The stocks of the Adani Group witnessed a sharp fall on Thursday which resulted in a loss of Rs 12000 crore for the government insurance company Life Insurance Corporation (LIC). LIC has investments in seven companies of the Adani Group. The development follows after the US Department of Justice and the US Securities and Exchange Commission made bribery allegations against directors of the Adani Green-Gautam Adani and Sagar Adani. The Adani group refuted all the allegations terming it as ‘baseless’ and said in a statement that all legal recourse will be taken.

According to September 2024 shareholding the insurance company has invested in seven companies of the Adani group which are- Adani Enterprises Adani Ports Adani Green Energy Adani Energy solutions Adani total gas ACCand ambuja cements. Due to sharp decline in Adani’s stock LIC has lost Rs 11 728 crore in its shareholding. 

The stocks of Adani Ports have caused a massive loss to LIC. Following the plummet in Adani Ports stock LIC has lost Rs 5009.88 crore. Additionally the state-run insurance company incurred a loss of Rs 3012.91 crore due to the decline in Adani Enterprises stocks. The shares of Ambuja Cement also resulted in a loss of Rs 1207.83 crore for LIC.

The insurance company lost Rs 807 crore in Adani Total Rs 716.45 crore in Adani Energy Solutions Rs 592.05 crore in Adani Green Energy and Rs 381.66 crore in ACC following a dip in the group’s stocks.

US prosecutors had charged Gautam Adani and others in an alleged Solar Energy contract bribery case. A five-count criminal indictment has been unsealed in the United States District Court for the Eastern District of New York charging prominent Indian executives including Chairman of the Adani Group Gautam Adani by linking them to an alleged bribery and fraud scheme.

According to the U.S. Attorneys Office Eastern District of New York A five-count criminal indictment was unsealed in federal court charging Gautam Adani Sagar R. Adani and Vneet S. Jaain with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements.