The ‘Adani’ Effect: LIC Loses Nearly 12,000 Crores

The Life Insurance Corporation of India (LIC) has suffered a loss of nearly 12,000 crores in a single trading session today (21 November). The LIC witnessed its holding in seven Adani Stocks drop by a mammoth amount in a day.

The shares of Gautam Adani-led conglomerate plummeted by 20% soon after US prosecutors charged him and his associates in a bribery case involving $250 which is nearly equal to 2000 crores of Indian rupees.

 LIC, as per the shareholding pattern of September 2024, had stakes in seven of the Adani companies which are Adani Enterprises, Adani Ports, Adani Green Energy, Adani Energy Solutions, Adani Total Gas, ACC and Ambuja Cement. The insurance giant saw a decline of 11,728 crores in the value of its holding in these Adani companies.

The largest decline in the value of LIC’s holding is in Adani Ports, which fell by ₹5,009.88 crores. This was followed by ₹3,012.91 crore losses in Adani Enterprises. Again, LIC’s stake in Ambuja Cement saw a drop in value by ₹1,207.83 crore.

LIC’s holding in Adani Total Gas suffered a decline of ₹807.48 crore, while in Adani Energy Solutions, it dropped by ₹716.45 crore, in Adani Green Energy by ₹592.05 crore, and in ACC by ₹381.66 crore.

Bribery Charges & Rahul Gandhi’s Questions:

Adani, along with seven co-defendants, including his nephew Sagar Adani, is accused of paying $250 million in bribes to Indian government officials to secure contracts for a solar power project expected to yield $2 billion in profits over 20 years. Prosecutors said the bribes facilitated the development of what would become India’s largest solar power plant.

Leader of the Opposition, Lok Sabha  Rahul Gandhi escalated his attack on the Narendra Modi government, accusing Prime Minister Modi of shielding industrialist Gautam Adani from corruption investigations. Gandhi alleged that Adani, who has been indicted in the United States for financial crimes, continues to roam free in India due to the Prime Minister's protection.

Gandhi further linked Adani’s influence to the functioning of the ruling Bharatiya Janata Party (BJP), alleging that Adani is a significant financier of the party. Gandhi claimed that Adani’s control extends to critical sectors like airports, seaports, and even defence industries, describing it as a “hijack of the nation.”