Congress seeks PAC probe into LIC over Adani investments; LIC denies claims

New Delhi: The Congress party on Saturday demanded that Parliament's Public Accounts Committee (PAC) investigate the Life Insurance Corporation of India (LIC) following a US media report alleging the public sector company made significant investments in Adani Group's securities after they suffered market losses.

However, the LIC denied the allegations, calling them "false, baseless, and far from the truth."

The opposition party's attack was spurred by a report in The Washington Post, which, citing internal documents, claimed Indian officials drafted and pushed through a proposal in May 2025 to invest approximately Rs 33,000 crores of LIC funds in various Adani Group companies.

Congress General Secretary Jairam Ramesh alleged that the savings of LIC's 30 crore policyholders were "systematically misused" to benefit the Adani Group, referring to the situation as the "Modani joint venture."

LIC Rejects Washington Post Report

The LIC, in a statement posted on social media, rejected the claims that its investment decisions were influenced by external factors.

"No such document or plan as alleged in the article has ever been prepared by LIC, which creates a roadmap for infusing funds by LIC into Adani group of companies," the statement read. It asserted that investment decisions are taken independently by the insurer as per Board-approved policies and after detailed due diligence.

The LIC added that the Department of Financial Services (DFS) or any other body does not have any role in such investment decisions.

Congress Leaders Attack Government

Congress president Mallikarjun Kharge lashed out at the government, suggesting the "real beneficiaries of the government's Direct Benefit Transfer initiative are not the common people of India, but Modi's best friends."

"Does the average salaried middle-class person, who pays every penny of their LIC premium, even know that Modi is using his savings to bail out Adani? Isn't this a breach of trust? Isn't it loot?" Kharge posted on a micro-blogging website.

The Congress has been persistent in its attack on the government since Adani Group stocks declined following a report by US short-seller Hindenburg Research, which made a litany of allegations. The Adani Group has consistently dismissed all charges as lies and maintained it complies with all laws.

Markets regulator SEBI had previously cleared the Adani Group of stock manipulation allegations made by Hindenburg Research, stating fund transfers between group companies did not violate any regulations. The SEBI probe was initiated after intervention by the Supreme Court.

There was no immediate response from the Adani Group on the Congress' latest allegations.