The Congress party has accused the Modi government of misusing funds from the Life Insurance Corporation (LIC) to financially support the Adani Group, affecting the savings of around 30 crore policyholders. The allegations emerged on Saturday as Congress leaders demanded that the Public Accounts Committee (PAC) of Parliament examine how LIC was allegedly pressured into making significant investments into the conglomerate, raising concerns about potential mismanagement of public funds.
Jairam Ramesh, Congress’s general secretary for communications, highlighted recent media revelations that suggest a coordinated effort to utilize LIC’s resources for the Adani Group’s benefit. He stated that internal documents show Indian officials put forth a plan in May 2025 to invest approximately ₹33,000 crore of LIC’s funds into various subsidiaries of the Adani conglomerate.
Ramesh emphasized that these investments aimed to instill confidence in the Adani Group, encouraging other investors to participate despite ongoing controversies surrounding the conglomerate.
The Congress leader raised serious concerns regarding the involvement of the Ministry of Finance and NITI Aayog, alleging that these bodies acted under undue influence to assist a private entity under scrutiny. He posed a critical question: ‘Is this not a textbook case of mobile phone banking, where decisions are dictated by powerful corporate interests?’
Highlighting the financial repercussions of such actions, Ramesh cited a staggering ₹7,850 crore loss incurred by LIC in just four hours of trading on September 21, 2024, following allegations against Gautam Adani and several associates in the United States. He accused the government of providing protection to Adani by failing to respond to summons from the US Securities and Exchange Commission.
Ramesh claimed that Adani had been implicated in a ₹2,000 crore bribery scheme to secure lucrative solar power contracts, raising further allegations of corruption and impropriety.
The Congress labeled the unfolding situation as a ‘Modani MegaScam,’ suggesting it extends beyond mere LIC investments. Ramesh detailed several elements of the alleged scam, including:
- A misuse of central agencies like the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and Income Tax Department to pressure private firms into selling assets to the Adani Group.
- Arranged privatisations of airports, ports, and vital infrastructure projects secured for Adani’s benefit.
- Utilization of elevated diplomatic channels to obtain contracts for the group abroad.
- Over-invoicing of coal imports through associates, which reportedly inflates electricity prices in Gujarat.
- Pre-election electricity supply contracts at exorbitant rates in BJP-ruled states such as Madhya Pradesh, Rajasthan, and Maharashtra.
- Land allocations for power plants in Bihar at an unrealistic ₹1 per acre.
Ramesh asserted that these serious allegations require a thorough investigation by a Joint Parliamentary Committee (JPC), a demand the Congress has consistently pushed since initiating its campaign, ‘Hum Adani Ke Hain Kaun’ (Who is Adani to Us) three years ago. He emphasized that the PAC should commence its inquiry into how LIC was compelled to invest in the Adani Group.
At the time of publication, there had not been any response from either the Adani Group or the Union government concerning these allegations.
