IL&FS crisis: Did LIC violate Irdai guidelines while increasing its stake?

While the stake of LIC in IL&FS is quite substantial, the insurer cannot claim to be a promoter

Life Insurance Corporation of India (LIC) increased its investment in Infrastructure Leasing and Financial Services Ltd (IL&FS) way beyond the stipulated 15 per cent  without seeking any permission or approval from the Insurance Regulatory and Development Authority (Irdai). In fact, LIC completely ignored Irdai guidelines and gave itself the powers to increase its investment in IL&FS, reveals a reply received under Right to Information (RTI) Act.

Responding to the RTI application filed by Kirtikumar Bhatt, Irdai clearly stated that LIC has not filed any application or sought permission for raising its equity or debt investment in IL&FS. "LIC has not