Tehseen Poonawalla Backs LIC; Rejects Claims Of Political Influence

Political analyst Tehseen Poonawalla has firmly defended the autonomy and credibility of the Life Insurance Corporation of India (LIC) amid renewed debate over its investments in the Adani Group.

His remarks followed Finance Minister Nirmala Sitharaman’s recent parliamentary statement on December 1, 2025, asserting that the government never directed LIC to invest in any corporate entity.

Poonawalla underscored that LIC is a professionally managed financial institution, handling ₹55 lakh crore of India’s savings and an equity portfolio of ₹15 lakh crore. He emphasised that such a vast and regulated organisation cannot invest money based on political orders or ministerial preferences.

According to him, LIC’s internal rules prohibit it from investing more than 1% of its total funds in any single corporate group, ensuring disciplined and risk-managed decision-making.

Addressing scrutiny over LIC’s exposure to the Adani Group, he highlighted that LIC invested around ₹30,000 crore in Adani companies in 2017, and the valuation has since grown to nearly ₹65,000 crore, demonstrating gains rather than losses.

He pointed out that one Adani entity had issued a AAA-rated bond series worth around ₹5,000 crore, attracting investments not only from LIC but also from multiple international banks and global financial institutions.

Autonomy, Trust & Transparency

Poonawalla insisted that LIC has acted in line with standard operating procedures and has consistently maintained its professional integrity.

He urged political leaders and the public to keep LIC ‘out of politics’, stressing that neither the Prime Minister nor the Finance Minister can direct LIC’s investment decisions.

“India trusts LIC, and LIC works for India,” he said, adding that as a critic of the ruling party himself, he nevertheless stands firm in defending national institutions.

At the same time, Poonawalla encouraged LIC to strengthen its communication practices. He noted that, as a publicly owned company funded by taxpayers, LIC should maintain proactive transparency with parliamentary committees and regularly disclose its investment patterns to reaffirm trust.

The controversy resurfaced amid global attention, with recent international media reports questioning state-owned enterprises’ exposure to large corporate conglomerates.

Official figures indicate LIC’s exposure to Adani companies stands at ₹48,285 crore, forming less than 5% of its total equity portfolio, aligning with regulatory norms.

Poonawalla concluded by urging unity in safeguarding the credibility of national institutions and expressed hope that LIC will continue to uphold its legacy of financial security and stability for millions of Indians.

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