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The Department of Financial Services (DFS) and Niti Aayog have no role in the investment decisions of the Life Insurance Corporation of India (LIC), government officials clarified on Saturday, rejecting allegations that officials had planned to channel LIC funds into Adani Group companies. Officials emphasised that LIC’s investment policies are governed by its board-approved frameworks and are subject to oversight by independent regulators such as the Insurance Regulatory and Development Authority of India (IRDAI) and the Securities and Exchange Board of India (Sebi). LIC exposure to Adani much smaller than other conglomerates According to officials, LIC’s exposure to the Adani Group stands at around Rs 60,000 crore, representing 4% of its equity holdings. In comparison, the insurer’s exposure to the Tata Group is estimated at Rs 1.3 lakh crore, to the Aditya Birla Group at Rs 42,600 crore, to Reliance Industries at Rs 1.3 lakh crore (6.9%), to ITC at Rs 82,800 crore (15.9%), to HDFC Bank at Rs 64,725 crore (4.9%), and to SBI at Rs 79,361 crore (9.6%). Officials said the insurer’s investment portfolio reflects diversified exposure across top-performing Indian corporations, consistent with its objective of optimising returns for policyholders. Allegations termed ‘ill-timed and misleading’ Officials, speaking on condition of anonymity, expressed suspicion over the timing of the allegations published by The Washington Post, which suggested that government officials had drafted plans to direct LIC funds into Adani entities.They suggested that the report’s release — coinciding with a surge in festive season sales and strong macroeconomic indicators — appeared “timed to destabilise India’s robust economy.” “The claims are baseless,” an official said. “LIC is a listed company, and all its investments are made transparently under board and regulatory oversight.” LIC follows strict regulatory and audit processes Officials further explained that LIC, which manages assets worth over Rs 55 lakh crore, invests in both equity and debt instruments based on market outlook, asset-liability management objectives, and return optimisation for stakeholders. LIC’s annual investment is about Rs 5.5 lakh crore, and the transactions referred to in the Washington Post report account for less than 1% of this total. They also clarified that LIC’s participation as the sole bidder in certain bond issues, such as the Rs 5,000 crore Adani Ports and SEZ issue, followed proper approval processes and was based on the AAA credit rating of the securities. “LIC did not invest in Adani Green bonds,” an official added. Transparent investment operations “LIC’s investments follow guidelines prescribed in a transparent and regulated manner and are subject to concurrent audits, board reviews, and IRDAI scrutiny,” an official said. The officials reiterated that LIC’s investments are made solely on commercial and prudential considerations, without any interference from the DFS, Niti Aayog, or any other government entity.
