Washington Post Exposes Modi Government's ₹32,370 Crore Bailout of Adani: A Case of Crony Capitalism
Washington Post has raised serious questions about the Narendra Modi government's financial dealings with the Adani Group—one of India's most politically connected conglomerates. The report alleges that the government directed public institutions to inject over Rs.32,370 crore ($3.9 billion) into Adani companies, in what appears to be a government-sponsored bailout.
The Alleged Bailout
According to the report, following market turmoil and ongoing fraud and bribery investigations in the US involving Adani-linked entities, the Modi government allegedly intervened to stabilize the group's plummeting share prices.
Government-owned institutions like the Life Insurance Corporation of India (LIC) and other government-controlled financial agencies were reportedly instructed to make massive investments in Adani companies, a move internally described as a way to "show confidence."
However, LIC had already suffered significant losses due to its previous investments in Adani shares—losses indirectly borne by millions of Indian policyholders. The report argues that the forced reinvestment of public funds into a politically connected corporation poses significant threats to governance and ethics.
Indian officials directed billions from the state life insurance agency to Gautam Adani’s businesses, internal documents show.
— The Washington Post (@washingtonpost) October 25, 2025
Adani, facing U.S. bribery and fraud charges, denies government favoritism. https://t.co/jm9guPzG30
Crony Capitalism in Action
This episode aligns with a larger pattern of crony capitalism that critics have long accused the Modi administration of fostering—a system where select businesspeople benefit disproportionately from state policies.
From airport privatizations to coal and energy contracts, Adani's rapid rise has often paralleled Modi's political journey. Both hail from Gujarat, and the Adani Group's fortunes have dramatically increased during Modi's decade in power.
The alleged bailout reinforces the perception that the government's economic policies primarily serve private allies, rather than the public good. Public Institutions Under Pressure
The report also highlights how India's public sector institutions have been compromised and are being used as a weapon to protect politically connected corporate interests.
If the government did indeed instruct LIC and others to prop up Adani's shares, it signifies:
Misuse of taxpayers' money,
Violation of fiduciary duty, and
Erosion of institutional independence.
Such practices can undermine confidence in India's financial system, as ordinary citizens' savings are used to cover the risks of politically connected billionaires.
Lack of Transparency and Accountability
Despite the seriousness of the allegations, there has been no official clarification from the government or LIC on the matter.
The opacity surrounding these financial decisions—no public record of instructions, no parliamentary scrutiny, and no independent oversight—raises serious concerns about governance, transparency, and the rule of law.
The Modi government's silence on these issues further deepens public suspicion of collusion and government control.
Political and Ethical Consequences
If the Washington Post's findings are accurate, the implications extend far beyond mere financial misconduct. It would be a case of systemic corruption—where public funds are used to protect private cronies.
This episode exposes the hollowness of the Modi government's claims of "zero tolerance for corruption" and "clean governance," while also demonstrating how political loyalty is rewarded with financial support from the public exchequer.
