LIC Invested Over ₹48,284 Crore in Adani Group, Says Centre; Denies Issuing Any Investment Directions
New Delhi, India — The Union government has informed Parliament that the Life Insurance Corporation of India (LIC) has invested ₹48,284.62 crore in Gautam Adani–led Adani Group companies as of September 30, 2025, while firmly denying allegations that it directed the state-owned insurer to pump money into the conglomerate.
The disclosure comes weeks after a Washington Post report claimed that LIC invested nearly $3.9 billion (about ₹33,000 crore) into the Adani Group under government pressure, at a time when the conglomerate was battling global scrutiny, legal challenges, and refinancing hurdles.
The Centre, however, has rejected all such claims.
Centre Clarifies: No Instructions Issued to LIC
Responding to questions raised by Congress MP Mohammad Jawed and TMC MP Mahua Moitra, Union Finance Minister Nirmala Sitharaman said the government does not issue instructions regarding LIC’s investment decisions.
“All LIC investment decisions are taken independently, after strict due diligence, risk assessment and fiduciary compliance,” she said in a written reply.
She added that LIC functions under the regulatory purview of IRDAI, SEBI, and the RBI, and is bound by the Insurance Act.
Break-up of LIC’s Investments in Adani Group
Sitharaman revealed that LIC had in May invested ₹5,000 crore in secured non-convertible debentures (NCDs) of Adani Ports and SEZ. With this, LIC’s total exposure reached:
- ₹38,658.85 crore in equity
- ₹9,625.77 crore in debt instruments
NCDs are fixed-income instruments companies use to raise capital without offering equity conversion options. They provide investors with interest payouts and a return of principal upon maturity.
What the Washington Post Report Claimed
In November, The Washington Post reported that internal documents showed how the Union Finance Ministry “fast-tracked” proposals to channel LIC investments into Adani Group firms, despite being aware of associated risks.
The report said the push came when:
- Adani Group needed to refinance large dollar-denominated debts
- Global banks were reluctant to lend due to a US court indictment accusing Adani of involvement in a $265 million bribery and fraud scheme
It also claimed officials from the Department of Financial Services worked with LIC and NITI Aayog to structure the investment plan.
Adani Group and LIC Respond
The Adani Group dismissed allegations outright, calling them “misleading.”
“LIC invests across multiple groups. Suggesting preferential treatment to Adani is incorrect,” the conglomerate said, adding that LIC had earned strong returns from its exposure.
LIC reiterated the same, stating that:
- It operates independently
- No government entity influences its investment decisions
- All investments undergo board-approved due diligence
A Continuing Political Flashpoint
The controversy underscores a broader political debate over LIC’s exposure to a conglomerate under global scrutiny. While the government denies involvement, opposition parties argue that LIC’s vast policyholder-backed funds must be safeguarded from risky investments.
With Adani Group’s finances under international review and LIC’s investment portfolio now in focus, the issue is likely to remain a major talking point during the ongoing parliamentary session.
