New Delhi: A new report says the Indian government helped plan a big money deal worth about ₹3.25 Lakh Crore ($3.9 billion) between the Life Insurance Corporation of India (LIC) and the Adani Group. This deal took place earlier this year to help the Adani Group when it was facing financial trouble.
LIC is a government-owned company that uses the money of millions of people who buy life insurance. The Adani Group is one of India’s largest business groups, working in ports, power, and other industries. Reports say the government encouraged LIC and some public banks to invest large amounts of money in Adani’s companies.
The Adani Group had been under pressure after foreign investigators accused it of wrong business practices and overpricing. Because of this, some of its companies had lost value, and the group needed more money to pay its debts. To help, LIC bought a large number of Adani company bonds, giving the group money to continue its business.
Many people are now asking if it was right for LIC to invest such a big amount in one private company. LIC handles money that belongs to common citizens, and if the Adani companies face losses, LIC could also lose a lot. This makes policyholders, the people who have insurance with LIC, worried about the safety of their savings.
Some critics say this deal shows that the government may be helping a business that is close to those in power. They also say public money should be used carefully and fairly, without giving special treatment to big companies.
Adani Group’s Take:
The Adani Group, however, has said it did nothing wrong and that the investment was a normal business deal. The company said LIC often invests in different companies and that this was one of those usual investments.
Government officials and LIC have not made detailed public statements about the issue yet. But the topic has led to big discussions in India about whether public money should be used to help large private companies, and if such decisions are safe for ordinary people.
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