The Life Insurance Corporation of India (LIC) on Saturday dismissed a Washington Post report alleging that the Indian government had influenced the state-run insurer to channel nearly $3.9 billion (about ₹33,000 crore) into companies owned by the Adani Group earlier this year.

In a strong rebuttal, LIC termed the allegations “false, baseless, and far from reality,” asserting that its investment operations are entirely independent and governed by established, board-approved policies.

“No such proposal or document, as claimed in the report, has ever been created or considered by LIC,” the insurer said in its statement. “Investment decisions are made solely by LIC. Neither the Department of Financial Services (DFS) nor any other government entity has any involvement in such decisions,” it clarified.

LIC also said the publication’s claims appeared to be “deliberately intended to discredit” the insurer’s transparent decision-making process and harm its public image.

What the Washington Post Report Claimed

According to the Washington Post, officials from the Finance Ministry allegedly fast-tracked a proposal in May to direct billions in LIC investments toward the Adani Group at a time when the conglomerate was struggling with mounting debt and facing scrutiny in the United States over possible sanctions violations involving Iranian LPG imports.

The report also cited a 2024 U.S. court indictment against Adani for an alleged $265 million (₹2,236 crore) bribery and fraud case.

It claimed that by May 2025, Adani Ports needed to raise around $585 million through a bond issue to refinance existing liabilities. On May 30, Adani Group announced that LIC had financed the entire bond — a move that drew political criticism, including from Congress leader Rahul Gandhi, who accused the government of misusing public funds.

Currently, LIC’s exposure to the Adani Group remains below 2% of the conglomerate’s overall debt portfolio.

Citing internal documents, the Washington Post report alleged that the Finance Ministry, in coordination with the Department of Financial Services and NITI Aayog, had encouraged LIC to invest in Adani Ports, Adani Green Energy, and other Adani-owned subsidiaries — suggesting the move would align with national economic objectives and offer higher returns than 10-year government securities.

However, according to the report, internal warnings were raised within the ministry about the risks associated with the volatility of Adani Group stocks. Despite these concerns, the proposal was reportedly cleared.

LIC’s statement categorically denied all such assertions, maintaining that every investment it makes adheres to rigorous internal protocols and independent assessments of financial soundness.