Mohanty Hits Back at Washington Post Allegations
Former Life Insurance Corporation of India (LIC) Chairperson Siddhartha Mohanty has dismissed a report by The Washington Post that claimed India’s state-run insurer made investment decisions under government influence, particularly regarding the Adani Group. Calling the report “misleading and baseless,” Mohanty said that LIC’s investment operations are fully independent and based on strict internal policies.
In a detailed post on X, Mohanty wrote, “From my experience as ex-Chairman and CEO & MD, I affirm that the government never interferes directly or indirectly in any investment decision of LIC. Therefore, I call upon The Washington Post to withdraw and remove the said unverified content from all digital and print platforms.”
Mohanty, who served as LIC’s Chairperson between April 2023 and June 2025, described the report as an attempt to “create a misleading narrative” around one of India’s most trusted financial institutions.
Washington Post’s Claims and the Controversy
The American newspaper had alleged that the LIC’s investment strategy, especially concerning the Adani Group, was guided by “external factors” or a “roadmap” drafted by Indian officials. According to The Washington Post, a proposal worth nearly 3.9 billion dollars was allegedly fast-tracked earlier this year to direct investments from LIC into an Adani Group firm.
The report suggested that these decisions might have been part of a coordinated effort influenced by political or bureaucratic channels — a claim that immediately drew criticism from both LIC and financial experts.
LIC Denies Allegations, Calls Report Baseless
Responding strongly, LIC issued an official statement rejecting the allegations. The company clarified that all its investment decisions are made independently, in line with its board-approved policies, and are subject to detailed due diligence.
“No such document or plan as alleged in the article has ever been prepared by LIC which creates a roadmap for infusing funds into Adani Group companies,” the insurer said. “All investments are made with integrity, transparency, and complete adherence to statutory provisions and regulatory guidelines.”
LIC also clarified that neither the Department of Financial Services nor any other government body has any role in its investment choices. “LIC has ensured the highest standards of due diligence and compliance with existing policies, Acts, and regulatory guidelines, always keeping the interest of policyholders and stakeholders at the forefront,” the statement added.
Protecting LIC’s Reputation
In its rebuttal, LIC also accused The Washington Post of attempting to damage its credibility and the stability of India’s financial sector. “The purported statements in the article appear to have been made with the intention to prejudice the well-established decision-making process of LIC and to tarnish the reputation of LIC and India’s strong financial institutions,” the company said.
The insurer emphasized its long-standing reputation for ethical investment and transparency. As one of the world’s largest life insurance companies, LIC manages billions in assets and plays a key role in India’s capital markets.
Siddhartha Mohanty’s Perspective
Mohanty’s comments added significant weight to LIC’s defense. With decades of experience in the insurance and finance sectors, his statement directly challenged the credibility of The Washington Post’s reporting.
He stated that during his tenure, every investment underwent a detailed review process. “Every proposal goes through multiple layers of scrutiny and evaluation before approval. The idea that an external roadmap could dictate LIC’s investments is entirely unfounded,” Mohanty remarked privately to close associates, according to sources familiar with the matter.
He also underlined that LIC’s portfolio diversification strategy ensures that no single corporate entity or group dominates its investments, making the idea of favoritism or pressure from external sources “illogical and inconsistent with the organization’s principles.”
Broader Context and Market Reaction
The Washington Post report had caused a brief stir among global investors, particularly because of renewed scrutiny around the Adani Group following past allegations of market manipulation. However, LIC’s and Mohanty’s quick rebuttals helped calm investor sentiment.
Analysts noted that LIC has historically been one of the most regulated financial entities in India. “LIC’s investment processes are among the most structured in the industry, with multiple oversight mechanisms in place,” said market expert Rajesh Mahadevan. “The claim of external interference lacks substance, especially given the company’s governance framework.”
Following the clarification, LIC shares remained stable on Monday’s early trading session, indicating that the market had largely dismissed the allegations.
The Washington Post Under Fire
This is not the first time an international publication has faced backlash in India over reports concerning major Indian conglomerates. Financial experts and policymakers have often criticized such stories for lacking on-ground context and relying on unnamed sources.
Calls are now growing for The Washington Post to issue a clarification or correction. Several financial commentators have accused the paper of “sensationalism” and “agenda-driven reporting” that undermines investor confidence in emerging markets like India.
Looking Ahead
The controversy has once again sparked discussions about foreign media portrayals of Indian economic policies and corporate governance. For LIC, which remains India’s largest institutional investor, the episode has become a reminder of how global perception can influence domestic credibility.
In his closing remarks, Siddhartha Mohanty emphasized that LIC would continue its mission with “unwavering commitment to policyholders and transparency.” His strong defense, coupled with the company’s official statement, appears to have restored confidence among stakeholders.
While the Washington Post is yet to respond to the rebuttals, the message from LIC and its former chief is clear — India’s largest insurer is determined to protect its reputation from what it calls “baseless and misleading claims.”