The Congress Party on Saturday accused the Modi government of misusing the funds of approximately 30 crore Life Insurance Corporation (LIC) policyholders to benefit the Adani Group. Party leaders demanded that Parliament’s Public Accounts Committee (PAC) conduct an in-depth investigation into the government’s alleged facilitation of massive investments in the conglomerate.
Congress general secretary (communications) Jairam Ramesh stated that recent media reports have revealed how a so-called ‘Modani joint venture’ systematically exploited LIC and the savings of millions of Indians.
“Internal documents show that officials in India pushed through a proposal to invest around ₹33,000 crore of LIC funds in various Adani Group companies in May 2025,” Ramesh claimed while questioning the motivations behind such a massive investment.
Ramesh highlighted that this strategy aimed to convey confidence in the Adani Group, encouraging other investors to participate. He expressed concern over the involvement of both the Ministry of Finance and NITI Aayog, alleging that these institutions operated under tremendous pressure to support a private conglomerate under financial scrutiny.
“Is this not a textbook case of ‘mobile phone banking’, where decisions are aligned with powerful corporate interests?” Ramesh asked, expressing his disbelief.
LIC Suffers Massive Losses
According to Ramesh, LIC experienced an alarming loss of ₹7,850 crore within just four hours of trading on September 21, 2024, following the indictment of Gautam Adani and seven associates in the United States. He accused the government of shielding Adani, claiming the Modi administration had delayed responding to the U.S. Securities and Exchange Commission (SEC) summons issued to the Adani Group.
He went further to assert that Gautam Adani is embroiled in allegations of a ₹2,000 crore bribery scheme aimed at securing inflated solar power contracts.
Ramesh categorized the unfolding issues as a “Modani MegaScam”, asserting that it goes far beyond the misuse of LIC funds.
The allegations extend to various forms of financial malpractice, including:
- Misuse of central investigative agencies like the ED, CBI, and Income Tax Department to coerce private firms to divest assets to Adani Group.
- Rigged privatisation of crucial infrastructures, such as airports and ports, benefitting Adani.
- Exploitation of diplomatic channels to secure international contracts for the conglomerate.
- Over-invoicing of coal imports through associates, which allegedly inflated electricity prices in Gujarat.
- Awarding of predatory pre-election power supply contracts in regions like Madhya Pradesh, Rajasthan, and Maharashtra.
- Contracting land at an astonishing ₹1 per acre for a power plant project in election-sensitive Bihar.
Ramesh emphasized that these revelations warrant a Joint Parliamentary Committee (JPC) investigation, a demand the Congress Party has voiced since its “Hum Adani Ke Hain Kaun” (HAHK) campaign began three years ago.
“At a minimum, the PAC should initiate an investigation into how LIC was coerced into investing in the Adani Group,” Ramesh insisted, asserting that such an inquiry aligns perfectly with Parliament’s authoritative capabilities.
As of now, the Adani Group and the Union government have not publicly responded to these grave allegations.
