Home / News / India /  Congress uses Hindenburg to attack govt: 'LIC lost 22,442 cr, but...'

Congress president Mallikarjun Kharge on Sunday raised concerns about the Life Insurance Corporation (LIC) of India's exposure to the Adani group as shares of Adani plunged following a report from US short seller Hindenburg research.

The party chief said that the country's largest life insurer continues to invest more money into Gautam Adani's flagship unit even after LIC shares lost 22,442 crore in just two days due to exposure in Adani Group.

Taking to Twitter, Kharge wrote, “After the Hindenburg exposé — LIC shares have lost 22,442 Cr in just 2 days. LIC is plowing more money into Adani’s flagship unit. LIC is 'Life Insurance Corporation' of India with 29 Cr Policyholders!"

The Congress has also questioned the "silence" of the Union Finance Minister Nirmala Sitharaman and probe agencies after LIC and SBI "lost over 78,000 crore" in market capitalisation of their shares due to exposure in Adani Group.

Congress general secretary Randeep Surjewala said that LIC and SBI continue to invest in the Adani group even after the Hindenburg research report alleged share price manipulation and financial misappropriation by the group.

"LIC is public money! Post Hindenburg Report, the value of LIC investment in Adani Group shares have fallen from 77,000 Crore to 53,000 crore -- loss of 23,500 crore.

"Also, LIC shares have lost 22,442 Crore. Why is LIC still investing 300 crore in Adani Group," Surjewala asked.

The Congress leader claimed that after the publication of the report, the SBI share's market cap has declined by a whopping 54,618 crore.

Also, the loan exposure of SBI and other banks to Adani Group is 81,200 crore, he claimed.

"The question is, why are SBI Employees Pension Fund and SBI Life still investing 225 crore in Adani Group," Surjewala asked.

The Rajya Sabha MP also claimed that between January 24 and 27, the SBI and LIC lost a market cap of 78,118 crore in value of their shares alone.

"The loan exposure of SBI and Invest Value decline of LIC in Adani Group is in addition thereto. Yet... RBI, SEBI, ED, SFIO, CBI, and the FM remain on 'mute' mode," Surjewala said in a series of tweets.

The Congress leader has earlier said that elsewhere "the prime minister would be asked to explain, the finance minister would be sacked and a full investigation would have been ordered."

LIC is an investor in five Adani companies, with stakes ranging from 1% to 9% that was worth a total of 72,268 crore on 24 January – just before the Hindenburg report was published.

The Hindenburg report questioned how the Adani Group used entities in offshore tax havens such as Mauritius and the Caribbean islands.

It said key listed Adani companies had "substantial debt", which put the entire group on a "precarious financial footing".

However, the Adani Group has denied the allegations and termed it a campaign to defame the firm ahead of its follow on a public issue.

With agency inputs

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