The Life Insurance Corporation of India (LIC) on Saturday refuted allegations of acting on the instructions of the finance ministry and the Niti Aayog to invest in Adani Group companies in a report published by The Washington Post.
India’s premier insurance company said the report was “false, baseless and far from the truth,” as the public sector company maintained that all its investment decisions are made independently, guided by due diligence and board-approved policies.
“Department of Financial Services or any other body does not have any role in such decisions,” the insurer stated, adding that the report appears “to have been made with the intentions to prejudice the well-settled decision-making process of LIC and also to tarnish the reputation and image of LIC and the strong financial sector foundations in India.”
In its statement, LIC clarified that no document or plan, as alleged in the article, was ever prepared to facilitate fund infusion into Adani group companies.
The insurer emphasised that its investment decisions are taken after detailed due diligence and are not influenced by any external body, including the Department of Financial Services (DFS) or any other authority.
LIC described the claims in The Washington Post article, that officials fast-tracked a proposal in May this year to direct approximately $3.9 billion in investments from LIC to an Adani firm — as entirely untrue.
The Washington Post had mentioned in its report that the Prime Minister’s Office and the LIC had not responded to its requests for a comment.
LIC, India’s largest life insurer, reiterated that its investments in Adani group companies have been made independently, in full compliance with its internal policies, provisions in the Acts, and regulatory guidelines, while ensuring the best interests of all stakeholders.
It said that it maintains “the highest standards of due diligence” in all its financial decisions.
The insurer also pointed out that its investment record reflects strong and consistent fund management.
Over the years, the value of its investments in India’s top 500 companies has grown tenfold — from Rs 1.56 lakh crore in 2014 to Rs 15.6 lakh crore.
LIC currently manages assets exceeding Rs 41 lakh crore (over $ 500 billion), making it India’s largest institutional investor with holdings across 351 publicly listed companies spanning multiple sectors.
Its exposure to the Adani group, helmed by industrialist Gautam Adani, is less than 2 per cent of the conglomerate’s total debt.
LIC’s investment in Adani Ports & SEZ (APSEZ) in May 2025 amounted to $ 570 million, and the company holds a ‘AAA’ credit rating in India.
Global investors such as BlackRock, Apollo, Japan’s Mizuho and MUFG, and Germany’s DZ Bank have also invested in Adani debt in recent months, reflecting continued global confidence in the group.
Sources quoted by PTI said Adani’s total debt of Rs 2.6 lakh crore is supported by Rs 90,000 crore in annual operating profit and Rs 60,000 crore in cash, which would allow the company to clear its debt within three years if new investments were paused.
LIC clarified that Adani is not among its largest equity holdings. It owns 4 per cent (Rs 60,000 crore) in Adani stocks compared to 6.94 per cent (Rs 1.33 lakh crore) in Reliance Industries, 15.86 per cent (Rs 82,800 crore) in ITC Ltd, 4.89 per cent (Rs 64,725 crore) in HDFC Bank, and 9.59 per cent (Rs 79,361 crore) in State Bank of India.
The insurer also holds 5.02 per cent of Tata Consultancy Services worth Rs 5.7 lakh crore.
Separately, LIC reported a 3.91 per cent year-on-year increase in consolidated net profit for the June quarter of FY26, rising to Rs 10,957 crore from Rs 10,544 crore in the same period of the previous year.
The insurer said that all its investments are made “in the best interest of all stakeholders,” reaffirming its commitment to integrity, transparency, and adherence to the highest standards of financial governance.