A recent report by Washington Post has created great concern across India. This revelation shows that the Modi government used huge funds of Life Insurance Corporation of India (LIC) to support Adani Group. This step raises serious questions on the use of public funds and the independence of government financial institutions. Many people are wondering whether this is benefiting a close friend at the expense of common citizens.
This situation comes after several financial challenges for Adani Group. These challenges were compounded by the Hindenburg Report in 2023 and, later, following US legal action. Washington Post findings show that a deliberate attempt was made to use LIC, a public sector company, to save a private company.
Adani’s Financial Challenges And U.S. Allegations
Adani Group first faced major scrutiny in 2023 following the Hindenburg Research Report. Due to this report, the company’s stock prices fell rapidly and significantly. Adani shares fell 32% in a single day.
U.S. Securities and Exchange Commission allegations
On September 21, 2024, the situation worsened. U.S. The Securities and Exchange Commission (SEC) accused Gautam Adani and several of his associates of corruption in India. The SEC filed these charges in a US court. These allegations allegedly involved amounts of more than ₹2,000 crore. Due to this action of SEC, Adani immediately came under suspicion in the global financial system. Due to this allegation, there was a huge fall in the shares of Adani’s company. This fall also caused loss to LIC, which had already invested in Adani. The day U.S. Charges were filed in, same day LIC suffered a market loss of ₹7,850 crore in just four hours.
LIC’s Big Investment In Adani Bonds
U.S. Following the allegations, foreign banks and investors started withdrawing from Adani’s companies. This made it difficult for Adani to raise money from external sources. To raise funds, Adani’s companies issued new bonds. Initially, LIC and State Bank of India (SBI) had invested ₹525 crore in Adani. However, when other investors did not come forward to buy Adani’s new bonds, LIC decided to invest a huge amount. Public sector company LIC alone bought these bonds worth ₹32,700 crore (or $3.9 billion).
Who is in danger?
The money LIC invests belongs to its 30 crore policyholders across India. These are common citizens who invest their savings in insurance policies. Investing such a huge amount in the same private group, especially when serious allegations have been made against such a group, raises many questions. Many people are wondering whether this has put the policyholders’ money in great danger. The Washington Post reports that the move was not just a business decision. Rather, it was a deliberate action involving lofty government departments.
Allegations Of Government Interference And Influence
The Washington Post report, which is based on insider documents, claims that Department of Financial Services (DFS) and NITI Aayog officials created a secret plan in May 2025. The objective of this plan was to invest LIC funds in Adani’s companies. This shows that the government was directly involved in using government money to help a private company. Although LIC and Adani deny any wrongdoing, critics say that when other investors were hesitant, such a huge investment could not have been made without political interference. They raise the question whether the board of directors of a public sector company will automatically take such a huge financial risk.
Benefit to “Gautam Bhai”
The report claims that this is not just “crony capitalism”. This is “direct loot” from the insurance policies of common Indians. Critics emphasize that when the government is promoting the Direct Benefit Transfer (DBT) scheme for the poor, the “real winner” in this case is “Gautam Bhai” (Gautam Adani). He argues that he has become the largest recipient of public funds. Adani’s debt rose 20% last year, yet the government showed “trust” by asking LIC to invest billions.
Large-Scale Concerns And Demands For Investigation
There have been strong reactions to this situation. Congress leaders like Jairam Ramesh and Mallikarjun Kharge have demanded an investigation by the Public Accounts Committee (PAC). They want a complete investigation into these allegations. Critics believe that this could be one of India’s biggest financial scams. They stress the lack of transparency and fairness in funding decisions. They also point to the huge threat that 30 crore policyholders could face if Adani’s business faces challenges in the future.
Silence of mainstream media
Many observers have observed that while international media outlets such as the Washington Post reported on this, most mainstream Indian media remained silent. This silence further increases people’s concerns and questions about accountability.
Modi’s Administration And Allegations Of Bias
Since 2014, when Modi came to power, critics claim there has been a clean pattern. They say that “Adani is India” under Modi’s rule. He explains how Adani has controlled national resources like ports and airports through “selective bids”.
The charges include:
- Monopoly on resources: Adani gets special treatment in infrastructure projects.
- International support: According to the report, Modi helped Adani win contracts in other countries like Sri Lanka and Bangladesh.
- Acquisition of companies: Companies were allegedly forced to sell Adani at lower prices due to pressure from agencies like ED, CBI and Income Tax.
Critics argue that this goes against the principles of fair competition and good governance. They compare Adani’s rapidly growing wealth (from $8 billion to more than $100 billion) since 2014 to unfulfilled promises to double farmers’ incomes.
A Major Threat To Public Trust
The Washington Post’s revelations raise fundamental questions about financial accountability and the security of public money. The alleged diversion of LIC funds to support a private group facing serious international charges is a matter of great concern. This indicates betrayal of millions of policyholders who depend on LIC for their financial security. This issue is not just about a company or a businessman. It is about the fairness of the financial system and the role of the government in protecting the investments of its citizens. The public has the right to know whether their hard-earned money is truly safe and whether financial institutions operate without any political influence.
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