U.S. newspapers have published shocking reports claiming that Indian Prime Minister Narendra Modi secretly planned to help his business friend Gautam Adani get billions in loans from the state-run Life Insurance Corporation of India (LIC).
According to a Washington Post investigation, Modi’s government allegedly worked on a secret plan to provide money to Adani, whose companies were struggling with debt.
Government and LIC Joint Plan
The report says that in May 2025, India’s central finance ministry, its financial services department, LIC, and the government’s planning body jointly created a strategy to invest $3.9 billion into Adani’s business empire. This move reportedly came after many foreign banks in the U.S. and Europe refused to lend more money due to corruption and fraud allegations.
Documents obtained by the Washington Post show that the plan was executed when Adani Ports issued $585 million in debt bonds for refinancing existing loans. LIC reportedly bought all the bonds as a single investor.
Signal of Confidence, Despite Rising Debt
Another report by the Indian online newspaper The Wire said the plan aimed to show confidence in Adani and attract more investors. However, the Adani group’s debt had risen by 20% in the past year. The group is also facing ongoing investigations by U.S. authorities. The U.S. Department of Justice and the Securities and Exchange Commission have accused Adani and his associates of a multi-billion-dollar bribery and fraud scheme involving false documents and illegal payments of $250 million. Adani has denied these allegations, calling them “baseless.”
LIC has also reportedly denied any wrongdoing or involvement in any secret plan, emphasizing that it follows all legal and regulatory rules in its investments.
Experts Warn of LIC Risk
The Washington Post cited analysts warning that LIC, which safeguards savings of millions of ordinary Indians, could face serious financial risk with such large investments in a single company.
“LIC investing such a huge sum in a private corporation is unusual,” said independent analyst Hemindra Hazari. “If LIC faces losses, no one but the government could bail it out.”
Political Fallout
Opposition leaders have long criticized Modi’s close relationship with Adani, calling it an example of crony capitalism. The Adani group dismissed these claims as a “conspiracy against India.”
Trinamool Congress MP Mahua Moitra criticized the Modi government on X (formerly Twitter), saying: “Modi government keeps funding Gautam Adani & the Indian people have to keep bailing him out.”
Meanwhile, the Adani group told the Washington Post that the government had no role in its decisions, calling claims of political bias “baseless.” The group also said the plan was developed “before Modi’s national leadership.”
The Post also reported that independent journalist Ravi Nair, who co-authored the investigation, is facing a defamation lawsuit from the Adani group over his previous investigative reports.
