a task in its funding selections.
LIC emphasised that it maintains the very best requirements of due diligence and that every one investments are made in accordance with present legal guidelines, inside insurance policies, and regulatory tips — prioritising the pursuits of policyholders and stakeholders.
What the report stated
The Washington Submit investigation, authored by Pranshu Verma and Ravi Nair, alleged that Indian finance ministry officers fast-tracked a proposal in Could 2025 to direct LIC investments price $3.9 billion to Adani Group entities regardless of recognized dangers. The report cited inside paperwork and interviews with serving and former authorities officers, together with three financial institution executives acquainted with Adani Group’s funds.
In keeping with the report, the Union Finance Ministry proposed that LIC unfold its bond investments — estimated at $3.4 billion — between Adani Ports and Particular Financial Zone Ltd (APSEZ) and Adani Inexperienced Power Ltd, citing their larger yields in comparison with 10-year authorities securities. It additionally alleged that LIC was inspired to extend fairness holdings in Adani subsidiaries resembling Ambuja Cements and Adani Inexperienced Power.
The investigation additional claimed the DFS and NITI Aayog coordinated the proposal, which was later permitted by the Finance Ministry, regardless of inside considerations over the volatility of Adani Group securities.
Background
In Could 2025, Adani Ports and SEZ raised Rs 5,000 crore by means of a 15-year non-convertible debenture (NCD) difficulty with a 7.75% coupon price, which was absolutely subscribed by LIC. APSEZ described the transfer as being “backed by robust financials and a AAA/Steady home score.”
The problem reignited political criticism, with Rahul Gandhi, Chief of the Opposition, accusing the federal government of favouring the conglomerate. In a social media publish in June 2025, he wrote, “Cash, coverage, premium are yours; safety, comfort, profit for Adani!”
