The Mundhra scandal was the 1957-58 controversy over LIC's purchase of about Rs 1.26 crore of shares in six companies linked to Haridas Mundhra. Feroze Gandhi'…
A newspaper report alleged a plan to steer LIC funds to Adani firms; LIC denies it, and no finding exists.
The UPSC overturned recommended punishments for the finance secretary and LIC chairman.
A Supreme Court judge examined officials' conduct and reportedly noted Mundhra's party donations.
The finance minister resigned after the Chagla report held him responsible for his secretary's acts.
Open hearings lasted 24 days; the report found the deal helped Mundhra, not the market.
Nehru's son-in-law, a Congress MP, said he held letters between the minister and the finance secretary.
Two questions by Ram Subhag Singh opened the issue; a deputy minister admitted the June purchases.
LIC bought Rs 1,26,86,100 of shares in six Mundhra-linked firms, bypassing its investment committee.
LIC Act merged 245 insurers; Feroze Gandhi saw LIC as Parliament's child.
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