New Delhi, Oct 27 Questioning the authenticity of media reports claiming the government "pressured" LIC to invest up to $3.9 billion in the Adani Group, J.N. Gupta, former executive director of the Securities and Exchange Board of India (SEBI), on Monday said that there seemed to be a hidden agenda behind such reports.
Speaking to IANS, Gupta said that we have witnessed the same with a report from the short-selling firm Hindenburg, which was proven to be completely false and misleading.
He further stated that LIC's investment process is very complex.
"The government insurance company does not purchase shares simply on the word of a top official; there are strict rules in place," Gupta said.
Elaborating on LIC's investment process, he said that LIC does not invest in the same way as a mutual fund, individual investor, or foreign investor.
Because insurance policies are long-term, the government insurance company invests for periods of up to 30-40 years, and they have a certain process, Gupta added.
Earlier, top experts on Monday raised questions over the timing of a recent report alleging government pressure on the Life Insurance Corporation of India (LIC) to invest in the Adani Group, calling it a deliberate attempt to spark controversy ahead of the upcoming Bihar elections.
They argue that the report appears politically motivated, especially when India’s economy is showing signs of strong growth and market confidence.
Commenting on the issue, Shriram Subramanian, Founder and MD of InGovern Research Services, told IANS that politicising investment decisions by India’s largest insurer does not serve the interests of investors or the broader economy.
"When foreign investors can invest in Indian companies and earn profits, why can’t LIC do the same?" he asked.
The debate follows a US-based media outlet that published an article alleging that the Centre "pressured" LIC to invest up to $3.9 billion in the Adani Group, including $568 million (Rs 5,000 crore) in May 2025.
Experts point out that foreign investors continue to profit from Indian infrastructure firms, so questioning LIC’s investments seems inconsistent and potentially aimed at undermining domestic institutions.
Political analyst Tehseen Poonawalla also criticised the narrative targeting the Adani Group, saying that similar attacks had been launched in the past through short-selling reports that later proved baseless.
“This hit-and-run policy against Indian companies can harm the country’s economy,” he told IANS.
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