Congress accuses LIC of misusing policyholders' savings to benefit the Adani Group, citing Washington Post investigation suggesting a Rs 33,000 crore investment plan.
LIC reportedly incurred a Rs 7,850 crore loss following the indictment of Adani and associates in 2024.
LIC refutes the claims, asserting that all investment decisions are made independently and in compliance with regulations.
Congress Demands Parliamentary Probe By Public Accounts Committee On Misuse Of LIC Funds To Aid Adani Group
An explosive Washington Post investigation has revealed that Indian government officials drafted and approved a US$3.9bn (billion) plan to direct taxpayer-backed investments from the Life Insurance Corporation of India into companies owned by billionaire Gautam Adani, a close ally of PM Narendra Modi.
Summary
The Congress party has accused the Life Insurance Corporation of India (LIC) of misusing the savings of its 300 million policyholders to benefit the Adani Group. Party leaders have demanded that the Public Accounts Committee (PAC) of Parliament investigate these allegations.
Congress General Secretary Jairam Ramesh stated that internal documents suggest Indian officials orchestrated a plan to invest approximately Rs 33,000 crore of LIC funds into various Adani Group companies in May 2025. The purported aim was to "signal confidence" in the conglomerate and encourage participation from other investors. Ramesh questioned the motivations behind these decisions, suggesting that they may have been influenced by external pressures.
The controversy intensified when reports indicated that LIC suffered a significant loss of Rs 7,850 crore in just four hours of trading on September 21, 2024, following the indictment of Gautam Adani and seven of his associates in the United States. The charges against Adani include allegations of orchestrating a Rs 2,000 crore bribery scheme to secure high-priced solar power contracts in India.
In response, LIC has firmly denied the allegations, describing them as "false, baseless, and far from the truth." The insurer emphasized that all its investment decisions are made independently, adhering to established norms and regulations, and are in the best interest of its stakeholders.
The Congress party's demand for a PAC investigation underscores the growing scrutiny of LIC's investment practices and their potential implications for policyholder interests.
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