LIC rejects Washington Submit report on alleged $3.9 billion Adani funding plan; says investments made with integrity

State-run insurer Life Insurance coverage Company of India (LIC) on Saturday strongly denied allegations made in a report by The Washington Submit that claimed Indian officers had drafted a proposal to channel roughly $3.9 billion (Rs 32,000 crore) from LIC into firms owned by the Adani Group.

Terming the allegations “false, baseless, and much from reality,” LIC mentioned no such proposal or doc had ever been ready by the insurer or the federal government. The state-owned firm asserted that its funding selections are totally unbiased and made strictly as per board-approved insurance policies after detailed due diligence.

“The allegations levelled by The Washington Submit that the funding selections of LIC are influenced by exterior elements are false,” LIC mentioned in an official assertion. “No such doc or plan as alleged within the article has ever been ready by LIC that creates a roadmap for infusing funds into Adani group firms.”

The insurer additional claimed the article appeared to have been written with “intentions to prejudice” LIC’s well-established decision-making course of and “tarnish its repute” together with that of India’s monetary establishments. It reiterated that the Division of Monetary Companies (DFS) or every other authorities company doesn’t play a task in its funding selections.

LIC emphasised that it maintains the very best requirements of due diligence and that each one investments are made in accordance with current legal guidelines, inner insurance policies, and regulatory tips — prioritising the pursuits of policyholders and stakeholders.

What the report mentioned

The Washington Submit investigation, authored by Pranshu Verma and Ravi Nair, alleged that Indian finance ministry officers fast-tracked a proposal in Might 2025 to direct LIC investments price $3.9 billion to Adani Group entities regardless of recognized dangers. The report cited inner paperwork and interviews with serving and former authorities officers, together with three financial institution executives aware of Adani Group’s funds.

In accordance with the report, the Union Finance Ministry proposed that LIC unfold its bond investments — estimated at $3.4 billion — between Adani Ports and Particular Financial Zone Ltd (APSEZ) and Adani Inexperienced Vitality Ltd, citing their increased yields in comparison with 10-year authorities securities. It additionally alleged that LIC was inspired to extend fairness holdings in Adani subsidiaries similar to Ambuja Cements and Adani Inexperienced Vitality.

The investigation additional claimed the DFS and NITI Aayog coordinated the proposal, which was later authorized by the Finance Ministry, regardless of inner issues over the volatility of Adani Group securities.

Background

In Might 2025, Adani Ports and SEZ raised Rs 5,000 crore by a 15-year non-convertible debenture (NCD) problem with a 7.75% coupon price, which was absolutely subscribed by LIC. APSEZ described the transfer as being “backed by robust financials and a AAA/Steady home score.”

The difficulty reignited political criticism, with Rahul Gandhi, Chief of the Opposition, accusing the federal government of favouring the conglomerate. In a social media put up in June 2025, he wrote, “Cash, coverage, premium are yours; safety, comfort, profit for Adani!”