• Kharge said LIC will continue to invest more money in Gautam Adani's flagship unit
• Adani shares fall after a report by Hindenburg Research
Congress President Mallikarjun Kharge on Sunday raised concerns about Life Insurance Corporation of India's (LIC) exposure to the Adani Group, as Adani's shares declined following a report by US short seller Hindenburg Research.
The party chief said the country's largest life insurer continues to invest more money in Gautam Adani's flagship unit, while LIC shares lost ₹22,442 crore in just two days due to risk aversion in the Adani group.
"After Hindenburg Expose - LIC shares lose ₹22,442 cr in just 2 days. LIC infuses more money into Adani's flagship unit. LIC the 'lifeline' of India with 29 cr policyholders," Kharge wrote on Twitter. Insurance Corporation!"
After the Hindenburg Exposé
1️⃣ LIC shares lose ₹22,442 crore in just 2 days
2️⃣ LIC is investing more money in Adani's flagship unit
LIC is "Life Insurance Corporation of India" with 29 crore policyholders.
Modi government has changed its name
Loot investing for cronies!
— Mallikarjun Kharge (@Kharge) January 29, 2023
The Congress has also questioned the "silence" of Union Finance Minister Nirmala Sitharaman and investigative agencies after the "loss of over ₹78,000 crore" in market capitalization of LIC and SBI shares due to exposure in the Adani group.
Congress general secretary Randeep Surjewala said LIC and SBI continue to invest in the Adani group even after the Hindenburg research report alleged rigging of share prices and financial misappropriation by the group.
"LIC is public money! After the Hindenburg report, the value of LIC investment in Adani Group shares has fallen from ₹77,000 crore to ₹53,000 crore - a loss of ₹23,500 crore.
"Besides, LIC shares have lost ₹22,442 crore. Why is LIC still investing ₹300 crore in Adani Group," Surjewala asked.
The Congress leader claimed that after the publication of the report, there has been a huge drop of ₹54,618 crore in the market cap of SBI shares.
In addition, SBI and other banks have a credit exposure of ₹81,200 crore to the Adani group, he claimed.
"The question is why SBI Employees Pension Fund and SBI Life are still investing Rs 225 crore in the Adani group," Surjewala asked.
The Rajya Sabha MP also claimed that between January 24 and 27, SBI and LIC alone lost a market cap of ₹78,118 crore in value of their shares.
Surjewala said in a series, "SBI's loan exposure and LIC's investment in Adani group has eroded in value. Yet... RBI, SEBI, ED, SFIO, CBI and Finance Minister are on 'mute' mode." " Tweets.
The Congress leader had earlier said that elsewhere "the prime minister will be asked to explain, the finance minister will be sacked and a full inquiry will be ordered."
LIC is an investor in five Adani companies, with stakes ranging from 1% to 9%, totaling ₹72,268 crore as of January 24 – just before the Hindenburg Report was published.
The Hindenburg Report has raised questions about how the Adani group used entities in offshore tax havens such as Mauritius and the Caribbean islands.
It said major listed Adani companies had "substantial debt", putting the entire group on a "precarious financial footing".
However, the Adani Group has denied the allegations and termed it a campaign to defame the firm ahead of its pursuit of a public issue.
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