(MENAFN- Live Mint) The finance ministry does not issue any advisory or direction to Life Insurance Corporation of India (LIC) on matters related to investments, finance minister Nirmala Sitharaman told Parliament on Monday, reiterating that the state-run insurer operates independently.

“The investment decisions of LIC are taken by LIC alone following strict due diligence, risk assessment, and fiduciary compliance and are governed by the provisions of Insurance Act, 1938, as well as regulations issued by the Insurance Regulatory and Development Authority of India (Irdai), Reserve Bank of India (RBI), and Securities and Exchange Board of India (Sebi) (wherever applicable) from time to time,” she said while answering a starred question on LIC's recent investment in the Adani Group.

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In her response during the first day of the winter session, she added that there was no direct oversight by the government on investments made by LIC, as she confirmed that the insurer had invested ₹5,000 crore in secured non-convertible debentures issued by Adani Ports and Special Economic Zone (APSEZ) in May 2025.

The Washington Post report

The question follows an investigation by The Washington Post. The US newspaper reported on 25 October, citing internal government documents and interviews, that officials in the finance ministry and the department of financial services helped draft and advance a plan to channel roughly $3.9 billion of LIC funds into billionaire Gautam Adani's companies at a time when he was facing increasing legal scrutiny in the US and tightening access to global credit.

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The report alleged it was a strategy to“signal confidence” in the Adani Group and“encouraging participation from other investors” when the billionaire's conglomerate had seen its overall debt rise by 20% over the 12 month period ending in June, according to company filings.

The conglomerate has denied receiving any preferential treatment, while LIC and the finance ministry did not respond to The Washington Post's queries.

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As of 30 September 2025, LIC's total exposure to the Adani Group stands at ₹48,284.62 crore in equity and debt, spanning Adani Enterprises, Adani Ports & SEZ, Adani Total Gas, Adani Green Energy, Adani Energy Solutions, Adani Exports, Adani Power Maharashtra, ACC, and Ambuja Cements.

LIC's largest equity exposures span both public and private sector leaders. Its major public-sector holdings are concentrated in State Bank of India, Coal India Ltd, Oil and Natural Gas Corporation Ltd, Punjab National Bank, and General Insurance Corporation of India, while its largest private-sector equity investments include Reliance Industries, Infosys, Tata Consultancy Services, HDFC Bank, and Hindustan Unilever.

In debt, LIC's largest public-sector exposures are to Power Finance Corporation, Indian Railway Finance Corporation, REC, National Highways Authority of India, and State Bank of India, while its top private-sector investments include HDFC Bank, Reliance Industries, ICICI Bank, Shriram Finance, and Adani Ports & SEZ.

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