India’s largest government-owned company, LIC, and the government have been accused by the Washington Post of allegedly investing ₹33,000 crore in Adani Group companies to benefit Adani. This has sparked a major controversy in the country.
SNPNEWS.IN News (Gurmail Kamboj): On 24 October 2025 (Saturday), the American newspaper Washington Post published a report leveling serious allegations against the Life Insurance Corporation of India (LIC). The report primarily focuses on LIC’s investments in the Adani Group, which the newspaper has linked to government pressure.
The report claims that in May 2025, the Indian government swiftly approved a proposal under which LIC was directed to invest approximately $3.9 billion (around ₹33,000 crore) in the Adani Group. This includes $3.4 billion (around ₹28,000 crore) in Adani’s corporate bonds and $507 million (around ₹4,200 crore) to increase stakes in subsidiary companies.
According to the newspaper, due to fraud cases against the Adani Group in the US, banks were not providing loans, prompting the government to instruct LIC to invest in the Adani Group. The report states that the Ministry of Finance, Department of Financial Services (DFS), and NITI Aayog prepared a plan, which was portrayed as support to refinance Adani’s debt.The newspaper claims the report is based on LIC and DFS documents, interviews with officials, and statements from three bankers. It alleges that the Adani Group is receiving special support.
LIC is India’s largest institutional investor with total assets under management (AUM) exceeding ₹53.58 lakh crore (as of June 2025). It invests in 351 publicly listed stocks across various sectors (banking, IT, industry, energy, etc.). Investments include equity (stocks), corporate bonds, and government bonds.
As of October 2025, LIC’s major investments in Indian companies are as follows:
● Reliance: ₹1,33,000 crore
● Tata Group: ₹1,30,000 crore
● ITC: ₹82,800 crore
● HDFC: ₹64,725 crore
● SBI: ₹69,361 crore
● Adani Group: ₹60,000 crore
● Aditya Birla Group: ₹42,600 crore
Adani has also received over $10 billion in investments from US insurance companies (such as Athene), which is larger than LIC’s exposure.
LIC has termed the report “false, baseless, and impossible”. LIC stated that no government-prepared roadmap or document exists for investments in the Adani Group. All investments are made after board approval and thorough due diligence. The Department of Financial Services or any other entity has no role in investment decisions. The report was published with the intent to damage LIC’s well-established processes and tarnish the image of India’s financial sector.
The Adani Group, in its response to the Washington Post’s claims, stated that it is not part of any “government plan”. LIC’s investments are part of a regular portfolio and are not linked to any preferential treatment.
A government official told The Indian Express that “DFS did not write any letter to LIC asking it to invest in the Adani Group. It is not true that DFS issued any such letter.” LIC also confirmed that no such document or directive was received from DFS.
The Washington Post report published on 24 October 2025 linked LIC’s $3.9 billion (around ₹33,000 crore) investment in the Adani Group to a government plan. In response, Congress leader and Head of Communications Jairam Ramesh issued a strong statement on 25 October 2025. He called it a scheme by the “Modani” (Modi-Adani) brotherhood to steal the hard-earned money of LIC’s 30 crore policyholders. He demanded an investigation by the Parliamentary Public Accounts Committee (PAC) or Joint Parliamentary Committee (JPC).
He said: “The cost of funneling public money into crony firms became clear when, on 21 September 2024, after Adani was indicted in a US court in a $265 million bribery and fraud case, LIC suffered a loss of ₹7,850 crore in just 4 hours. Adani was accused of paying ₹2,000 crore in bribes to secure high-priced solar power contracts in India.”
Congress President Mallikarjun Kharge, Rahul Gandhi, and several other opposition leaders have supported Jairam Ramesh and are aggressively cornering the government on this issue.