New Delhi: Two months after it was reported that the Narendra Modi government quietly devised a $3.9 billion plan to rescue Gautam Adani’s debt-laden conglomerate by directing money from the state-owned Life Insurance Corporation of India, the government has said in a parliament reply that LIC has invested a total of Rs 48,284.62 crore – Rs 38,658.85 crore in equity and Rs 9,625.77 crore in debt, in Adani Group companies.

This written reply, by Union finance minister Nirmala Sitharaman, is based on data available till September 30 and added that LIC invested Rs 5,000 crore in secured non-convertible debentures of Adani Ports and Special Economic Zone Limited.

In its note to a question by MPs Mohammed Jawed and Mahua Moitra the government did not provide a complete list of all private companies in which LIC has invested and said that providing an "exhaustive, granular list of companies, in which LIC has invested, may not be commercially prudent and could affect LIC’s operational debt interests."

The MPs had asked:

(a) whether it is a fact that the Life Insurance Corporation of India (LIC) has recently made investment into the Adani Group despite ongoing regulatory scrutiny and if so, the details of the total investment made in this regard;

(b) whether any directions or advisories were issued by the Ministry or DFS to LIC or other public sector financial institutions to invest in Adani Group companies, if so, the details thereof and the reasons therefor;

(c) the details of due diligence, risk assessment, and fiduciary compliance undertaken prior to such investments, including whether SEBI or RBI were consulted;

(d) whether the Government has reviewed potential implications of such investments for policyholders, market integrity, and institutional independence and the preventive steps taken/being taken to ensure transparency and accountability;

(e) the number of Adani Group companies in which LIC currently holds investments and the total value of such investments company-wise along with the details of the first investment made by LIC in Adani Group companies, including the year and the amount invested; and

(f) the list of all private sector companies in which LIC has made investments along with the corresponding amount invested in each company?

LIC's decision to invest Rs. 5,000 crore in secured NCDs issued by Adani Ports Special Economic Zone (APSEZ) in May 2025, according to the government, came "after doing due diligence following established Standard Operating Procedures (SOPs) as per their Board approved policies."

In the reply, the finance ministry claimed that it "does not issue any advisory/direction to LIC" in connection with matters related to investment of LIC fund.

"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 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."

A Washington Post investigation had detailed how the Union finance ministry, its Department of Financial Services (DFS), LIC, and the policy think tank NITI Aayog coordinated an investment strategy that funnelled billions into Adani Group bonds and equity. The plan involved a $585-million bond issue for Adani Ports that LIC financed alone, the report had said.

The government's reply has said that broadly, LIC's investments reflect "that it invests in the top 500 companies listed on NSE and BSE and a major portion of LIC’s investment currently is in the larger companies out of these." The book value of LIC’s investment in Nifty 50 companies, according to the government, as on September 30, 2025, is Rs 4,30,776.97 crore, which is 45.85% of its total equity investment.

LIC's debt investment in Adani Ports and SEZ Ltd, at Rs 9,625.77 crore, is its fifth-highest debt investment in the private sector.

LIC’s exposure is across seven Adani-linked entities – Adani Enterprises Ltd, Adani Total Gas Ltd, Adani Green Energy Ltd, Adani Energy Solutions Ltd, APSEZ, Ambuja Cements Ltd and ACC Ltd. The government has also released LIC’s ranking of exposure to Adani group companies compared with all its public and private holdings.

The government also claimed, "The Investment functions of the corporation are verified by Concurrent Auditors, Statutory Auditors, System Auditors, Internal Financial Control (IFC) Auditors and internal Vigilance team. Periodical inspections are also done by the sector Regulator IRDAI in this regard. There is no direct oversight by Government on investments made by LIC."

The chart furnished by the government below shows there was limited exposure to Adani companies in 2007.

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