The Congress party on Saturday launched a fresh attack against the Modi government, accusing it of misusing the savings of 30 crore Life Insurance Corporation (LIC) policyholders. The allegations specifically target the purported benefits granted to the Adani Group, prompting demands for a comprehensive investigation by Parliament’s Public Accounts Committee (PAC).
Congress general secretary (communications) Jairam Ramesh stated that recent media expose has highlighted a systematic misuse of LIC for the advantage of Adani. He articulated concerns about the ethics involved in such financial maneuvers, calling the link between LIC and the Adani Group the result of improper political pressure.
Ramesh claimed that internal documents indicate a proposal was pushed forward to invest approximately ₹33,000 crore of LIC funds into various Adani companies as early as May 2025. The intent, he suggested, was to project confidence in the Adani Group and entice other investors.
“This raises serious questions of governance,” Ramesh remarked, questioning the roles of the Ministry of Finance and NITI Aayog. He accused both entities of acting under duress to provide support to a conglomerate under financial scrutiny.
In a striking commentary, he described the scenario as a “textbook case of mobile phone banking,” insinuating that pivotal decisions had been influenced by corporate interests rather than the public good.
On September 21, 2024, LIC reported an astounding loss of ₹7,850 crore in just four hours of trading. This drastic decline in value occurred following the indictment of Gautam Adani and seven associates by U.S. authorities, further fueling concerns over the stability of investments made by LIC.
Ramesh emphasized that the government had blatantly shielded Adani, stating its reluctance to respond to a summons from the U.S. Securities and Exchange Commission (SEC) for almost a year. He introduced allegations surrounding Adani’s supposed involvement in a ₹2,000 crore bribery scandal aimed at securing lucrative solar power contracts.
Ramesh branded the entire controversy as a “Modani MegaScam,” highlighting that the scope of the allegations extends well beyond just LIC’s investments. Key assertions made included the exploitation of central agencies like the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and the Income Tax Department to compel private enterprises to divest assets to the Adani Group.
He pointed out various examples that purportedly demonstrate how government entities facilitated advantages to the conglomerate. These included:
- Fraudulent privatisation of critical infrastructure such as airports and ports favoring Adani’s interests.
- Leveraging diplomatic negotiations to acquire contracts abroad for the group.
- Instances of over-invoicing for coal imports, which allegedly led to increased electricity prices across Gujarat.
- Pre-election power contracts in states like Madhya Pradesh, Rajasthan, and Maharashtra at inflated prices.
- The allocation of land at merely ₹1 per acre for a new power plant in poll-sensitive Bihar.
Continuing his assertion, Ramesh called for a Joint Parliamentary Committee (JPC) inquiry into these matters, echoing demands the Congress party has made since its “Hum Adani Ke Hain Kaun” (HAHK) campaign began three years ago.
He stated, “As an initial step, the PAC must investigate how LIC was coerced into investing in the Adani Group.” Ramesh firmly believes that a PAC investigation lies well within Parliament’s jurisdiction.
As of now, there has been no response from either the Adani Group or the Union government in relation to these serious allegations.