Finance Minister Nirmala Sitharaman issued a clarification on Monday amid renewed scrutiny of financial decisions taken by the Life Insurance Corporation of India. The state-owned insurer has made extensive investments in various Adani Group companies over the years — with a Washington Post report claiming in October that the government had sought to ‘steer roughly $3.9 billion in investments to Adani-led businesses via LIC’. Opposition leaders had subsequently sought a probe and alleged “disturbing misuse” of public savings.
“Life Insurance Corporation of India has invested Rs. 5000 crore in secured Non-Convertible Debentures issued by Adani Ports Special Economic Zone in May 2025, after doing due diligence following established Standard Operating Procedures as per their Board approved policies. Ministry of Finance does not issue any advisory/direction to LIC in connection with matters related to investment of LIC fund,” Finance Minister Nirmala Sitharaman told the Lok Sabha on Monday.
The state-owned insurance company has bought shares across half a dozen listed companies of Adani Group over the years — with book value standing at Rs 38,658.85 crore. Detailed shared by the Finance Ministry also revealed that LIC invested another Rs 9,625.77 crore in debt instruments of the conglomerate.
‘Govt directed LIC to invest $3.9 bn in Adani’: Report
A report by The Washington Post had claimed in October that the government had “drafted and pushed through a proposal in May to steer roughly $3.9 billion in investments to Adani’s businesses from the Life Insurance Corporation”. The company had subsequently issued a rebuttal — insisting that the allegations of external influence were “false, baseless and far from truth”. LIC also denied the existence of any “document “roadmap” for infusion of funds and reiterated that its decisions were taken independently as per board-approved policies following due diligence. The WaPo report had cited unnamed officials to allege that officials at the Department of Financial Services crafted an “investment plan” in co-ordination with LIC and Niti Aayog. It added that these documents were subsequently shown and approved by the Finance Ministry.
“The Department of Financial Services or any other body does not have any role in such decisions…. These purported statements in the article appear 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,” LIC had countered in October.
Varied LIC investments
Sitharaman also told the Lok Sabha that LIC has invested in the top 500 companies listed on NSE and BSE, and a major portion of its investment currently is in the larger companies out of these.
“The investment decisions of LIC are taken by LIC alone following strict due diligence, risk assessment and fiduciary compliance and are governed by the provisions of Insurance Act, 1938 as well as regulations issued by Insurance Regulatory and Development Authority of India (IRDAI), Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) (wherever applicable) from time to time. Broadly, LIC’s investments reflect that it invests in the top 500 companies listed on NSE and BSE and a major portion of LIC’s investment currently is in the larger companies out of these. Book value of LIC’s investment in Nifty 50 companies, as on 30th Sept 2025, is Rs. 4,30,776.97 Cr which is 45.85% of its total equity investment,” the written reply added.