The Congress party launched a strong offensive against the Modi government on Saturday, accusing it of systematically misusing the savings of 30 crore Life Insurance Corporation (LIC) policyholders to benefit the Adani Group. The party demands that Parliament’s Public Accounts Committee (PAC) conduct a detailed investigation into how LIC was allegedly compelled to make substantial investments in the conglomerate.
Congress general secretary (communications) Jairam Ramesh highlighted fresh media reports suggesting that vital resources were diverted to benefit powerful corporate interests. He referred to the situation as the ‘Modani joint venture,’ indicating a collusion between Modi and Adani.
Ramesh stated, “Internal documents reveal that officials prepared and presented a proposal to invest approximately ₹33,000 crore of LIC funds in various Adani Group companies by May 2025.” The aim, he said, was to present an illusion of confidence in the Adani Group to entice other investors.
The Congress leader raised questions about the roles of the Ministry of Finance and NITI Aayog. He alleged that these entities operated under clandestine pressure to support a financially troubled private entity. “Isn’t this a clear-cut case of ‘mobile phone banking,’ where decisions are influenced by corporate motives?” questioned Ramesh.
The allegations also include alarming financial losses for LIC, with Ramesh citing a massive loss of ₹7,850 crore recorded in just four hours of trading on September 21, 2024. This occurred after Gautam Adani and seven of his associates faced indictment in the United States.
“The government continues to protect Adani,” charged Ramesh, as he criticized the administration for delaying compliance with a US SEC summons related to the group. Allegations surfaced that Adani had engaged in a ₹2,000 crore bribery scheme to secure exorbitant solar power contracts.
Ramesh categorized the situation as a “Modani MegaScam” that extends beyond mere LIC investments. The alleged scam reportedly encompasses various aspects:
- Exploitation of central agencies like the ED, CBI, and Income Tax Department to coerce private firms into selling their assets to Adani Group.
- Manipulation of privatisation processes for airports, ports, and other crucial infrastructure to favor Adani.
- Utilisation of diplomatic channels to secure lucrative contracts abroad for the group.
- Over-invoicing of coal imports through associates, inflating electricity prices in Gujarat.
- Bidding for pre-election power supply contracts at excessive prices in states including Madhya Pradesh, Rajasthan, and Maharashtra.
- Granting land at minimal rates for a power plant in the electorally significant state of Bihar.
These severe disclosures, according to Ramesh, necessitate a Joint Parliamentary Committee (JPC) probe. The Congress party has persistently raised this issue since its “Hum Adani Ke Hain Kaun” (HAHK) campaign began three years ago.
“As an initial step, the PAC must investigate the circumstances that led to LIC being urged to invest in the Adani Group,” Ramesh remarked. He emphasized that such an inquiry falls squarely within the legislative body’s jurisdiction.
As of now, there has been no comment from the Adani Group or the Union government regarding these allegations.
