New Delhi, 25 Oct

The Congress on Saturday demanded that Parliament’s Public Accounts Committee (PAC) investigate the Life Insurance Corporation of India (LIC) following a Washington Post report claiming the insurer made massive investments in Adani Group securities after the conglomerate’s shares fell sharply.

Congress general secretary Jairam Ramesh alleged that the savings of LIC’s 30 crore policyholders were “systematically misused” to benefit the Adani Group.

“Internal documents reveal that Indian officials drafted and pushed through a proposal to invest about Rs 33,000 crore of LIC funds in various Adani Group companies in May 2025,” Ramesh said. The purported aim was to “signal confidence in the Adani Group” and “encourage participation from other investors”.

Congress president Mallikarjun Kharge criticised the government over the alleged investments, asking whether Modi’s administration was “filling the pockets of his best friend” at the expense of policyholders. He added that LIC suffered “a staggering Rs 7,850 crore loss” in just four hours of trading on September 21, 2024, following the US indictment of Gautam Adani and seven associates.

The PAC probe, the party said, should examine if officials acted under undue pressure from the Ministry of Finance or NITI Aayog to support a private company facing funding difficulties.

LIC, however, denied the allegations, calling them “false, baseless, and far from the truth”. The public insurer stated that no such document or roadmap existed for investing in the Adani Group and that all decisions were made independently as per Board-approved policies and due diligence.

Congress also highlighted broader allegations of what it termed the “Modani MegaScam”, including misuse of investigative agencies such as the ED, CBI, and Income Tax Department to consolidate Adani’s holdings. The party alleged rigged privatisation of airports and ports, over-invoiced coal imports by Adani associates, pre-election electricity agreements at high rates, and land allocations at nominal rates in Bihar for power projects.

“The entirety of this mega-scam can only be investigated by a Joint Parliamentary Committee of Parliament that the INC has been demanding for almost three years,” Ramesh said.

The party argued that the PAC should first investigate LIC’s alleged forced investments in the Adani Group, as it falls well within the committee’s mandate.

LIC’s statement reiterated that investment decisions comply with extant regulations, Acts, and guidelines, and that the Department of Financial Services or any other body does not influence these decisions. The Adani Group did not immediately respond to Congress’ allegations.

The controversy comes after US short-seller Hindenburg Research accused Adani Group of stock manipulation, although the Securities and Exchange Board of India (SEBI) later cleared the company. Congress has repeatedly criticised the government’s handling of the issue, calling for transparency and accountability in LIC’s investment decisions.

This development has revived debate over the role of public sector funds and alleged cronyism in India’s corporate sector.