A Washington Post investigation has revealed how the Modi government quietly devised a $3.9 billion plan to rescue Gautam Adani’s debt-ridden group, using money from the state-owned Life Insurance Corporation of India (LIC).
Internal documents obtained by the Washington Post reveal that in May 2025, the Union Finance Ministry, its Department of Financial Services (DFS), LIC, and NITI Aayog agreed on an investment strategy to invest billions of dollars in Adani Group bonds and equities. This plan included issuing $585 million in bonds for Adani Ports, which was financed by LIC alone.
The report states, “This plan was completed the same month that Adani Ports’ company was to issue bonds worth approximately $585 million (approximately Rs 4,880 crore) to repay its old debt. On May 30, the Adani Group announced that the entire bond had been purchased by a single investor (LIC).” Critics called the deal a misuse of public funds.
Meanwhile, in a statement released on social media, state-owned life insurance company LIC stated that it makes all its investment decisions independently and completely denied the existence of the alleged documents reported by the Washington Post.
LIC’s Statement
LIC categorically stated that no such document or plan exists that contains a roadmap for investing in Adani Group companies. The company termed these allegations as false, baseless, and far from the truth. LIC stated, “These allegations made by the Washington Post are false, baseless, and far from the truth. LIC has never prepared any document or plan for investing funds in the Adani Group, as described in the report.” LIC further stated, “All our investment decisions are made independently, after thorough due diligence, in accordance with board-approved policies. The Department of Financial Services or any other entity plays no role in these decisions.”
What is the full story?
The controversy erupted when the Washington Post published an exclusive report on Friday, claiming that internal government documents revealed a planned effort to get LIC to invest public money in Adani Group shares. The report alleged that LIC was pressured to make significant investments to support Adani companies. However, LIC has now categorically denied these allegations, stating that there was no external pressure or secret plan to invest in Adani or any other company.
How much is LIC’s investment in Adani?
According to information, LIC’s investment in Adani Group shares represents less than 1% of its total assets. Furthermore, LIC invested when Adani’s shares fell following the Hindenburg report. Later, when the shares rose after all allegations were dismissed, LIC reaped significant profits. LIC has clearly stated that its investment decisions are independent and transparent, and that the Washington Post report is completely false and misleading.
If we put the whole incident together and squeeze it, what emerges from it is that this allegation is just the latest in a series of foreign conspiracies that have been going on to condemn the Modi government and bring it down. This can be said to be the second attempt after the failed attempt to put the Modi government at risk by reducing the share price of Adani through Hindenburg. The Adani case has also been trumped up.
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