Indian officials allegedly directed $3.9 billion LIC funds to Adani Group after US bribery and fraud charges: Washington Post report

A new report by The Washington Post has created a stir in India. It says that top government officials and the Life Insurance Corporation of India (LIC) made a plan earlier this year to invest around $3.9 billion (₹32,000 crore) in the Adani Group. 

This came when the group was already facing fraud and bribery investigations in the U.S. Both LIC and the government have denied the report, saying no such plan ever existed.

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Did LIC really plan to invest ₹32,000 crore in Adani Group?

According to The Washington Post, documents from May 2025 show that the Finance Ministry, the Department of Financial Services (DFS), and NITI Aayog discussed a proposal to boost investor confidence in the Adani Group. 

The plan reportedly suggested that LIC, India’s largest government-owned insurer, invest around ₹28,000 crore in Adani bonds and another ₹4,000 crore in Adani shares.

The report also mentioned that Adani Ports raised about ₹4,800 crore through bonds on May 30, and LIC was the only investor in that issue. Experts have questioned this move, saying it could put the savings of millions of LIC policyholders at risk. Market analyst Hemindra Hazari told the publication:

“It seemed abnormal for LIC to invest such large sums of money in a private company. If anything happens to LIC, it’s the government that will have to bail it out.”

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LIC responds to the allegations

In a statement posted on X, LIC said the allegations leveled by the Washington Post that its investment decisions were influenced by external factors are:

“LIC denies false reports by The Washington Post, reaffirming all investments are made with integrity and due diligence.”

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Congress demands probe after LIC-Adani report

The opposition Congress party has called for a parliamentary inquiry into the matter, raising concerns over transparency and public money. Congress leader Mallikarjun Kharge posted on X:

“Does the average middle-class person know that their LIC savings are being used to bail out Adani? This is a breach of trust.”

The statement reflects the opposition’s worry that LIC policyholders’ funds could be at risk if investments are influenced by government pressure.

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