The Indian political landscape witnessed fresh turbulence as the Congress party launched a scathing attack on the Narendra Modi government, accusing it of engaging in what they termed as "mobile phone banking" - a clever play on words suggesting financial favors through phone calls.
The controversy centers around Life Insurance Corporation of India's (LIC) significant investments in companies under the Adani Group umbrella. According to Congress spokesperson Jairam Ramesh, these investments have raised serious questions about the government's influence over public sector financial decisions.
The Heart of the Controversy
Congress leaders have pointed to LIC's substantial exposure to Adani Group companies, suggesting that the government is using the public sector insurer to extend financial support to the business conglomerate. The allegations come at a time when the Adani Group has been expanding aggressively across multiple sectors.
Jairam Ramesh didn't mince words when he stated, "The government is doing phone banking. They are not interested in phone banking for the common people, but phone banking for their friends." This sharp remark underscores the opposition's narrative of preferential treatment to certain business houses.
LIC's Investment Portfolio Under Scanner
While specific investment figures weren't detailed in the initial allegations, the Congress party has demanded transparency regarding LIC's total exposure to Adani Group companies. As India's largest insurance company and a significant institutional investor, LIC's investment decisions carry substantial weight in the market.
The opposition party has raised concerns about whether these investments align with the best interests of policyholders and the general public, given LIC's status as a public sector undertaking.
Political Fallout and Government's Position
The allegations have added fuel to the ongoing political battle between the ruling BJP and opposition parties. The Congress has positioned this as part of a larger pattern of alleged favoritism toward certain industrial groups.
As of now, the government hasn't issued a detailed response to these specific allegations. However, in the past, both the government and regulatory bodies have maintained that LIC's investment decisions are made independently based on professional assessment and regulatory compliance.
This development promises to keep the political temperature high in the coming days, with likely discussions in Parliament and increased scrutiny of public sector investments.
