‘Loot Investment For Cronies’: Congress Party's LIC Jibe At Centre After Hindenburg Report

Congress party chief Mallikarjun Kharge pointed out that LIC shares lost Rs 22,442 crore in just two days as he hit out at the Modi government over the issue.

File Photo of Congress President Mallikarjun Kharge ( Image Source :PTI )

New Delhi: Congress President Mallikarjun Kharge on Sunday targeted the Narendra Modi-led government and raised concerns about the Life Insurance Corporation (LIC) of India's exposure to the Adani group as shares of Adani plummeted following a report published by US investment research firm Hindenburg against the group.

In a fresh swipe against the Centre, the party chief said the country's largest life insurer continues to invest into Gautam Adani's flagship unit even after LIC shares lost Rs 22,442 crore in just two days due to exposure in Adani Group.

"LIC is “Life Insurance Corporation” of India with 29 Cr Policyholders! Modi Govt changes it’s name to LOOT INVESTMENT for CRONIES!,” Kharge tweeted.

After the Hindenburg exposé —

1️⃣ LIC shares have lost ₹22,442 Cr in just 2 days

2️⃣ LIC is plowing more money into Adani’s flagship unit

LIC is “Life Insurance Corporation” of India with 29 Cr Policyholders!

Modi Govt changes it’s name to
LOOT INVESTMENT for CRONIES!

— Mallikarjun Kharge (@kharge) January 29, 2023

Meanwhile, Congress general secretary Randeep Surjewala on Saturday questioned the "silence" of the Union Finance Minister and probe agencies after LIC and SBI "lost over Rs 78,000 crore" in market capitalisation of their shares due to exposure in Adani Group.

#SBI & other Banks exposure in Adani Group is ₹81,200 CR.

Add, #LIC ‘s invest value in Adani is ₹77,000 CR & post #Hindenburg report, it has lost ₹23,500 CR.

Anywhere else, PM would be asked to explain. FM would be sacked. A full investigation would have been ordered.

— Randeep Singh Surjewala (@rssurjewala) January 27, 2023

"LIC is public money! Post Hindenburg Report, the value of LIC investment in Adani Group shares have fallen from Rs77,000 Crore to Rs53,000 crore -- loss of Rs 23,500 crore,” Surjewala claimed in a series of Tweet.

"Also, LIC shares have lost Rs22,442 Crore. Why is LIC still investing Rs300 crore in Adani Group," Surjewala asked.

Also, the loan exposure of SBI and other banks to Adani Group is Rs81,200 crore, he further added. "The question is, why are SBI Employees Pension Fund and SBI Life still investing Rs225 crore in Adani Group," Surjewala asked.

The Rajya Sabha MP also claimed that between January 24 and 27, the SBI and LIC lost a market cap of Rs78,118 crore in value of their shares alone.

"The loan exposure of SBI and Invest Value decline of LIC in Adani Group is in addition thereto. Yet... RBI, SEBI, ED, SFIO, CBI, and the FM remain on 'mute' mode," he added.

Share prices of Adani Enterprises on Friday tumbled 15 per cent lower to Rs 508.45 apiece in the intraday trade triggering an automatic 105-minute trading halt, reported news agency AFP. This happened after Hindenburg published a report on Adani Group on January 24 saying that Adani Group has engaged in a “brazen stock manipulation and accounting fraud scheme over the course of decades.”

The report by Hindenburg Research, titled 'Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History', questioned the accounting and corporate governance practices of Adani Group, and also raised the issue of heavy debt.

The group led by Asia's richest man criticised the Hindenburg report, stating that it is timed with a "mala fide intention" to damage Adani Enterprises FPO.

"We are shocked that Hindenburg Research has published a report on 24 January 2023 without making any attempt to contact us or verify the factual matrix. The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts," Adani Group said in a media statement.

Jugeshinder Singh, Group CFO Adani, further claimed that the timing of the report is to undermine the group’s reputation and has an intention of "damaging the upcoming Follow-on Public Offering from Adani Enterprises".