Life Insurance Corporation of India (LIC) on Saturday denied reports by The Washington Post that alleged Indian officials drafted and pushed through a proposal in May to steer roughly $3.9 billion in investments from the state-owned insurer to Adani Group companies. LIC called the claims “false.”
LIC, in a statement, said that these purported statements in the article appear to have been made with the intentions to “prejudice” the well-settled decision-making process of LIC and also to “tarnish the reputation and image” of LIC and the strong financial sector foundations in India.
“The allegations leveled by the Washington Post that the investment decisions of LIC are influenced by external factors are false, baseless, and far from truth. No such document or plan as alleged in the article has ever been prepared by LIC, which creates a roadmap for infusing funds by LIC into Adani group of companies.”
The investment decisions are taken by LIC independently as per Board approved policies after detailed due diligence, said the group. “Department of Financial Services or any other body does not have any role in such decisions.”
LIC has ensured “highest standards of due diligence” and all its investment decisions have been undertaken in compliance with extant policies, provisions in the Acts and regulatory guidelines, in the best interest of all its stakeholders, it said.
The report also highlighted LIC’s May 2025 investment of $570 million in Adani Ports & SEZ (APSEZ), which holds the highest ‘AAA’ credit rating in India. At that time, the Adani Group was facing a debt pile and scrutiny in the US.
LIC also holds substantial government bonds and corporate debt. Its portfolio is highly diversified, spreading risk.
LIC’s exposure to the Adani group is less than 2 per cent of the conglomerate’s total debt, helmed by India’s second-richest man, Gautam Adani.
Global investors like US’ largest funds BlackRock, Apollo, Japan’s largest banks Mizuho, MUFG, and Germany’s second largest bank DZ Bank have also invested in Adani debt in recent months, reflecting global confidence in the group.
Adani Group on allegations
The Adani Group, in response to the Washington Post report, said, “We categorically deny involvement in any alleged government plans to direct LIC funds”.
“LIC invests across multiple corporate groups — and suggesting preferential treatment for Adani is misleading. Moreover, LIC has earned returns from its exposure to our portfolio.”
The company said that “assertions of undue political favour are unfounded” and “our growth predates Mr Modi’s national leadership.”
LND/SAE
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