The finance ministry does not issue any advice or guidance to Life Insurance Corporation of India (LIC) on investment-related matters, Finance Minister Nirmala Sitharaman told Parliament on Monday, reiterating that the state-run insurer operates independently.
“Investment decisions of LIC are taken only by LIC after strict due diligence, risk assessment and compliance with fiduciary powers and are governed by the provisions of the Insurance Act, 1938 as well as regulations issued by the Insurance Regulatory and Development Authority of India (Irdai), Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) (wherever relevant),” it said when asked by LIC star from time to time. The Adani Group.
In her reply on the first day of the winter session, she added that the government did not conduct any direct oversight of LIC’s investments as it confirmed that the insurer had invested ₹5,000 crore in secured non-convertible debentures issued by Adani Ports and Special Economic Zone (APSEZ) in May 2025.
A report by The Washington Post
The question follows the investigation The Washington Post. A US newspaper reported on October 25, citing internal government documents and interviews, that officials at the Treasury Department and the Department of Financial Services helped design and push through a plan to funnel about $3.9 billion in LIC funds to billionaire Gautam Adani’s companies as he faced growing legal scrutiny in the US and a tightening of access to global credit.
The report claimed it was a strategy to “signal confidence” in the Adani group and “encourage participation from other investors” as the billionaire’s conglomerate saw total debt rise 20% in the 12-month period ending in June, according to company filings.
The conglomerate denied receiving any preferential treatment, while LIC and the Treasury Department did not respond to inquiries from The Washington Post.
As of September 30, 2025, LIC’s total exposure to the Adani Group is at par ₹48,284.62 crore of equity and debt, comprising Adani Enterprises, Adani Ports & SEZ, Adani Total Gas, Adani Green Energy, Adani Energy Solutions, ACC and Ambuja Cements.
LIC’s largest equity exposures include leading public and private sector entities. Its major public sector holdings are concentrated in State Bank of India, Coal India Ltd, Oil and Natural Gas Corporation Ltd, Punjab National Bank and General Insurance Corporation of India, while its largest private sector equity investments include Reliance Industries, Infosys, Tata Consultancy Services, HDFC Bank and Hindustan Unilever.
In debt, LIC’s largest public sector exposures are to Power Finance Corporation, Indian Railway Finance Corporation, REC, National Highways Authority of India and State Bank of India, while its largest private sector investments include HDFC Bank, Reliance Industries, ICICI Bank, Shriram Finance and Adani Ports & SEZ.
