Timing of LIC-Adani report suspicious, deliberate attempt to create controversy before Bihar polls: Experts

New Delhi, Oct 27 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 published an article alleging that the Government of India “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.

Poonawalla added that LIC manages assets worth Rs 57 lakh crore, of which Rs 14.5 lakh crore is in equities.

Its total exposure to the Adani Group stands at around Rs 56,000 crore -- less than 1 per cent of its overall portfolio.

“LIC has only gained from its investment in Adani Group, not lost,” he emphasised.

The LIC has already issued an official rebuttal to The Washington Post article, categorically describing it as "false, baseless, and far from the truth".

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