Forged GST Notices and Aadhaar Card, Fictitious Petitioners: Delhi HC Exposes Organized GST Scam, Reminds Advocates to Verify Documents before Filing Petition

In a sensational turn of events, the Delhi High Court has unearthed a massive fraud involving forged GST ( Goods and Services Tax ) show cause notices, fake Aadhaar cards, and fictitious petitioners, exposing the huge GST scam. The bench reminded the legal professionals/advocates to verify the GST documents before filing the petition.

JusticePrathiba M. Singh and Justice Rajneesh Kumar Gupta, while recalling earlier favorable orders, directed the registration of a First Information Report (FIR) and called for a full-scale investigation by the Directorate General of GST Intelligence (DGGI) and Delhi Police.

The writ petitions filed by M/s S.R. Enterprises, M/s Trix India Sales Corporation, M/s Royal Enterprises, and M/s Compact Enterprises had initially succeeded in securing relief against retrospective GST registration cancellations.

The petitioners claimed that the show cause notices (SCNs) served on them were vague and without sufficient grounds. On that basis, the Court had earlier set aside cancellation orders, drawing from precedent such as Riddhi Siddhi Enterprises v. CGST.

However, suspicions were raised when the GST Department, during a review, informed the Court that the SCNs presented in court might have been fabricated. When the petitions were revisited, further inquiry by Delhi Police revealed startling findings none of the petitioners were traceable, mobile numbers were inactive, and addresses were either fake or occupied by unrelated individuals.

Even the Aadhaar cards furnished in court were found to be forged. The Unique Identification Authority of India (UIDAI) confirmed discrepancies, including mismatched photographs. When one individual, Mr. Sahib Alam, was eventually traced and produced in court, he admitted that his Aadhaar and PAN cards were taken under the pretext of employment by an unknown individual. The court-verified Aadhaar card submitted in his name bore a completely different photograph.

Further, a bank account linked to M/s Compact Enterprises showed suspicious credits totaling over ₹19 crore in just four months. Another individual, Mr. Aman, allegedly a domestic help, was found to be associated with a firm that had ₹50 crore in financial transactions, clearly suggesting a front for larger illegal operations.

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The Oath Commissioner who attested the affidavits in these cases admitted she could not recall whether the deponents actually appeared before her, raising further doubts about the authenticity of affidavits submitted with the petitions.

Realizing the magnitude of the fraud, the high court observed that it appeared to be a coordinated and well-planned conspiracy to manipulate judicial processes, evade taxes, and possibly launder money. It noted that the use of fictitious identities, forged SCNs, and fake documents indicated a serious offense requiring immediate criminal prosecution.

The Court directed the Registrar General to lodge a complaint against all fictitious petitioners under multiple provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 and the Bharatiya Nyaya Sanhita, 2023, including Sections 215, 227, 228, 229, 233, and 336(1), among others. The DGGI was tasked with filing a complaint with the Crime Branch, and Delhi Police was ordered to register an FIR and initiate a full-scale criminal investigation.

The Court sent out a stern reminder to advocates to confirm the legitimacy of the papers filed with GST petitions, particularly SCNs and Aadhaar cards. It added that “Let the present order be communicated to the Law Secretary, Government of National Capital Territory of Delhi as also to the Secretary, Ministry of Law & Justice, Union of India for considering whether taking of photographs ought to be insisted upon when affidavits are attested by the Oath Commissioner and Notaries, so as to ensure physical presence of deponents.”

The writ petitions were formally dismissed, and earlier orders recalling GST cancellations were revoked. The non-bailable warrants issued against some of the found-individuals who claimed that their Aadhaar was forged, were discharged only after they agreed to cooperate with the ongoing investigation.

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