The Life Insurance Corporation of India (LIC) has strongly refuted a report by The Washington Post alleging that the Indian government orchestrated a plan to direct $3.9 billion of LIC funds into Adani Group companies. LIC described the claims as “false, baseless, and far from the truth,” emphasizing that all investment decisions are made independently, based on board-approved policies and thorough due diligence processes.
The Washington Post report, published on October 24, 2025, cited internal documents and interviews with officials, suggesting that the Finance Ministry, in coordination with LIC and NITI Aayog, developed a roadmap in May 2025 to support the Adani Group amid mounting financial challenges. The plan allegedly involved directing LIC to purchase Adani bonds and increase equity stakes in several subsidiaries. The report also highlighted that Adani Group companies were under scrutiny in the U.S. for potential violations of sanctions and had faced significant market value declines following the 2023 Hindenburg report.
LIC’s rebuttal categorically denied the existence of any such plan or document. The insurer reiterated that its investment decisions are guided solely by internal policies and regulatory frameworks, without external influence. Former LIC Chairman Siddhartha Mohanty also criticized the report as a “misleading narrative,” affirming that the government has never interfered in LIC’s investment decisions.
The controversy has drawn attention from opposition parties, with the Congress party demanding a parliamentary probe into LIC’s investments in the Adani Group. The matter continues to unfold, with stakeholders monitoring for further developments.
In the broader context, the incident underscores the challenges of misinformation and the importance of verifying sources before disseminating information. The spread of unverified claims can have significant implications, especially when they involve public institutions and large financial transactions.
As the situation develops, it remains crucial for all parties involved to uphold transparency and accountability to maintain public trust and ensure the integrity of financial operations.
