Taxmen probe rich Indians for having foreign policies without approval

Foreign Exchange Management Act (Fema) is triggered when life insurance is bought from a foreign company without RBI approval

Several wealthy Indians have either purchased or have become nominees in foreign life insurance policies without the approval of the Reserve Bank of India, The Economic Times reported Thursday.

Tax officials are now asking these rich Indians to expalin why their names have figured in these insurance policies that run into millions of dollars.

The report, citing two people familiar with the development, said summons have been issued under section 131 of the Income Tax Act, which allows tax authorities to conduct enquiries.

One tax official said the enquiries are based on specific inputs. The assesses have