The Congress party has launched a fierce new attack against the Modi government, alleging the systematic misuse of Life Insurance Corporation (LIC) funds to benefit the Adani Group. This allegation emerged during a press conference on Saturday, where Congress emphasized the impact on 30 crore LIC policyholders.
This allegation comes at a crucial time as public scrutiny on government financial practices intensifies. Congress general secretary (communications) Jairam Ramesh specifically called for the Public Accounts Committee (PAC) of Parliament to investigate the purported misuse of funds.
“Fresh media revelations have exposed how this ‘Modani joint venture’ has systematically misused LIC and the savings of millions of Indians,” Ramesh stated emphatically.
He highlighted claims that internal documents indicated a proposal to invest approximately ₹33,000 crore of LIC funds into various Adani Group companies was pushed through as early as May 2025. Ramesh argued this move aimed to instill confidence in the Adani Group amidst growing concerns about its financial practices.
Ramesh raised concerns regarding the complicity of the Ministry of Finance and NITI Aayog, alleging that these institutions acted under pressure to support a private corporate giant under financial scrutiny.
“Is this not a textbook example of ‘mobile phone banking,’ where powerful corporate interests dictate decisions?” Ramesh asked, casting doubt on the political integrity surrounding this investment scheme.
The allegations took a darker turn when Ramesh noted that LIC suffered an incredible ₹7,850 crore loss in just four hours of trading on September 21, 2024. This rapid loss followed legal indictments against Gautam Adani and seven of his associates in the United States.
Ramesh accused the Modi government of protecting Adani, claiming that the administration has delayed responding to a summons from the US Securities and Exchange Commission (SEC) regarding alleged financial misconduct.
He highlighted grave accusations against Adani, including claims of orchestrating a ₹2,000 crore bribery scheme aimed at securing expensive solar power contracts.
In a broader context, Ramesh characterized the unfolding issue as a “Modani MegaScam.” He asserted that this controversy extends far beyond LIC investments to a pattern of misuse involving several governmental and private sectors.
Some specific allegations include the misuse of central agencies like the Enforcement Directorate (ED), the Central Bureau of Investigation (CBI), and the Income Tax Department. According to Ramesh, these agencies pressured private firms into selling their assets to the Adani Group.
Furthermore, he pointed to rigged privatization initiatives of crucial infrastructure projects that seemingly favored Adani’s interests.
Ramesh also detailed allegations of using diplomatic channels to secure lucrative contracts abroad for the Adani Group. One shocking revelation pointed toward the over-invoicing of coal imports through associates Nasser Ali Shaban Ahli and Chang Chung-Ling, purportedly leading to inflated electricity prices in Gujarat.
He criticized the issuance of pre-election power supply contracts at inflated prices in states like Madhya Pradesh, Rajasthan, and Maharashtra, illustrating the extent of alleged malpractices.
Ramesh’s assertions highlight an instance where land was allocated for merely ₹1 per acre for a power plant in Bihar during a politically sensitive election period.
In light of these contentious allegations, Ramesh demanded the establishment of a Joint Parliamentary Committee (JPC) probe into the mishandling of funds and corporate governance surrounding the Adani Group. This call for investigation echoes Congress’s long-standing “Hum Adani Ke Hain Kaun” (HAHK) campaign, which has sought accountability from the outset.
Ramesh urged that as a preliminary measure, the PAC must readily investigate the circumstances leading to LIC’s investments directed toward the Adani Group, as such inquest firmly lies within Parliament’s jurisdiction.
As of now, the Adani Group and the Union government have yet to respond to these serious allegations, leaving the political landscape tense as accusations of corporate malfeasance and government complicity circulate.
