Insurer Firmly Denies External Influence, Asserts Investments Guided Solely by Due Diligence
MUMBAI: The Life Insurance Corporation of India (LIC) today delivered a forceful denial against a report by The Washington Post alleging that Indian government officials orchestrated a plan to channel massive policyholder funds into the Adani Group. LIC labeled the report as “false, baseless, and far from the truth,” asserting that its investment decisions are made with absolute integrity and independence.
The controversy stems from the US daily’s claim that Indian officials allegedly fast-tracked a proposal in May 2025 to direct roughly $3.9 billion, or approximately ₹33,000 crore, of LIC funds into various Adani Group companies. LIC, which manages the savings of over 30 crore policyholders, categorically rejected this assertion.
In a detailed statement, the state-run insurer emphasized that its operations are governed by independence and comprehensive due diligence, and refuted the existence of any formal plan to favor the conglomerate.
“No such document or plan as alleged in the article has ever been prepared by LIC which creates a road map for infusing funds by LIC into Adani group of companies,” the insurer stated, calling the report’s assertions a distortion of fact.
LIC clarified that all its investment decisions are taken independently, strictly guided by its board-approved frameworks and extensive due diligence procedures. It underscored that no external authority, including the Department of Financial Services or any other government body, plays a role in determining its investment choices.
LIC went on to accuse the publication of attempting to undermine public confidence in the financial institution and the wider Indian financial sector.
“These purported statements appear to have been made with the intention to prejudice the well-established decision-making process of LIC and to tarnish the reputation and image of LIC and the strong foundations of India’s financial sector,” the statement concluded.
The denial comes as the opposition Congress party has seized on the report, demanding that Parliament’s Public Accounts Committee (PAC) immediately investigate the alleged misuse of policyholder savings.