LIC Slams Washington Post Report As 'False And Baseless,' Denies External Influence On Investments

Life Insurance Corporation of India has issued a rebuttal denying a recent report by The Washington Post that alleged its investment decisions, particularly concerning the Adani Group, are influenced by external factors or were guided by a roadmap drafted by Indian officials.

In its denial, LIC categorically stated that the allegations leveled by the American daily, which had suggested that Indian officials drafted a proposal in May to steer roughly $3.9 billion in investments from the state-owned insurer to Adani Group companies, are "false, baseless, and far from truth."

The insurer went on to deny the core of the report, affirming that "No such document or plan as alleged in the article has ever been prepared by LIC, which creates a roadmap for infusing funds by LIC into Adani group of companies."

In a move to reaffirm the integrity and autonomy of its internal governance, LIC clarified the rigorous process behind its investment decisions. The company stated that "Investment decisions are taken by LIC independently as per Board approved policies after detailed due diligence."

The insurer refuted any external interference, stating unequivocally that the "Department of Financial Services or any other body does not have any role in such decisions." This statement underscores LIC's position that its multi-billion dollar investment portfolio is managed solely through internal expertise and established corporate policy.

LIC further assured its of policyholders and stakeholders that it has "ensured highest standards of due diligence" and that all its investment decisions have been undertaken in full compliance with extant policies, statutory provisions in the Acts, and regulatory guidelines. The focus, it maintained, remains on acting "in the best interest of all its stakeholders."

Concluding its statement, LIC suggested that the Washington Post article was intended to cause deliberate harm, asserting that the purported statements "appear to have been made with the intentions to prejudice the well settled decision-making process of LIC and also to tarnish the reputation and image of LIC and the strong financial sector foundations in India."