<h1>16 Insurance Firms Probed for Rs. 1200-2500 Crore Cenvat Credit Fraud Using Fake Invoices from Car Dealers.</h1> The Chennai Zonal Unit of the Directorate General of Central Excise Intelligence is investigating 16 insurance companies for improperly claiming Cenvat Credit worth Rs. 1200-2500 crore using bogus invoices from car dealers. These companies, designated as Preferred Car Insurance Companies by car manufacturers, allegedly paid commissions exceeding regulatory limits. To bypass Insurance Regulatory and Development Authority (IRDA) rules, they instructed car dealers to issue invoices for fictitious services. These invoices are not valid under CENVAT Credit Rules, 2004, and Service Tax Rules, 1994. The fraudulent activities have been corroborated by voluntary statements from employees of the involved parties.