The Congress party on Saturday accused the Indian government of misusing the savings of approximately 30 crore Life Insurance Corporation (LIC) policyholders to benefit the Adani Group. Congress demands that Parliament’s Public Accounts Committee (PAC) conduct a thorough investigation into allegations that LIC was forced into substantial investments in the conglomerate.
Congress general secretary for communications Jairam Ramesh highlighted recent media revelations that exposed what he termed the “Modani joint venture”. According to Ramesh, these revelations reveal that LIC misused the savings of millions of Indians.
“Internal documents indicate that Indian officials prepared and advocated for a proposal to invest around ₹33,000 crore of LIC funds in various Adani Group companies in May 2025,” Ramesh stated. He elaborated that the aim was to project confidence in the Adani Group, incentivizing other investors to engage.
Ramesh raised concerns about the involvement of the Ministry of Finance and NITI Aayog, alleging that both institutions acted under duress to assist a private conglomerate facing financial challenges. “Is this not a textbook case of ‘mobile phone banking,’ where powerful corporate interests dictate decisions?” he questioned.
Highlighting the ramifications of these investments, Ramesh noted that LIC endured a staggering loss of ₹7,850 crore in just four hours of trading on September 21, 2024. This occurred after Gautam Adani and seven associates faced indictment in the United States.
He further accused the government of offering protection to Adani, stating that the Modi administration had refrained from responding to the US SEC summons to the Adani Group for almost a year.
According to Ramesh, Adani stands accused of orchestrating a ₹2,000 crore bribery scheme aimed at securing exorbitant solar power contracts. He termed the entire episode a “Modani MegaScam” that extends beyond just LIC’s investments.
He claims this alleged scam encompasses several infractions, including the misuse of central agencies like the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and the Income Tax Department. Ramesh argued these institutions pressured private firms into selling their assets to the Adani Group.
Additionally, he alleged rigging of privatisation activities involving airports, ports, and other vital projects to favour the Adani conglomerate. Ramesh highlighted the alleged use of diplomatic channels to secure international contracts for the group.
Another serious allegation involved over-invoicing coal imports through associates Nasser Ali Shaban Ahli and Chang Chung-Ling, which purportedly inflated electricity costs in Gujarat. He also cited pre-election contracts to supply power at inflated rates in Madhya Pradesh, Rajasthan, and Maharashtra.
Bihar’s poll-bound power plant land allotment for ₹1 per acre drew Ramesh’s critique, emphasizing how these irregularities expanded the scope of the alleged scam. He insisted that these developments necessitate a Joint Parliamentary Committee (JPC) inquiry, echoing the demands of the Congress party’s “Hum Adani Ke Hain Kaun” (HAHK) campaign launched three years ago.
“As a preliminary measure, the PAC must investigate how LIC was coerced into investing in the Adani Group,” Ramesh said, asserting that such inquiries are within Parliament’s jurisdiction.
No immediate response came from either the Adani Group or the Union government regarding these serious allegations.
