LIC trashes Washington Post report again: ‘No such documents, no instructions from govt’

The Life Insurance Corporation of India (LIC) on Tuesday issued a new statement denying allegations by The Washington Post that it was directed by the government to invest billions in the Adani Group.

“LIC categorically clarifies that the said documents were not issued by LIC, nor has LIC received any such documents. Moreover, LIC has not received any instructions from the government with regard to investments in any entity under this group,” the insurer said.

This marks the second rejection from LIC in three days. The state-owned insurance company on Sunday rejected these allegations, describing them as “far from the truth.”

The Washington Post published a report on Saturday claiming access to “documents from LIC and the Department of Financial Services (DFS)” indicating that Finance Ministry officials had orchestrated a plan in May to funnel nearly $3.9 billion (Rs 33,000 crore) from LIC to Adani group companies. The report said the life insurer was “advised” to invest $3.4 billion in Adani bonds and use another $507 million to increase stakes in subsidiaries.

The Life Insurance Company had said in its previous statement, “investment decisions are made by the Life Insurance Company independently in accordance with the policies approved by the Board of Directors. The Financial Services Department (in the Ministry of Finance) or any other party has no role in such decisions.”

The insurer further said that the report aims to “prejudice the well-established decision-making process of LIC and tarnish its reputation and image.”

The Washington Post report, citing documents and interviews with officials and bankers, claimed that the Finance Ministry expedited a proposal to channel investments into Adani companies, including Adani Ports and Special Economic Zones and Adani Green Energy, arguing that such corporate bonds offered “higher returns” than government securities.

It also claimed that the proposal, coordinated by the Department of Financial Services (DFS) and NITI Aayog, was approved despite internal warnings about the volatility of Adani Group’s securities.

Adani Group, according to the report, told the Washington Post: “We categorically deny involvement in any alleged government schemes to channel LIC’s funds. LIC invests across multiple corporate groups – and the suggestion that Adani’s preferential treatment is misleading. Moreover, LIC has received returns from its exposure to our investment portfolio.”