'False': LIC denies Washington Post's report on alleged Adani link
What's the story
The Life Insurance Corporation of India (LIC) has refuted a report by The Washington Post that claimed Indian officials proposed to invest about $3.9 billion from the state-owned insurer into Adani Group companies. LIC termed the allegations as "false" and said they were aimed at tarnishing its reputation and image, as well as that of India's robust financial sector foundations.
Investment integrity
No document or plan prepared: LIC
LIC has strongly denied the claims that its investment decisions are swayed by external factors. The corporation said, "No such document or plan as alleged in the article has ever been prepared by LIC." It emphasized that all investment decisions are made independently according to board-approved policies after detailed due diligence.
Compliance assurance
Highest standards of due diligence maintained
LIC has assured that it maintains the "highest standards of due diligence" in all its investment decisions. The corporation said these decisions are taken in compliance with existing policies, provisions in the Acts and regulatory guidelines, keeping in mind the best interest of all its stakeholders. This statement comes amid allegations of undue political favor and favoritism toward Adani Group.
Market impact
Exposure to Adani Group less than 2%
LIC's exposure to the Adani Group is less than 2% of the conglomerate's total debt. The report also noted LIC's $570 million investment in Adani Ports & SEZ (APSEZ) in May 2023, when the group was under a debt burden and US scrutiny. The Adani Group has denied any involvement in alleged government plans to direct LIC funds.