Congress alleges misuse of public funds; LIC dismisses charges as “malicious and baseless” while Adani controversy resurfaces amid rising corporate scrutiny.
New Delhi ( Economy India): India’s largest public sector insurer, the Life Insurance Corporation of India (LIC), is facing intense scrutiny following a report by The Washington Post claiming the company invested nearly $3.9 billion (approximately ₹33,000 crore) in theAdani Group during a period marked by corporate and regulatory controversy.
The report, which has reignited debate over the nexus between politics, public institutions, and big business, alleges that the investment was made at a time when Adani Group was battling allegations of insider trading, inflated valuations, and questionable accounting practices.
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Congress Demands Probe, Alleges Public Money Misused
The Congress Party has launched a strong political attack on the government, accusing LIC of using policyholders’ hard-earned savings to “bail out” the Adani conglomerate.
Citing the U.S. media report, Congress leaders alleged that LIC’s investment in Adani entities in May 2025 was politically motivated and intended to stabilize the group’s image after a series of damaging revelations in earlier years.
Senior party spokesperson Jairam Ramesh demanded a probe by the Public Accounts Committee (PAC), stating:
“This is not just about financial misjudgment—it is about the systematic misuse of people’s savings to benefit a corporate empire closely aligned with the ruling establishment. The Public Accounts Committee must investigate every aspect of this alleged deal.”
LIC Refutes Allegations, Says All Investments Follow Due Diligence
In a statement issued late Friday, LIC strongly denied The Washington Post report, calling it “factually incorrect and misleading.” The insurer clarified that all its investment decisions are taken after thorough analysis, in compliance with SEBI and IRDAI regulations.
“LIC’s investment portfolio is managed under a transparent and robust framework. The report’s claims are baseless and aim to malign the reputation of LIC and India’s financial system,” the company stated.
The insurer also rejected the existence of any “internal document” or “special plan” regarding investment in Adani Group firms, as claimed by the report.
TMC’s Mahua Moitra Shares Report, Escalates Political Row
Trinamool Congress MP Mahua Moitra amplified the controversy by sharing The Washington Post report on social media, questioning why the government allowed public sector entities like LIC to invest heavily in Adani firms during a period when the conglomerate was allegedly under investigation for corporate misconduct.
“When Adani was drowning in debt and facing global scrutiny, why did LIC and public sector banks choose to rescue them with taxpayer-backed money? This needs answers,” Moitra wrote.
LIC Faces Political Storm Over ₹33,000 Crore Investment in Adani Group After US Media Report
A Timeline of LIC’s Relationship with the Adani Group
LIC has historically been one of the largest institutional investors in Indian equities, with holdings in multiple Adani Group companies. As of 2024, LIC held stakes worth over ₹30,000 crore across Adani Enterprises, Adani Ports, Adani Green Energy, and Adani Transmission.
The insurer’s exposure to the group came under criticism in January 2023, after U.S.-based short-seller Hindenburg Research accused Adani Group of stock manipulation and accounting fraud. Despite a temporary dip in Adani stock prices, LIC retained its investments, insisting that its long-term strategy was based on fundamentals and risk assessment.
The Broader Adani Controversies: A Recap
1. Hindenburg Report Shockwave (2023)
In January 2023, Hindenburg Research published a report alleging the Adani Group engaged in “the largest con in corporate history.” The report accused the conglomerate of using offshore shell companies to inflate stock prices and manipulate financial statements. The report wiped out nearly $100 billion in market capitalization within weeks, triggering regulatory probes and international headlines.
The Supreme Court later ordered SEBI to investigate the allegations. In early 2024, SEBI reported “no conclusive evidence of market manipulation,” but questions over transparency and governance persisted.
2. Coal Import Overpricing Allegations (2024)
In 2024, the Financial Times and the Organized Crime and Corruption Reporting Project (OCCRP) claimed that Adani imported low-grade coal from Indonesia at $28 per tonne and sold it domestically as high-grade coal at $91.9 per tonne. The report alleged a ₹582 crore overbilling between 2019 and 2021—charges that Adani Group has categorically denied.
Jairam Ramesh: “A Pattern of State Patronage”
Jairam Ramesh alleged that the alleged LIC investment is part of a larger pattern of state-backed favoritism that includes:
Misuse of Enforcement Agencies: ED, CBI, and IT departments allegedly pressured private firms to sell assets to Adani at undervalued prices.
Privatization of National Assets: Airports, ports, and power projects allegedly sold to Adani Group under favorable terms.
Diplomatic Support Abroad: Indian diplomacy used to secure Adani contracts in Sri Lanka and Bangladesh.
Inflated Coal Imports and Power Prices: Artificial price inflation allegedly facilitated through offshore intermediaries.
Adani’s Response and Financial Standing
The Adani Group has repeatedly denied all allegations, maintaining that its operations adhere to Indian and international regulations. Group Chairman Gautam Adani stated earlier this year:
“Truth has prevailed in every investigation so far. Adani Group continues to contribute to India’s infrastructure and energy growth with transparency and integrity. Our focus remains on nation-building.”
According to Forbes 2025, Gautam Adani remains Asia’s second-richest individual, with an estimated net worth of ₹6.22 lakh crore. The Adani Group’s diversified portfolio now spans energy, logistics, mining, ports, cement, data centers, and renewables.
Expert View: Balancing Public Investment and Corporate Exposure
Market analysts note that public sector institutions like LIC play a pivotal role in India’s capital markets. However, the exposure of these institutions to politically sensitive conglomerates can raise governance concerns.
Ramesh Chand, a Mumbai-based financial analyst, noted:
“LIC’s investment strategy must be insulated from political influence. Even if the investments were sound, the optics matter when a government-owned entity is seen supporting a politically linked corporate group.”
The Road Ahead
The controversy over LIC’s alleged ₹33,000 crore investment in Adani Group underscores the growing demand for transparency in public sector investment decisions. With political parties pressing for a formal probe and LIC standing firm on its defense, the episode adds yet another layer to the ongoing debate over corporate governance, state power, and accountability in India’s economic landscape.
Whether the Public Accounts Committee takes up the investigation or not, this case is set to test the credibility of India’s largest insurer and its alignment with public trust.
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