New Delhi, Oct 25: State-run Life Insurance Corporation of India (LIC) has firmly rejected a report by The Washington Post that claimed Indian officials had drafted a plan to channel nearly $3.9 billion (around ₹32,000 crore) of LIC funds into companies owned by the Adani Group as reported by Business Today.
Calling the claims “false, baseless and far from truth,” LIC said it had never prepared or received any such proposal from the government. The insurer clarified that all its investment decisions are taken independently, based on board-approved policies and detailed due diligence. It added that neither the Department of Financial Services (DFS) nor any other government body has any role in its investment choices. LIC said the report appeared to be an attempt to “prejudice” its decision-making process and “tarnish” the reputation of India’s financial institutions. It reiterated that all investments are made according to laws, internal rules, and regulatory guidelines always keeping policyholders’ interests first.
What The Washington Post Report Claimed
In its investigation by Pranshu Verma and Ravi Nair, The Washington Post alleged that officials from the Finance Ministry, DFS, NITI Aayog, and LIC had drafted and approved a proposal in May 2025 to invest about $3.9 billion from LIC into Adani Group companies.
The report said the plan was meant to support Gautam Adani’s businesses, which were struggling after U.S. authorities charged him with bribery and fraud in 2024. Citing government documents and interviews with officials and bankers, the Post claimed that Indian authorities wanted to “signal confidence” in Adani’s empire and attract other investors amid international scrutiny.
According to the report, the proposal involved investing $3.4 billion in Adani Ports and Adani Green Energy through bonds and another $507 million to increase LIC’s equity stakes in Ambuja Cements and Adani Green Energy. It said the plan was framed as part of India’s “strategic objectives” to back key infrastructure companies.
The paper also reported that in May 2025, Adani Ports raised $585 million through bonds, fully financed by LIC — a move critics called a misuse of public funds. It quoted financial analyst Hemindra Hazari, who described the alleged plan as an example of “crony capitalism.”
LIC’s Response
LIC dismissed the allegations as “malicious and misleading,” saying its existing investments in Adani Group were made long before the time period mentioned in the report. The insurer said all its investment decisions go through a transparent, policy-based process with strict oversight and risk management. “No such document or roadmap for infusing funds into Adani Group companies has ever been prepared by LIC,” the insurer said. “Any suggestion that our investments are politically directed is completely untrue.”
Both LIC and the Adani Group have denied The Washington Post’s claims. However, the report has reignited debate over government influence and corporate governance in India’s biggest financial institutions. While the U.S.-based newspaper stands by its story, LIC’s firm rebuttal indicates the controversy is unlikely to fade soon and some opposition political parties are likely to jump into the debate.
