The Life Insurance Corporation of India (LIC) on Tuesday issued a fresh statement denying allegations made by The Washington Post that the government directed it to invest billions in the Adani Group.
“LIC categorically clarifies that the documents mentioned have not been issued by LIC, nor have any such documents been received by LIC. Furthermore, LIC has not received any instructions from the Government regarding investments in any entity under this group,” the insurer said.
This marks LIC’s second denial in three days. On Sunday, the state-owned insurer had already rejected the claims, describing them as “far from the truth.”
The Washington Post published a report on Saturday claiming access to “documents from LIC and the Department of Financial Services (DFS)” suggesting that Finance Ministry officials had orchestrated a plan in May to channel nearly $3.9 billion (Rs 33,000 crore) from LIC into Adani Group companies. The report said LIC was “advised” to invest $3.4 billion in Adani’s corporate bonds and use another $507 million to raise stakes in subsidiaries.
In its earlier statement, LIC had said, “The investment decisions are taken by LIC independently as per Board-approved policies. Department of Financial Services (in the Finance Ministry) or any other body does not have any role in such decisions.”
The insurer further said the report was intended to “prejudice the well-settled decision-making process of LIC and tarnish its reputation and image.”
The Washington Post report, citing documents and interviews with officials and bankers, alleged that the Finance Ministry expedited a proposal directing the investments to Adani companies, including Adani Ports & SEZ and Adani Green Energy, on the argument that such corporate bonds offered “higher yields” than government securities.
It also claimed that the proposal, coordinated by the Department of Financial Services (DFS) and NITI Aayog, was approved despite internal warnings about the volatility of Adani Group securities.
The Adani Group, according to the report, told The Washington Post: “We categorically deny involvement in any alleged government plans to direct LIC funds. LIC invests across multiple corporate groups – and suggesting preferential treatment for Adani is misleading. Moreover, LIC has earned returns from its exposure to our portfolio.”
