LIC defends investment in ITC, says receives orders from Centre
Life Insurance Corporation of India said that there is no law or policy that stopped it in investing in tobacco companies, while defending its holding in ITC.
June 27, 2017 / 11:42 AM IST
An exterior view of Life Insurance Corporation of India's (LIC) headquarters is seen in Mumbai September 18, 2014. REUTERS/Danish Siddiqui
Insurance behemoth Life Insurance Corporation of India (LIC) said that there is no law or policy that stopped it from investing in tobacco companies, while defending its holding in ITC, reports Livemint.
LIC also said that it is owned by the Government of India and the company receives direction and orders from central government for all its activities.
The company filed an affidavit while responding to a PIL which challenges its investment in tobacco firm. It said that the rationale behind its investment in ITC was based on the company’s governance, track record, performance and liquidity of the stock.
The petitioner in the case were doctors at Tata Memorial Hospital; R Venkataramanan, managing trustee at Tata Trust and Sumitra Pednekar wife of former Maharastra labour and home minister Satish Pednekar who died from throat cancer.
Specified Undertaking of the Unit Trust of India (SUUTI) and five government insurance companies hold 32 percent stake in ITC.