Congress Charges Centre with Misusing LIC Funds for Adani Group

The Congress party on Saturday intensified its criticism of the Modi government, claiming that it systematically misused LIC funds to benefit the Adani Group. With over 30 crore Life Insurance Corporation (LIC) policyholders affected, Congress has urged the Public Accounts Committee (PAC) of Parliament to launch a detailed inquiry into allegations that LIC was pressured to make extensive investments in the conglomerate.

Speaking to reporters, Congress general secretary for communications, Jairam Ramesh, highlighted new media reports that purportedly confirm how a ‘Modani joint venture’ manipulated LIC funds. He stated, “Internal documents reveal that Indian officials drafted and pushed through a proposal to invest about ₹33,000 crore of LIC funds in various Adani Group companies in May 2025.”

Ramesh indicated that the investments aimed to restore confidence in Adani’s operations and attract other investors amidst ongoing scrutiny. He further questioned the roles of the Ministry of Finance and NITI Aayog, suggesting they acted under undue pressure to assist a private entity facing financial crises.

“Is this not a textbook case of ‘mobile phone banking’ — where decisions are dictated by powerful corporate interests?” Ramesh queried, underscoring the party’s allegations against the government.

Ramesh also cited alarming statistics, claiming that LIC experienced a significant loss of ₹7,850 crore within just four hours of trading on September 21, 2024, after the indictment of Gautam Adani and his associates in the United States.

He accused the government of offering protection to Adani, alleging a refusal to comply with a US Securities and Exchange Commission (SEC) summons. Ramesh asserted that Adani is embroiled in a ₹2,000 crore bribery scheme tied to overpriced solar power contracts.

The Congress leaders have been vocal about what they describe as a “Modani MegaScam,” asserting that the issue transcends the alleged misuse of LIC and details multiple fraudulent practices.

Specific accusations include the exploitation of central agencies like the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) to coerce private companies into selling their assets to Adani Group. Further allegations point to the rigged privatisation of critical infrastructure projects, such as airports and ports, allegedly favoring Adani.

The Congress party is also investigating potential misuse of diplomatic channels to secure contracts for Adani overseas, and over-invoicing of coal imports that reportedly inflated electricity prices in Gujarat.

Furthermore, Ramesh highlighted questionable power supply contracts in several states, where pre-election agreements led to inflated prices. Notably, the allocation of land for a power plant in poll-bound Bihar at merely ₹1 per acre raises further eyebrows.

Ramesh insisted that these findings warrant a Joint Parliamentary Committee (JPC) investigation. This demand aligns with the Congress’s ongoing “Hum Adani Ke Hain Kaun” (HAHK) campaign that commenced three years ago. He emphasized, “As a first step, at least the PAC must investigate how LIC was forced to invest in the Adani Group,” asserting that such an inquiry falls squarely within Parliament’s purview.

No immediate comment came from the Adani Group or the central government regarding these serious allegations. The controversy continues to develop, drawing sharp public attention and raising questions about corporate governance and financial oversight in India, particularly concerning LIC and its role in national economic affairs.