The Congress party has intensified its criticism of the Modi government, alleging a grave misuse of Life Insurance Corporation (LIC) funds intended for 30 crore policyholders. In a recent statement, Congress officials accused the government of systematically channeling LIC resources to benefit the Adani Group. They have urged the Public Accounts Committee (PAC) of Parliament to initiate a thorough investigation into these alarming claims.
Congress general secretary for communications, Jairam Ramesh, asserted that recent media reports have uncovered extensive misuse of LIC resources, dubbing it a part of the ‘Modani joint venture.’ Ramesh stated that internal documents indicate attempts by government officials to push through major investments from LIC, amounting to ₹33,000 crore in Adani Group companies, with the aim of instilling confidence in the beleaguered conglomerate.
“This investment strategy sought to encourage wider participation from additional investors,” Ramesh elaborated, raising questions about the motivation behind involvement from the Ministry of Finance and NITI Aayog. He accused both institutions of acting under undue pressure to assist a private firm that has come under financial scrutiny.
“This reflects a classic case of ‘mobile phone banking,’ with crucial decisions being dictated by powerful corporate interests,” Ramesh questioned, further emphasizing concerns over transparency.
Ramesh pointed to a staggering ₹7,850 crore loss that LIC experienced in merely four hours of trading on September 21, 2024, after allegations against Gautam Adani and associates surfaced in the United States. He criticized the government’s reluctance to respond appropriately to these legal challenges, asserting that this lack of accountability only adds to suspicions surrounding the administration’s ties with Adani.
Furthermore, Ramesh alleged that Adani faced serious accusations involving a ₹2,000 crore bribery plot aiming to secure lucrative solar power contracts, summarizing the gravity of the situation as the ‘Modani MegaScam.’ He emphasized that this scandal goes beyond just LIC’s investments, suggesting a wider network of corruption and mismanagement.
Ramesh’s allegations specifically include:
- Misuse of central investigative agencies such as the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and Income Tax Department to pressure companies into selling assets to Adani.
- Manipulative privatization of vital infrastructure projects, including airports and ports, skewed in favor of Adani’s conglomerate.
- Utilization of diplomatic channels to obtain lucrative contracts abroad for the Adani Group.
- Over-invoicing coal imports through associates, an action that allegedly raised electricity prices in Gujarat.
- Securing inflated pre-election power supply contracts across several states.
- Granting land at minimal prices for a power plant in Bihar facing elections.
The Congress has consistently demanded a Joint Parliamentary Committee (JPC) investigation since the initiation of their “Hum Adani Ke Hain Kaun” (HAHK) campaign three years ago. Ramesh articulated the urgency for accountability, stating, “We need a comprehensive inquiry to elucidate how LIC was compelled to invest in ventures that primarily benefit one corporation.”
The PAC inquiry is a crucial first step in exposing potential malpractice within the government’s dealings with the Adani Group. This ongoing controversy highlights broader concerns regarding financial governance and the integrity of public institutions in India. As the political battle unfolds, observers await responses from both the Adani Group and the Union government regarding these serious allegations.
