Finance Minister Nirmala Sitharaman stated that the government had not issued any direction or advisory to LIC or any public sector financial institution to invest in Adani Group companies.
Published Dec 04, 2025 | 4:52 PM ⚊ Updated Dec 04, 2025 | 4:52 PM
Union Finance Minister Nirmala Sitharaman. Credit: x.com/nsitharamanoffc
Synopsis: The Union Finance Ministry on Monday said that the Life Insurance Corporation of India (LIC) invested ₹5,000 crore in secured non-convertible debentures issued by Adani Ports and Special Economic Zone in May 2025, taking its total investment in the Gautam Adani-led conglomerate to ₹48,284.62 crore as of 30 September, months after a Washington Post investigation reported that the Centre had devised a plan to channel LIC funds towards the embattled conglomerate.
The Union Finance Ministry has detailed Life Insurance Corporation of India’s (LIC) investments in the Adani Group, months after a Washington Post investigation reported that the Centre had devised a plan to direct funds from the public insurer to help the Gautam Adani-led conglomerate as it faced mounting debt and legal troubles, particularly in the United States.
An excerpt from the Finance Ministry’s written reply.
In a written reply to Starred Question No. 11 in Parliament, Finance Minister Nirmala Sitharaman on Monday, 1 December confirmed that LIC had invested ₹5,000 crore in secured non-convertible debentures (NCDs) issued by Adani Ports and Special Economic Zone (APSEZ) in May 2025, taking the total investment to ₹38,658.85 crore in equity and ₹9,625.77 crore in debt across various Adani Group companies.
The Post, in its report, cited internal documents reportedly produced within the Department of Financial Services and NITI Aayog to outline a proposal to invest approximately ₹32,000 crore of LIC funds in Adani entities, largely through corporate bonds and partly through equity purchases. The Adani Group had denied any involvement of the Centre in LIC’s investment decisions.
Sitharaman’s reply stated that the Union government had not issued any direction or advisory to LIC or any public sector financial institution to invest in Adani Group companies.
According to the Finance Ministry, LIC’s investment operations undergo verification by concurrent auditors, statutory auditors, systems auditors, internal financial control auditors and the insurer’s vigilance unit. Periodic inspections are also conducted by Insurance Regulatory and Development Authority of India (IRDAI).
The investment, the reply said, was made “after doing due diligence following established Standard Operating Procedures (SOPs) as per their Board-approved policies.”
An excerpt from the Finance Ministry’s written reply.
“The investment decisions of LIC are taken by LIC alone following strict due diligence, risk assessment and fiduciary compliance and are governed by the provisions of the Insurance Act, 1938 as well as regulations issued by IRDAI, Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) (wherever applicable) from time to time,” the reply said.
“There is no direct oversight by Government on investments made by LIC.”
As of 30 September 2025, LIC’s book value of investments in the Nifty 50 stood at ₹4,30,776.97 crore, representing 45.85 percent of its total equity exposure.
The ministry said that LIC’s holdings broadly reflect investments across the top 500 companies listed on the NSE and BSE, with a “major portion” concentrated in larger firms.
As of 30 September 2025, LIC held ₹38,658.85 crore in equity across seven Adani Group companies:
An excerpt from the Finance Ministry’s written reply.
LIC’s first recorded investment in the Adani Group within the available dataset dates back to 2007 in Adani Ports and SEZ Ltd, amounting to ₹192.79 crore in combined equity and debt book value.
When clubbed with debt holdings, LIC’s total group-level exposure rises to ₹48,284.62 crore.
As of 30 September 2025, LIC’s total investment book value stood at:
(Edited by Dese Gowda)
