Archive · 2 Dec 2025
Finance Ministry Denies Advising LIC on Adani Investments
The Finance Minister of India, Nirmala Sitharaman, told the Parliament that the Finance Ministry does not advise or direct the Life Insurance Corporation of India (LIC) on its investment decisions.
LIC makes its own decisions about where to invest money, following strict rules and checks.
The Minister explained that these investments are made after careful study and following the rules set by the Insurance Act, 1938, and other regulatory bodies.
The Minister's statement was in response to a report by the Washington Post, which suggested that the Finance Ministry had influenced LIC to invest in the Adani Group.
The Washington Post report claimed that officials in the Finance Ministry helped draft a plan to channel LIC funds into Adani companies.
The Adani Group has denied receiving any preferential treatment.
LIC has invested a significant amount of money in various companies, including those in the Adani Group, and its investments are governed by strict regulations to ensure everything is done properly.
Finance Minister Nirmala Sitharaman stated that the Finance Ministry does not advise or direct LIC on its investment decisions.
LIC's investments in Adani Group, totaling ₹48,284.62 crore in equity and debt, were made following due diligence and established SOPs.
LIC's investment decisions are governed by the Insurance Act, 1938, and regulations from IRDAI, RBI, and SEBI.
The Washington Post reported that Finance Ministry officials allegedly helped draft a plan to channel LIC funds into Adani companies.
LIC's largest equity exposures span both public and private sector leaders, including State Bank of India, Reliance Industries, and Infosys.
- Who
- Finance Minister Nirmala Sitharaman, Life Insurance Corporation of India (LIC), Adani Group, Washington Post, Opposition Leaders
- What
- Finance Ministry's denial of advising LIC on investments in Adani Group, Washington Post's allegations of influence, LIC's investment decisions and governance
- When
- December 1, 2025 (Parliament response), October 25, 2025 (Washington Post report)
- Where
- New Delhi, India
- Why
- To clarify the Finance Ministry's role in LIC's investment decisions and address allegations of orchestrated investments in Adani Group
Government and LIC
Washington Post and Opposition Leaders
Influence on LIC's Investment Decisions
Government and LIC
LIC's investments in Adani Group were made independently following due diligence and established SOPs. The Finance Ministry does not advise or direct LIC on its investment decisions.
Washington Post and Opposition Leaders
The government allegedly drafted and pushed through a proposal to steer investments to Adani's businesses from LIC, indicating external influence on LIC's investment decisions.
- LIC's Investment in Adani Group
- ₹48,284.62 crore in equity and debt
- LIC's Investment in Adani Ports and SEZ
- ₹5,000 crore in secured non-convertible debentures (May 2025)
- LIC's Top Public-Sector Equity Holdings
- State Bank of India, Coal India Ltd, Oil and Natural Gas Corporation Ltd, Punjab National Bank, General Insurance Corporation of India
- LIC's Top Private-Sector Equity Investments
- Reliance Industries, Infosys, Tata Consultancy Services, HDFC Bank, Hindustan Unilever
- Washington Post Allegations
- Finance ministry officials allegedly helped draft a plan to channel LIC funds into Adani companies
- Adani Group's Debt Increase
- 20% over the 12 months ending in June 2025
- LIC's Investment Governance
- Insurance Act, 1938, and regulations from IRDAI, RBI, and SEBI
- LIC's Investment in Nifty 50 Companies
- ₹4,30,776.97 crore (45.85% of its total equity investment as of 30th Sept 2025)
Sources
FM says Finance Ministry does not advise LIC on investments, Adani investments as per SOPs
Finance Ministry says LIC made Adani investments independently after due diligence
Finance ministry rejects Washington Post's claims of influence on LIC investments in Adani firms
Finance Ministry does not issue any direction to LIC on investment of funds: FM Sitharaman
No direction to LIC on Adani investments; all decisions based on SOPs, Govt tells Lok Sabha
Finance Ministry Does Not Issue Advisory to LIC on Investment Decisions: Sitharaman
LIC exposure to Adani firms at Rs 48,285 crore
Sitharaman says Finance Ministry does not advise LIC, Adani investments ‘made as per SoP’
Finance Ministry Does Not Issue Any Direction To LIC On Investment Of Funds: Finance Minister Nirmala Sitharaman
FinMin: Equity exposure of LIC to Adani Group firms less than 5%
'LIC Made Adani Investments As Per SOP, No Ministry Interference': N Sitharaman
