Egg Seller in Madhya Pradesh Receives Rs. 6 Crore GST Notice for Bogus Delhi Company

An egg seller from Madhya Pradesh has received shocking GST notices worth crores due to suspected identity fraud and fake company registrations.
Egg Seller - Madhya Pradesh Receives - GST Notice - Bogus - Company - taxscan

A poor egg seller from Madhya Pradesh has received a shocking GST notice demanding Rs. 6 crore in taxes for a business he says he knows nothing about.

Prince Suman, who sells eggs from a cart in Pathariya Nagar in Damoh district, was issued a notice by the Income Tax Department asking him to explain large financial transactions linked to a company registered in his name in Delhi. The notice dated March 20 claims that a firm called “Prince Enterprises”, registered in 2022, has been involved in trading leather, wood, and iron with a business worth Rs. 49.24 crore.

“I just sell eggs on a cart. I’ve never even been to Delhi, let alone started a company there,” said a shocked Prince Suman in an interview with Times Now. He supports a family of ten and said the notice has caused great worry and confusion.

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His father, Shri Dhar Suman, said the family is a victim of fraud. “We are barely able to make a living. I request the government to investigate this properly,” he said.

The family’s lawyer believes that Prince’s personal documents were misused to create a fake company in his name. “This is a case of identity theft. Someone used his documents without his knowledge. We have contacted both the police and the tax department and asked for a full investigation,” the lawyer explained.

The GST notice asks for detailed records such as bills, purchase slips, transport documents, and bank statements for transactions close to Rs. 50 crore for the year 2022–23, information that Prince Suman, who runs no official business, simply doesn’t have.

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This is not an isolated case. Just days earlier, a juice seller from Uttar Pradesh received a GST notice demanding Rs. 19 crore, allegedly linked to a company registered in his name without his knowledge. In a similar incident, a pani puri vendor from Bihar was also issued a notice for Rs. 7.8 crore in GST dues, even though he had never operated any business beyond his food cart.

These cases have raised serious concerns about identity theft and misuse of PAN and Aadhaar for creating fake companies to carry out large-scale GST fraud.

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