The Congress party on Saturday made serious allegations against the Modi government, claiming it misused the funds of 30 crore Life Insurance Corporation (LIC) policyholders to financially benefit the Adani Group. The party urged the Public Accounts Committee (PAC) of Parliament to conduct a comprehensive investigation into how LIC was allegedly coerced to invest significantly in the conglomerate.
In a press conference, Congress General Secretary for Communications, Jairam Ramesh, highlighted new media reports suggesting that the so-called “Modani joint venture” has systematically exploited LIC and the hard-earned savings of millions of Indians.
“According to internal documents, Indian officials drafted a proposal to invest approximately ₹33,000 crore of LIC funds in various Adani Group companies in May 2025,” Ramesh claimed. “The intention was to bolster confidence in the Adani Group, inviting further investor participation,” he added.
Ramesh raised suspicions about the involvement of key government institutions, alleging the Ministry of Finance and the NITI Aayog acted under undue pressure to bail out a conglomerate that has faced recent financial challenges.
“This situation raises questions about whether we are witnessing a classic case of ‘mobile phone banking’ — where corporate interests dictate critical financial decisions,” Ramesh queried.
**LIC’s Significant Losses**
Ramesh revealed that LIC incurred a breathtaking loss of ₹7,850 crore in just four hours of trading on September 21, 2024, shortly after Gautam Adani and seven of his associates faced indictments in the United States.
He accused the government of protecting the Adani Group, alleging that the Modi administration had stalled in responding to summons from the U.S. Securities and Exchange Commission (SEC) regarding the group.
“Adani faces accusations of orchestrating a ₹2,000 crore bribery scheme aimed at securing overpriced solar power contracts,” Ramesh added.
**Accusations of a ‘Modani MegaScam’**
He branded the entire issue a “Modani MegaScam,” claiming that it encompasses more than just the LIC investments. Ramesh outlined several practices allegedly associated with this scam:
- Misuse of central agencies like the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and Income Tax Department to push private firms into selling assets to the Adani Group.
- Manipulated privatisation processes benefiting Adani in airports, ports, and vital infrastructure projects.
- Utilisation of diplomatic channels to secure international contracts for the group.
- Allegations of over-invoicing coal imports through associates, which purportedly led to increased electricity prices in Gujarat.
- Inflated pre-election power supply contracts in Madhya Pradesh, Rajasthan, and Maharashtra.
- Allotment of prime agricultural land for a power plant at merely ₹1 per acre in Bihar during elections.
Ramesh insisted that these serious allegations warrant an investigation by a Joint Parliamentary Committee (JPC), a demand that the Congress has promoted since the initiation of its “Hum Adani Ke Hain Kaun” (HAHK) campaign three years ago.
“The PAC should be the first to investigate how LIC was compelled to invest in the Adani Group. This inquiry is well within the powers of Parliament,” Ramesh concluded. He noted that there was no immediate response from the Adani Group or the Union government regarding these allegations.
