Top financial experts have questioned the timing of a recent Washington Post report alleging that the Indian government pressured the Life Insurance Corporation of India (LIC) to invest in the Adani Group. They claim the article is politically motivated, designed to stir controversy ahead of the upcoming Bihar elections. 

They argue the report appears aimed at undermining India’s market confidence at a time when the economy is showing strong growth. Shriram Subramanian, Founder and MD of InGovern Research Services, said politicising LIC’s investment decisions does not serve investors or the broader economy.

“When foreign investors can invest in Indian companies and earn profits, why can’t LIC do the same?” he asked.

The Washington Post alleged that the Government of India “pressured” LIC to invest up to $3.9 billion in the Adani Group, including $568 million (Rs 5,000 crore) in May 2025. However, experts note that global investors continue to profit from Indian infrastructure firms, making such allegations inconsistent.

Political analyst Tehseen Poonawalla said similar narratives against Adani had surfaced before, recalling short-seller reports that were later proven false. “This hit-and-run policy against Indian companies can harm the country’s economy,” he remarked.

Poonawalla added that LIC’s total assets are worth Rs 57 lakh crore, with Rs 14.5 lakh crore in equities and around Rs 56,000 crore — less than 1 per cent — in the Adani Group. “LIC has only gained from its investment in Adani Group, not lost,” he emphasised.

LIC has officially rejected The Washington Post report, calling it “false, baseless, and far from the truth.”

Former LIC officials dismiss allegations of government pressure

Former senior LIC officials have strongly refuted claims of government interference. A retired top official, speaking to IANS on condition of anonymity, said: “In my entire career, not once did any government official call to suggest investing in any particular company.”

He added that LIC’s investment process has always followed rigorous due diligence, free from political influence. The official described such reports as attempts to damage India’s growth story, noting that LIC is a systemically important financial institution trusted by millions of policyholders.

Ex-chairman Siddhartha Mohanty calls report ‘misleading’

Former LIC Chairman Siddhartha Mohanty condemned the Washington Post article, saying: “A misleading narrative has been created by The Washington Post against LIC’s investments in the Adani Group, alleging government interference. I categorically affirm that the Government never interferes, directly or indirectly, in any investment decision of LIC.”

He urged the publication to withdraw what he described as “unverified content.”

People close to the matter said the report falsely claimed that Adani Ports & SEZ needed funds to refinance debt. In reality, LIC’s Rs 5,000-crore investment was meant for a bond buyback between 2027 and 2029 — not refinancing.

Adani Ports later launched a $450 million bond buyback in July 2025. The article’s claim that Adani’s debt was “piling up quickly” was also called false, as Indian companies disclose balance sheets only half-yearly.

In FY25, Adani Ports & SEZ reduced its debt to Rs 36,422 crore, while the Adani Portfolio recorded an EBITDA of Rs 89,218 crore and a cash balance of Rs 53,843 crore. Analysts said these numbers reflect strong financial health, not distress.

Experts say financial facts contradict ‘risky investment’ claim

Industry experts highlighted that Adani Ports holds a ‘AAA’ rating from all four leading domestic agencies, and its international rating of ‘BBB–’ by Fitch equals India’s sovereign rating — making LIC’s investment both sound and prudent.

They pointed out that LIC is receiving an additional 1.26 per cent yield over a comparable 15-year government bond, translating into an extra Rs 950 crore profit.

Debt from LIC constitutes less than 3 per cent of Adani’s total debt, with half coming from overseas investors such as BlackRock, Apollo’s Athene Life, Rabobank and DZ Bank.

Furthermore, Adani is not LIC’s largest equity holding — companies like Reliance, Tata Group, ITC, SBI, L&T, HDFC and Infosys lead the list.

Experts say The Washington Post report misrepresents financial data and relies on unverified assumptions, creating an impression of political bias rather than factual reporting.