Adani-LIC controversy: LIC clarifies role, Congress demands investigation

Life Insurance Corporation of India (LIC) has said that its investments in Adani group companies were made independently, after careful research and following board-approved rules. The statement comes after a Washington Post report suggested that LIC might have been pressured to invest in the Adani group earlier this year when the company was under financial and international scrutiny. LIC clarified that the Department of Financial Services (DFS) or any other government body had no role in these decisions.

The “financial and international scrutiny” refers to a series of global concerns about the Adani Group in early 2025. Reports by international media and financial analysts questioned the group’s high debt levels of around ₹2.6 lakh crore, its ability to repay loans while continuing large infrastructure and energy projects, and aspects of its corporate governance. Some global investors temporarily paused or carefully reviewed lending and investments in Adani companies, creating intense media coverage and investor attention worldwide.

LIC highlighted its strong track record of investing carefully. Its investment in India’s top 500 companies grew from ₹1.56 lakh crore in 2014 to ₹15.6 lakh crore in 2025. All investment decisions follow rules, regulations, and internal policies, LIC said, aiming to protect the interests of its policyholders and stakeholders. LIC is India’s largest institutional investor, managing over ₹41 lakh crore in assets, spread across more than 350 listed companies, government bonds, and corporate debt.

Apart from Adani, LIC has major holdings in:

• Reliance Industries Limited (RIL) - 6.94% (~₹1.33 lakh crore)

• ITC Limited - 15.86% (~₹82,800 crore)

• HDFC Bank Limited - 4.89% (~₹64,725 crore)

• State Bank of India (SBI) - 9.59% (~₹79,361 crore)

• Tata Consultancy Services Limited (TCS) - 5.02% (~₹5.7 lakh crore)

LIC’s holding in the Adani group is small compared to its overall portfolio, less than 2% of Adani’s total debt. On stocks, LIC owns 4% of Adani shares, while it holds larger stakes in Reliance Industries, ITC, HDFC Bank, SBI, and TCS. Global investors, including BlackRock, Apollo, and banks from Japan and Germany, have also invested in Adani debt, showing confidence in the company. Adani’s total debt of ₹2.6 lakh crore is supported by ₹90,000 crore in annual profit and ₹60,000 crore in cash, giving it the capacity to repay debt in under three years if needed.

The Congress on Saturday demanded that Parliament’s Public Accounts Committee (PAC) investigate LIC following the Washington Post report, alleging that LIC policyholders’ savings were “systematically misused” to benefit the Adani Group. Congress leaders, including Jairam Ramesh and Mallikarjun Kharge, criticized the government, claiming the investments were intended to “signal confidence in the Adani Group” and encourage participation from other investors. They also highlighted earlier LIC investments in Adani during periods of share declines, questioning the government’s role.

LIC responded that the report “seems intended to question LIC’s independent decision-making and affect its reputation,” but assured that all investments are made carefully and responsibly, following detailed due diligence and board-approved policies.