The Life Insurance Corporation of India (LIC) denied a report in The Washington Post alleging that government officials orchestrated a plan in May to channel $3.9 billion (Rs 33,000 crore) in investments from the state-owned insurance giant to companies of the Adani Group.
In a statement, the LIC said claims that its investment decisions were influenced by external factors were "false, baseless and far from the truth". The LIC said no such proposal or document had ever been prepared by the insurer.
"The investment decisions are taken by LIC independently as per Board-approved policies. Department of Financial Services (in the Finance Ministry) or any other body does not have any role in such (investment) decisions," the LIC further said.
The largest insurer in the country said the allegations in the report were made with the intention to prejudice the well-settled decision-making process of LIC and also to tarnish its reputation and image, and the strong financial sector foundations in India.
In its report, The Washington Post claimed that the Finance Ministry in May expedited a proposal directing nearly $3.9 billion in investments from LIC into the Adani Group at a time when the ports-to-energy conglomerate was under debt and facing scrutiny in the US for potentially violating sanctions by importing LPG from Iran.
Moreover, a court in the US indicted Adani in 2024 for his alleged role in a $265 million (Rs 2,236 crore) bribery and fraud scheme.
In May 2025, Adani's ports subsidiary was required to raise roughly $585 million in a bond issue to refinance existing debt.
On May 30, Adani Group announced that the whole bond had been financed by LIC, a deal that drew criticism from Congress and Rahul Gandhi, who called it a misuse of public funds. Adani Ports & SEZ (APSEZ) holds the highest 'AAA' credit rating in India.
Presently, LIC's exposure to the Adani Group is less than 2% of the conglomerate's total debt.
The Washington Post investigation is based on documents from LIC and the Department of Financial Services (DFS), a branch of the Finance Ministry, interviews with officials, as well as three bankers.
The report claimed that the Finance Ministry had proposed that the LIC spread out its $3.4 billion bond investments into Adani Ports & SEZ and Adani Green Energy Limited, citing higher yields than 10-year government securities.
It further alleged that LIC was encouraged to raise its equity stakes in Adani subsidiaries, including Ambuja Cements and Adani Green Energy.
The recommendation from government officials, according to the report, was to invest more in Adani's companies because it "aligns with LIC's mandate" and "supports economic objectives" of the country.
The report claimed that the proposal, jointly coordinated by the DFS and Niti Aayog, was approved by the Finance Ministry despite internal warnings about the volatility of Adani Group securities.
