NEW DELHI: The Modi government is reportedly funneling Indian public money to its corrupt ally, the Adani Group, according to a new exposé by The Washington Post. The report unveils how Prime Minister Narendra Modi’s so-called “Shining India” serves only industrial giants like Adani and Ambani, while the public continues to struggle under rising debt, unemployment, and financial stress.
According to The Washington Post, Indian authorities transferred approximately $3.9 billion in investments to Adani companies in May. The funds came from the Life Insurance Corporation (LIC) of India, a major public sector investor.
The report adds that Gautam Adani, whose vast business empire was already under mounting debt pressure, needed to refinance loans and had to issue around $585 million in bonds through one of his port subsidiaries. The entire bond was purchased by a single investor namely LIC, a move that raised serious questions about favoritism and the misuse of public funds.
The newspaper described this as a clear example of Adani’s deep influence within Modi’s administration. By showing apparent “confidence” from a major public institution like LIC, the scheme aimed to encourage other investors to follow suit, according to the report.
It also noted that several U.S. and European banks were hesitant to extend loans to Adani, reflecting growing global concerns over the group’s financial transparency.
Just months earlier, the U.S. Department of Justice had accused Adani of running a multibillion-dollar fraud scheme. Prosecutors alleged that Adani and his associates raised billions based on false statements and paid over $250 million in bribes to Indian officials.
The Washington Post further recalled the 2023 Hindenburg Research report, which accused the Adani Group of stock manipulation and accounting irregularities.
The revelations reinforce criticism that Modi’s economic model benefits only a select few, while ordinary Indians face relentless exploitation. Diverting public resources to the Adani Group, the report concludes, effectively legitimizes corruption at a state level.
