Congress seeks probe into LIC’s alleged Adani investments; insurer denies report

New Delhi, Oct 25: The Congress, on Saturday, demanded that Parliament's Public Accounts Committee (PAC) investigate the Life Insurance Corporation (LIC) following an US media report that the public sector company made huge investments in Adani Group's securities after they took a beating in the markets.

However, the LIC denied the allegations as "false, baseless, and far from the truth".

Congress general secretary in-charge of communications Jairam Ramesh alleged the savings of LIC's 30 crore policyholders were "systematically misused" to benefit the Adani Group.

In a statement, Ramesh said disturbing revelations have just emerged in the media about how the "Modani joint venture systematically misused the Life Insurance Corporation of India (LIC) and the savings of its 30 crore policyholders".

The opposition party's attack came after The Washington Post, citing internal documents, reported that Indian officials drafted and pushed through a proposal to invest about Rs 33,000 crores of LIC funds in various Adani Group companies in May 2025.

Markets regulator SEBI cleared the Adani Group of stock manipulation allegations made by US short-seller Hindenburg Research, saying fund transfer between group companies did not fall foul of any regulation. The SEBI probe was initiated after intervention by the Supreme Court.

In a statement posted on social media, the LIC said the allegations levelled by The Washington Post that its investment decisions were influenced by external factors are "false, baseless, and far from truth".

"No such document or plan as alleged in the article has ever been prepared by LIC, which creates a roadmap for infusing funds by LIC into Adani group of companies. The investment decisions are taken by LIC independently as per Board approved policies after detailed due diligence," the LIC said.

The Department of Financial Services or any other body does not have any role in such decisions, it said.

There was no immediate response from the Adani Group on the Congress' allegations.

Taking a swipe at the government over the issue, Congress president Mallikarjun Kharge said the real beneficiaries of the government's Direct Benefit Transfer initiative "are not the common people of India, but Modi's best friends".

"Does the average salaried middle-class person, who pays every penny of their LIC premium, even know that Modi is using his savings to bail out Adani? Isn't this a breach of trust? Isn't it loot?" Kharge said in a post in Hindi on a micro-blogging website.

The Congress has been persistent in its attack on the government since the Adani Group stocks took a beating on the bourses in the wake of a report by Hindenburg Research, which made a litany of allegations.

The Adani Group has dismissed all charges made by the Congress and others as lies, saying it complies with all laws and disclosure requirements.

PTI