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Livemint | English | News | Dec. 3, 2025 | Political Scandal or Corruption

Finance Minister Nirmala Sitharaman stated in Parliament that the Finance Ministry does not provide any advisory or direction to the Life Insurance Corporation of India (LIC) regarding its investment decisions. She emphasized that LIC operates independently, making investment choices based on due diligence, risk assessment, and compliance with regulations from the Insurance Act, IRDAI, RBI, and SEBI. She confirmed that LIC invested ₹5,000 crore in secured non-convertible debentures issued by Adani Ports and Special Economic Zone (APSEZ) in May 2025.

This clarification came in response to an investigation by The Washington Post, which alleged that finance ministry officials helped channel approximately $3.9 billion of LIC funds into Gautam Adani’s companies amid his increasing legal challenges and tightened global credit access. The report suggested the investment was intended to signal confidence in the Adani Group and encourage other investors, coinciding with a 20% increase in the conglomerate’s overall debt over the preceding year. The Adani Group denied receiving preferential treatment, while LIC and the Finance Ministry did not respond to the inquiries from The Washington Post.

As of 30 September 2025, LIC’s total exposure to the Adani Group includes ₹48,284.62 crore in equity and debt across multiple Adani entities such as Adani Enterprises, APSEZ, Adani Total Gas, Adani Green Energy, Adani Energy Solutions, ACC, and Ambuja Cements. LIC’s investment portfolio also includes significant equity holdings in both public sector companies—such as State Bank of India, Coal India Ltd, and ONGC—and private sector firms like Reliance Industries, Infosys, Tata Consultancy Services, and HDFC Bank. Its major debt exposures span companies in both the public and private sectors, with Adani Ports & SEZ featuring among its top private-sector debt investments.