New Delhi, October 25, 2025: A new investigation by The Washington Post has alleged that the Indian government directed nearly $3.9 billion from the state-owned Life Insurance Corporation (LIC) into companies owned by industrialist Gautam Adani, India’s second-richest man.
According to the report, the transfer of funds came at a time when the Adani Group was facing serious financial and legal challenges, including global scrutiny following accusations of stock manipulation and accounting irregularities.
The investigation suggests that the funds may have been used to support and stabilize Adani’s business empire, which saw a steep decline in market value after the Hindenburg Research report in early 2023. That report had accused the group of inflating stock prices and hiding debt — allegations that Adani has strongly denied.
The Life Insurance Corporation of India (LIC), a trusted institution managing the savings of millions of Indians, reportedly invested heavily in Adani companies despite public concerns over financial risks. Critics say the move raises questions about government influence, transparency, and public money being used to benefit private enterprises.
So far, there has been no official statement from the Indian government or LIC regarding the allegations. Meanwhile, opposition leaders have demanded a parliamentary inquiry, calling the issue a “betrayal of public trust.”
The Adani Group, in its response, dismissed the allegations as baseless and politically motivated, stating that all its transactions are “fully compliant with Indian laws and transparent to regulators.”
This latest controversy adds to the ongoing debate over the relationship between big business and the government, with critics warning that such practices could weaken institutional independence and investor confidence.
As political reactions grow, all eyes are now on the government’s next move in addressing these serious financial allegations.
