Aviva India Fined $7.5 Million Due to Fake Invoice Scheme

The India Authority fined British insurer Aviva's local unit $7.5 million. During the investigation, they discovered that this organization used a fake invoice scheme to collect unlawful commissions and claim inaccurate taxes.

Aditya Singh Yadav, the joint tax commissioner, stated that the company avoided paying taxes amounting to about 326 million rupees ($3.8 million). As a result, they must pay the tax owed along with a 100% penalty, bringing the total to 653 million rupees ($7.5 million).

To expand its business, Aviva India allegedly paid around $26 million between 2017 and 2023 to vendors who were said to offer marketing services. However, these vendors were used to give Aviva's agents extra commissions beyond the legal limit, according to Indian tax authorities in a notice on August 3, as reported by Reuters last year.

By using fake invoices and cash payments, Aviva wrongly claimed tax credits and avoided paying $5.2 million in taxes, the authorities claimed.

In 2024, A confidential company document revealed that an Aviva business model was used to pay agents illegal commissions from 2017 to 2023, was implemented internally in 2013, and had been formally approved by senior executives in India.

According to this entity, Aviva India is a joint venture between Aviva Plc., a UK based insurance group, and Dabur Invest Corp., one of India's oldest and most respected business houses.

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