Washington Post Exposes India’s $3.9B Plan to Back Modi’s Billionaire Friend Gautam Adani

A shocking investigation by The Washington Post has revealed that Indian government officials approved a $3.9 billion plan to direct public money from the Life Insurance Corporation of India (LIC) into companies owned by billionaire Gautam Adani, a close ally of Prime Minister Narendra Modi.

According to the report, the plan was drawn up in May 2025 when Adani’s group was struggling with debt repayments. Documents reviewed by reporters Pranshu Verma and Ravi Nair show that the plan was created by officials from the Ministry of Finance (MoF), Department of Financial Services (DFS), NITI Aayog, and LIC.

The idea was to boost investor confidence in Adani’s companies at a time when foreign lenders were pulling back due to US bribery and fraud cases against the tycoon.

$3.4 Billion in Bonds and $507 Million in Shares

As per The Washington Post, LIC was advised to invest about $3.4 billion in Adani group bonds and $507 million in shares of companies like Adani Green Energy and Ambuja Cements.
Officials argued that Adani’s bonds offered better returns — up to 8.2%, compared to 7.2% on government securities.

The plan was quickly put into action. On May 30, 2025, Adani Ports and Special Economic Zone (APSEZ) announced a ₹5,000 crore ($585 million) bond issue to refinance its debt. Surprisingly, LIC became the sole investor, leading to strong criticism from opposition parties and market analysts.

“This government supports Adani and will not allow any harm to come to it,” said Hemindra Hazari, a corporate finance expert quoted by The Post. He called LIC’s move “abnormal,” warning that taxpayers would ultimately bear the risk if things went wrong.

Finance Ministry and NITI Aayog Involved

The Finance Ministry formally approved the plan after discussions between DFS, NITI Aayog, and LIC.
The goal was to prevent panic in financial markets and keep Adani’s debt-heavy group stable.

Gautam Adani, India’s second-richest man with an estimated $90 billion net worth, was charged in 2024 by the US Department of Justice (DOJ) for allegedly running a large-scale fraud scheme. The US SEC also filed civil fraud charges against him and his nephew Sagar Adani.

However, the Adani Group has denied all accusations, calling them “politically motivated” and claiming the charges relate to individuals, not the company itself.

A Deep Connection Between Adani and Policy

The Washington Post says internal files described Adani as a “visionary entrepreneur” and a key part of India’s growth plans.
Despite scandals, Indian officials viewed his infrastructure and energy projects as vital for national development.

Adani Group faced similar scrutiny in 2023, when Hindenburg Research accused it of accounting fraud and stock manipulation. That report caused billions in losses before the market slowly recovered.

Opposition and Political Fallout

The report also mentioned that Indian officials knew about the potential political risks. Opposition parties, including Congress and CPI(M), have repeatedly accused the Modi government of using LIC’s public funds to favor Adani’s businesses.

In response to The Post, the Adani Group strongly denied any link to government-led investment plans. It said LIC invests across many companies and has earned strong returns from its Adani holdings.
“The claims of political favoritism are false,” the group stated, adding that its success began long before Modi came to power.

Analysts Call It ‘Crony Capitalism’

Experts quoted by The Washington Post said the episode reflects India’s growing problem of crony capitalism, where powerful business groups receive protection from the government.

“Adani operates by a different set of rules,” said Tim Buckley, director of Climate Energy Finance in Australia. “Crony capitalism is alive and kicking.”

The investigation concludes that the Modi government’s decision to guide billions of taxpayer-backed funds toward Adani’s debt-ridden empire shows how deeply state financial institutions are now linked with the business interests of one of India’s most influential men.