The Congress has jumped on a scandal triggered by a detailed report in The Washington Post that internal Indian government documents show officials drafted a plan in May 2025 for LIC to channel roughly US$3.4 billion into Adani’s bonds and another ~US$507 million into its equity stakes.
In response, LIC has called the allegations “false, baseless and far from the truth”, emphasising that its investment decisions are made independently, according to board-approved policies and after due diligence.
"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 the Adani group of companies. The investment decisions are taken by LIC independently as per Board-approved policies after detailed due diligence," the LIC said in a statement.
Opposition raises alarm over LIC’s investment decisions
Congress general secretary Jairam Ramesh, meanwhile, alleged that the savings of LIC’s 30 crore policyholders were “systematically misused” to benefit a politically connected business group. The party also quoted INC president Mallikarjun Kharge asking whether the middle-class salaried citizen even knows their LIC premium could be used to prop up the Adani Group.
Demand for parliamentary probe, government under pressure
The Congress is insisting that the PAC take immediate action to examine how LIC’s funds might have been directed into Adani securities, and under whose influence such decisions were taken. The party argues that this is not just a business transaction but a possible breach of trust with public-sector investment. Ramesh asked whether government bodies such as the Department of Financial Services and the NITI Aayog exerted pressure on LIC to make specific investments
According to a PTI report, in his statement, Ramesh said, "Internal documents reveal 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." The reported goals were to "signal confidence in the Adani Group" and to "encourage participation from other investors".
The Adani Group has issued a statement saying the allegations of undue favour are “unfounded” and that LIC invests across multiple groups, not preferentially into Adani. The group said its growth predates the current government’s term.
