<h3 data-start="205" data-end="275">Adani denies bias as Congress questions LIC&rsquo;s Adani exposure</h3>
A fresh political storm erupted after&nbsp;<a title="Washington Post Adani LIC" href="https://www.washingtonpost.com/world/2025/10/24/india-adani-group-modi-lic/" target="_blank" rel="noopener">The Washington Post</a> reported that the Indian government allegedly influenced the Life Insurance Corporation of India (LIC) to invest around $3.9 billion in the Adani Group in May. The revelation prompted the <a title="Congress Allegation Adani" href="https://www.benefitnews24.com/politics/rahul-gandhi-targets-modi--kejriwal-on-inflation--adani/4420" target="_blank" rel="noopener">Congress</a> to accuse the Centre of misusing public funds and to demand a joint parliamentary committee probe into the matter.
According to The Washington Post, which said it had accessed internal documents of the Union Department of Financial Services (DFS), NITI Aayog, and LIC, &ldquo;Indian officials drafted and pushed through a proposal in May to steer roughly $3.9 billion in investments to Adani&rsquo;s businesses from the Life Insurance Corporation of India.&rdquo;
The report added that officials in the Finance Ministry had advised LIC to allocate $3.4 billion to Adani&rsquo;s corporate bonds and an additional $507 million to increase its stakes in various subsidiaries. However, the documents allegedly acknowledged risks, noting that Adani&rsquo;s securities were &ldquo;sensitive to controversies&hellip; causing short-term price fluctuations.&rdquo;
Western media reports also pointed out that LIC&rsquo;s investment value in Adani firms fell sharply following the <a title="Adani SEBI" href="https://www.benefitnews24.com/business/sebi-clears-adani-group-in-hindenburg-case/19505" target="_blank" rel="noopener">Hindenburg </a>Research allegations of stock manipulation and accounting irregularities in 2023, losing about $5.6 billion on paper, before recovering partially in 2024.
The controversy surrounding Adani and public sector investments had previously led to repeated disruptions in Parliament, with the opposition accusing the Modi government of shielding &ldquo;its most favoured business house.&rdquo;
Last year, western media recalled that prosecutors in the United States had indicted Gautam Adani and several associates, alleging they raised billions &ldquo;on the basis of false statements&rdquo; and bribed Indian officials with over $250 million to win solar contracts.
Responding to the allegations, the Adani Group said, &ldquo;We categorically deny involvement in any alleged government plans to direct LIC funds. LIC invests across multiple corporate groups &mdash; and suggesting preferential treatment for Adani is misleading. Moreover, LIC has earned returns from its exposure to our portfolio.&rdquo;
The group maintained that its operations were transparent and compliant with all regulations, while the LIC also denied any impropriety in its investment decisions.
However, the Congress accused the government of pressuring financial institutions to bail out private interests. Congress communications head Jairam Ramesh said, &ldquo;Under whose direction did officials from the Finance Ministry and NITI Aayog decide to rescue a private company facing funding difficulties due to allegations of criminality?&rdquo;
He added that LIC had lost ₹7,850 crore in just four hours of trading on 21 September 2024, following the indictment of Adani and his associates in the United States. &ldquo;The Modi government has refused for nearly a year to serve the US SEC summons to the Prime Minister&rsquo;s most favoured business conglomerate,&rdquo; he alleged.
Despite the mounting criticism, the Centre has maintained silence, while opposition leaders have vowed to keep the issue alive inside and outside Parliament, framing it as a test of governmental transparency and accountability in managing public funds.

LIC and Adani group offices, inset Gautam Adani

Adani denies wrongdoing as Congress seeks probe into LIC’s $3.9 bn investment

Congress questions LIC’s $3.9 bn Adani investment

Adani denies wrongdoing as Congress seeks probe into LIC’s $3.9 bn investment

October 26, 2025 | 08:01 IST