LIC has Rs 48,284.62 crore invested in Adani Group as of 30 Sep: Sitharaman

Two months after media reports alleged that the Modi government had quietly crafted a $3.9-billion lifeline for the debt-heavy Adani conglomerate via the state-owned Life Insurance Corporation of India, New Delhi has formally disclosed LIC’s exposure — and insisted everything is above board.

In a written reply to the Lok Sabha, Union finance minister Nirmala Sitharaman said LIC has Rs 48,284.62 crore sunk into Adani Group firms as of 30 September: Rs 38,658.85 crore in equities and Rs 9,625.77 crore in debt instruments. Of this, Rs 5,000 crore went into secured non-convertible debentures issued this year by Adani Ports and Special Economic Zone Ltd (APSEZ).

The assurance came in response to pointed questions from MPs Mohammed Jawed and Mahua Moitra, who sought clarity on why LIC has expanded investments despite regulatory scrutiny of the conglomerate. The government, however, refused to divulge a full roster of LIC’s private-sector investments, arguing that a “granular, exhaustive list” would be commercially unwise and could compromise the insurer’s market position.

The MPs asked whether the Centre or the Department of Financial Services had nudged public-sector financial institutions towards Adani securities, what diligence was performed, and whether watchdogs such as SEBI and the RBI were consulted. They also sought company-wise details of LIC’s first and subsequent Adani exposures, as well as a full inventory of its investments across private firms.

The ministry insisted no directives had been issued: “The investment decisions of LIC are taken by LIC alone,” it said, adding that all moves follow established SOPs, risk protocols and compliance frameworks under the Insurance Act, IRDAI, SEBI and RBI norms. LIC’s May 2025 purchase of APSEZ debentures, it stressed, passed through its internal due-diligence filter.

This government stance contrasts sharply with a recent Washington Post investigation, which described coordinated efforts by the finance ministry, DFS, LIC and NITI Aayog to channel billions into Adani bonds and equity — including a $585-million APSEZ bond issue reportedly financed entirely by LIC.

Parliament was also told that LIC generally invests across the top 500 companies on Indian exchanges, with nearly 46 per cent of its equity book parked in Nifty 50 stocks as of September. The insurer’s Rs 9,625.77-crore debt exposure to APSEZ ranks as its fifth-largest private-sector debt holding.

LIC now holds positions in seven Adani-linked entities — Adani Enterprises, Adani Total Gas, Adani Green Energy, Adani Energy Solutions, APSEZ, Ambuja Cements and ACC — with government data also mapping how these exposures compare across its broader portfolio. A chart tabled in the House shows LIC’s Adani exposure was negligible as recently as 2007.

The finance ministry further underlined that LIC’s investment operations undergo layers of oversight — concurrent, statutory and systems audits, IFC checks, and examinations by IRDAI — though, it emphasised, “there is no direct oversight by Government” on the insurer’s investment choices.