LIC rejects Washington Post's report on $3.9 billion Adani investment plan

October 25, 2025 by News Desk

The Life Insurance Corporation of India (LIC) has rejected allegations made in a Washington Post investigation that claimed Indian officials had approved a plan to channel nearly $3.9 billion (₹32,000 crore) of LIC funds into the Adani Group.

In a statement issued on Friday, the state-run insurer called the report “false and baseless,” asserting that no such proposal was ever drafted or received. LIC said all its investment decisions are taken independently, based on internal policies, regulatory norms, and board approvals — without any direction from the government.

“The Department of Financial Services (DFS) or any other government authority has no role in LIC’s investment decisions,” the insurer said, adding that the report appeared to be “an attempt to mislead the public and malign India’s financial institutions.”

LIC clarified that its existing investments in Adani Group companies were made well before the timeline mentioned in the Washington Post story and followed due diligence and risk assessment processes.

Both LIC and the Adani Group have dismissed the claims, though the report has reignited discussions about the government’s influence over state-run financial bodies and corporate governance practices in India.

What The Washington Post Investigation Reported

In an investigative report, The Washington Post alleged that Indian officials from the Finance Ministry, Department of Financial Services, NITI Aayog, and LIC had in May 2025 drafted and approved a plan for LIC to invest about $3.9 billion into Adani Group companies.

Citing internal documents and interviews with government officials and bankers, the report said the proposal aimed to “signal confidence” in Gautam Adani’s business empire, which had come under global scrutiny after U.S. authorities charged Adani with bribery and fraud in 2024.

According to the Post, the proposal involved:

$3.4 billion to be invested in Adani Ports and Adani Green Energy through bonds.

$507 million to increase LIC’s equity holdings in Ambuja Cements and Adani Green Energy.

The plan was allegedly described as part of India’s broader “strategic objectives” to support key infrastructure firms. The report also said that Adani Ports raised $585 million through bonds in May 2025, fully financed by LIC, a move critics reportedly described as “crony capitalism.” Financial analyst Hemindra Hazari was quoted as saying the plan reflected the state’s use of public funds to favor private conglomerates.

The Washington Post has stood by its findings, while the Indian government and LIC have both termed the claims as unfounded and politically motivated.