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Life Insurance Corporation (LIC) has rebutted the false allegations reported by The Washington Post, defending all investments made by India's biggest life insurance provider.In a X post, LIC said, "The allegations leveled by the Washington Post that the investment decisions of LIC are influenced by external factors are false, baseless, and far from truth. 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 investment decisions are taken by LIC independently as per Board approved policies after detailed due diligence. Department of Financial Services or any other body does not have any role in such decisions,” the public sector insurer said. "LIC has ensured highest standards of due diligence and all its investment decisions have been undertaken in compliance with extant policies, provisions in the Acts and regulatory guidelines, in the best interest of all its stakeholders. These purported statements in the article appear to have been made with the intentions to prejudice the well settled decision-making process of LIC and also to tarnish the reputation and image of LIC and the strong financial sector foundations in India," it said. The Washington Post report in question alleged that Ministry of Finance officials streamlined a proposal in May 2025 to direct LIC investments totalling USD 3.9 billion to Adani Group firms, while being aware of risks linked to them.Further, the report cited internal documents and interviews with both in-office and ex-government officials, alongside three bank executives familiar with Adani Group finances.The Union Finance Ministry proposed that LIC spread its bond investments between Adani Ports and Special Economic Zone Ltd (APSEZ) and Adani Green Energy Ltd on the basis of their higher yields compared to 10-year government securities, as per The Washington Post report.The US-based media house's investigation further claimed the DFS and NITI Aayog coordinated the proposal, which was later approved by the Finance Ministry, despite internal concerns over the volatility of Adani Group securities.
