Finance Minister Nirmala Sitharaman issued a detailed clarification on December 2 as questions resurfaced over the Life Insurance Corporation of India’s investments in the Adani Group. The response came against the backdrop of political debate triggered by a Washington Post report in October, which claimed the government had tried to “steer roughly $3.9 billion” of LIC’s funds towards Adani-led companies.
Responding in the Lok Sabha, Sitharaman stated that LIC’s investment decisions are taken independently and guided strictly by its board-approved policies.
Citing one recent example, she noted that LIC invested ₹5,000 crore in secured non-convertible debentures issued by Adani Ports Special Economic Zone in May 2025 after what she described as standard due diligence. She emphasised that the Finance Ministry does not issue “any advisory or direction” to LIC on where to invest its funds.
Government data tabled in the House shows LIC has long held equity in several listed Adani Group companies. The book value of these holdings stands at ₹38,658.85 crore. Separately, LIC has also invested ₹9,625.77 crore in debt instruments of the conglomerate.
The Washington Post report from October had cited unnamed officials to allege that the government drafted and pushed an investment plan in coordination with LIC, the Department of Financial Services and Niti Aayog. According to the report, this alleged plan sought to channel nearly $3.9 billion into Adani companies.
LIC issued a strong rebuttal at the time, calling the claims “false, baseless and far from truth”. The corporation dismissed the idea of any “roadmap” directing fund infusion and said its decisions were taken through an established process governed by fiduciary norms and statutory regulations.
In October, LIC also stated that the suggestions made in the report “appear to have been made with the intentions to prejudice the well-settled decision-making process of LIC” and harm its reputation.
In her reply, Sitharaman added that LIC’s investments are governed by the Insurance Act, 1938 and regulations issued by IRDAI, RBI and SEBI. She said investment decisions undergo due diligence, risk assessment and strict compliance checks.
According to the data shared, LIC invests primarily in the top 500 companies listed on the NSE and BSE, with a significant chunk of its equity exposure in larger firms among these. As of September 30, 2025, the book value of LIC’s investment in Nifty 50 companies stood at ₹4,30,776.97 crore, accounting for 45.85% of its total equity portfolio.
The government’s fresh clarification may not fully settle the political controversy, but it reinforces LIC’s stance that its investment strategy remains internal and rule-bound. With the insurer being custodian of household savings for millions, its exposure to large corporate groups will likely stay under close watch in the months ahead.
