Finance Ministry Clarifies It Does Not Direct LIC’s Adani Investments
Finance Minister Nirmala Sitharaman has stated that the Ministry of Finance does not advise the Life Insurance Corporation of India (LIC) on its investment decisions, including those made in Adani Group companies. The clarification comes amid ongoing scrutiny of LIC’s substantial holdings in the conglomerate.
Key Takeaways
- Finance Ministry asserts it does not issue any advisory or direction to LIC regarding fund investments.
- LIC’s total investment in Adani Group stands at over Rs. 48,000 crore in equity and debt.
- The insurer has strongly denied a Washington Post report alleging government influence over a $3.9 billion investment plan.
- LIC says all investments follow board-approved policies, due diligence, and regulatory compliance.
Minister’s Statement in Parliament
Responding to queries in the Lok Sabha, Sitharaman provided details of a recent LIC investment. “Life Insurance Corporation of India has invested Rs. 5000 crore in secured Non-Convertible Debentures issued by Adani Ports Special Economic Zone in May 2025, after doing due diligence following established Standard Operating Procedures as per their Board approved policies,” she said.
She categorically added, “Ministry of Finance does not issue any advisory/direction to LIC in connection with matters related to investment of LIC fund.”
Scale of LIC’s Adani Holdings
As per the details shared, LIC’s total exposure to the Adani Group is significant:
- Equity Investments: Book value of Rs 38,658.85 crore across half a dozen listed Adani companies.
- Debt Investments: An additional Rs 9,625.77 crore in the conglomerate’s debt instruments.
Rebuttal to Washington Post Allegations
The statement follows a October report by The Washington Post which claimed the government drafted a proposal to “steer roughly $3.9 billion in investments to Adani’s businesses from LIC.”
LIC had issued a strong rebuttal at the time, calling the allegations “false, baseless and far from truth.” The insurer denied the existence of any government “roadmap” for fund infusion.
“The Department of Financial Services or any other body does not have any role in such decisions…. These purported statements in the article appear to have been made with the intentions to prejudice the well settled decision-making process of LIC,” LIC stated in October.
LIC’s Broader Investment Portfolio
Sitharaman’s written reply also highlighted the diversified nature of LIC’s portfolio. The insurer invests in the top 500 companies listed on the NSE and BSE, with a major portion currently in larger firms within this group.
“The investment decisions of LIC are taken by LIC alone following strict due diligence, risk assessment and fiduciary compliance,” the reply stated, noting governance under the Insurance Act, 1938, and regulations from IRDAI, RBI, and SEBI.
As of September 30, 2025, the book value of LIC’s investment in Nifty 50 companies was Rs. 4,30,776.97 crore, constituting 45.85% of its total equity investment.
