Quick Summary
In a labyrinthine investigation, the Income Tax department has unearthed a complex network of transactions amounting to over Rs 25,000 crore, implicating more than 60 intermediary firms and hundreds of bank accounts in suspected Benami deals within the insurance industry. The probe, which delves int
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FAQ :
The Income Tax department has uncovered suspected Benami transactions amounting to over Rs 25,000 crore, involving extra payments made to insurance agents through intermediary firms.
The investigation is focused on intermediary entities that allegedly facilitated unauthorised payments to agents, rather than the insurance companies themselves.
Funds were allegedly routed through multiple small intermediary firms to obscure the money trail and make it difficult for investigators to trace the origins of the excess payments.
Notices under the Benami Transactions (Prohibition) Amendment Act, 2016 have been issued to the agents involved, instructing them to provide details of their transactions.
Proving Benami transactions can be challenging due to the burden of proof on law enforcement and the potential for factual and legal defences by the parties involved.
No regulatory action has been taken against any insurance companies thus far.
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