LIC refutes Washington Post claims of receiving or issuing document alleging external influence on investment decisions

Life Insurance Corporation of India (LIC), on Tuesday, reaffirmed that it has neither issued nor received any of the documents referenced in the Washington Post report, which claimed that its investment decisions in the Adani Group were influenced by external factors.

Refuting the allegations levelled by The Washington Post, the insurer said, in a social media post, “LIC categorically clarifies that the documents mentioned have not been issued by LIC, nor have any such documents been received by LIC. Furthermore, LIC has not received any instructions from the Government regarding investments in any entity under this group."

Washington Post allegations on LIC

According to The Washington Post, Indian officials had prepared a proposal to direct around $3.9 billion ( ₹32,000 crore) from LIC into Adani Group companies.

The report, citing internal documents, further stated that LIC’s investment decision was coordinated by representatives from the Department of Financial Services (DFS), the Ministry of Finance (MoF), LIC, and the government think tank NITI Aayog.

“The allegations leveled by the Washington Post that the investment decisions of the Corporation are influenced by external factors are false, baseless, and far from truth. No such document or plan as alleged in the article has ever been prepared by the Corporation, which creates a roadmap for infusing funds by the Corporation into Adani group of companies," the company said in an exchange filing dated October 25.

The company further clarified that the investment decisions are taken by the corporation independently as per board approved policies after detailed due diligence and department of financial services or any other body does not have any role in such decisions.

“The Corporation has ensured highest standards of due diligence and all its investment decisions have been undertaken in compliance with extant policies, provisions in the Acts and regulatory guidelines, in the best interest of all its stakeholders. These purported statements in the article appear to have been made with the intentions to prejudice the well settled decision-making process of the Corporation and also to tarnish the reputation and image of the Corporation and the strong financial sector foundations in India,” the company added.

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