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In a startling case from Uttar Pradesh, authorities have uncovered that a single PAN (Permanent Account Number) card was used across more than 100 property registries, involving multiple stakeholders in each transaction. The scheme is estimated to cover over ₹70 lakh ($85,000) in property dealings, with some registrations linked to fake firms in Lucknow and Varanasi.
Concealed Transactions
The Income Tax Department’s investigation revealed that investors intentionally used one PAN to mask transactions, raising suspicions of tax evasion. The anomalies came to light during an examination of 54,000 registry records from the 2022–23 and 2023–24 financial years.
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Discovery and Investigation
Cross-checking online data from registration offices confirmed the repeated use of the same PAN.
Chartered accountants had previously flagged these irregularities, but many transactions were not recorded in the Income Tax Department’s indexing system.
Local registration officials had imposed minor fines and closed some cases without thorough investigation, allowing the scheme to persist.
Raids and Evidence Collection
A team from the Income Tax Department conducted raids in Gorakhpur, reviewing documentation and interrogating registration office officials. On August 6, the team examined 100 registry documents and found 75 using fake PANs.
Implications for Oversight
Experts warn that such practices not only facilitate tax evasion but also compromise transparency in real estate transactions. According to authorities, the case highlights systemic weaknesses in property registration oversight and underscores the need for stricter auditing of registry data.
Next Steps
The Income Tax Department is conducting a comprehensive investigation and has pledged to pursue legal action against all guilty parties. Officials noted that the probe could uncover additional registries and larger financial implications as the investigation continues.
Expert Insight
Triveni Singh, former IPS officer and financial crime expert, commented:
“When multiple stakeholders use a single PAN, it points to a coordinated effort to evade taxes. Such schemes exploit administrative gaps in registration offices and weaken the integrity of property markets. Comprehensive audits and enforcement are crucial to prevent such frauds from recurring.”
