Explainer: How The Washington Post’s Article On LIC-Adani Link Spins False & Misleading Narratives

Ahead of the Bihar Assembly elections and the Winter Session of Parliament, The Washington Post published an article alleging that the Government of India ‘pressured’ the Life Insurance Corporation of India (LIC) to invest $3.9 billion in the Adani Group, including ₹5,000 crore in May 2025.

However, the report has been strongly refuted by LIC, which described it as ‘false, baseless, and far from the truth’.

Former LIC Chairman Siddhartha Mohanty condemned the report, stating that the claim of government interference was ‘a completely misleading narrative’.

He stated that LIC makes its investment decisions solely based on internal frameworks and independent evaluations.

Sources close to the matter clarified that The Washington Post wrongly assumed Adani Ports & SEZ required funds to refinance existing debt.

In reality, the funds were allocated for the buyback of bonds maturing between 2027 and 2029, as stated in the company’s May 30, 2025, media release.

Following this, Adani Ports launched a $450 million bond buyback offer in July 2025, underscoring its robust liquidity. Contrary to the report’s assertion, no refinancing was due at the time.

False Claims About Legal Charges and Debt Levels

The article’s second paragraph falsely alleged that US authorities charged Adani with bribery and fraud and that major Western banks hesitated to lend.

In truth, global institutions such as BlackRock, Apollo’s Athene Life, Rabobank, and DZ Bank have made significant investments in Adani entities this year, reflecting continued international confidence.

Adani’s debt levels have also declined. The company’s FY25 debt reduced to ₹36,422 crore from FY24, while its EBITDA stood at ₹89,218 crore.

With a total long-term debt of ₹2.65 lakh crore and a cash balance of ₹53,843 crore, the group’s leverage position remains strong.

Adani Ports & SEZ holds a ‘AAA’ rating from all four leading Indian rating agencies — the highest possible grade denoting exceptional safety.

Fitch has rated its subsidiary ‘BBB–’, equivalent to India’s sovereign rating, affirming global confidence in the firm’s financial stability.

Experts argue that describing these investments as ‘too risky for LIC’ is inaccurate and misrepresents the insurer’s prudent investment practices.

Adani’s bonds meet LIC’s investment framework, which mandates high credit quality and long-term security.

LIC’s Proven Investment Track Record

LIC’s debt exposure to Adani accounts for less than 0.3% of its overall debt portfolio.

The insurer has similarly subscribed to high-grade issuances by Vedanta, L&T Finance, NIIF Infra Fund, Shriram Finance, and Reliance Industries.

Moreover, LIC’s ₹5,000 crore investment in Adani Ports yields 7.65% — offering an additional ₹950 crore profit compared to a similar 15-year Government Security.

With assets under management exceeding ₹55 lakh crore, LIC remains a pillar of India’s financial stability.

Its diversified investments across leading companies such as Reliance, Tata Group, ITC, SBI, L&T, HDFC, and Infosys further reinforce its risk-averse, transparent approach.

Experts believe The Washington Post’s article relies on incomplete data, false assumptions, and politically timed narratives.

Official records and financial statements show that neither the Government of India nor LIC acted under pressure.

Instead, LIC’s investments in Adani remain financially sound, strategically prudent, and fully compliant with its internal guidelines — reaffirming both institutions’ credibility amid global scrutiny.

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