New Delhi: A major investigation by The Washington Post has exposed an alleged nexus between Indian Prime Minister Narendra Modi and business tycoon Gautam Adani, accusing the government of fostering corruption by diverting public funds to prop up the struggling conglomerate.
According to the report, the Indian government transferred billions of dollars from public funds to companies within the Adani Group, a move seen as a bailout for the corporation which was facing severe debt and financial difficulties.
The Post revealed that in May, Indian authorities moved approximately $3.9 billion (about 1.08 trillion Indian Rupees) from the Life Insurance Corporation of India (LIC), a state-owned insurer, into Adani Group companies.
This move has been described as a clear misuse of public money. The report highlighted one specific transaction where an Adani ports subsidiary needed to issue $585 million in bonds to refinance its debt. The entire bond issue was purchased by the state-run LIC.
This alleged rescue package came just months after the U.S. Department of Justice (DOJ) had accused the Adani Group of a multi-billion dollar fraud scheme and bribing Indian officials. These allegations had already made several major US and European banks hesitant to lend further money to the group.
Analysts argue this situation undermines the Modi government’s “Shining India” model. Critics claim the economic benefits are concentrated among a few specific capitalists, notably Adani and Ambani, while the general Indian population is left grappling with unemployment, debt, and severe financial pressure.
