A disturbing identity theft scam has come to light in Uttar Pradesh, where low-income individuals—many of them daily wage earners and small business owners—have received income tax notices running into crores, exposing a widespread misuse of their PAN and Aadhaar credentials in fake business setups. The latest case involves Saurabh Kumar, a marginal farmer from Damodpura village in Mathura’s Aurangabad area, who was left stunned after receiving an Income Tax Department notice of ₹30 crore on March 26, 2025. This is the second such notice served to him in recent years—the first being a ₹14 crore notice in 2022, which he initially dismissed as a clerical error.
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With the help of a friend, Saurabh later discovered that fraudulent GST numbers had been registered using his PAN card, and companies bearing his name had been used to carry out high-value transactions—without his knowledge or consent. Despite the seriousness of the fraud, police officials have confirmed that no formal complaint has yet been filed.
More Victims Emerge
Saurabh’s ordeal is far from isolated. In just the past two weeks, at least three other low-income individuals have reported similar tax shocks:
Karan Kumar, a contractual worker earning ₹15,000 a month, received a ₹34 crore income tax notice. A former employee of a paper company in Noida, he suspects his identity documents were compromised by a contractor. Karan has now filed a written complaint at Chandaus Police Station in Aligarh.
Mohammad Rais, a juice seller operating near the Aligarh Civil Court, was stunned to receive a notice for over ₹7 crore.
Yogesh, a locksmith by trade, also from Aligarh, was handed a ₹11 crore notice for transactions he claims no knowledge of.
These cases underline a deepening crisis where government-issued identification documents of unsuspecting citizens are being hijacked for financial fraud. Many of these victims are digitally illiterate, unaware of the complexities of tax filings or GST registrations, making them prime targets for such exploitation.
Organized Racket Suspected
Cybersecurity experts suggest this is not a random occurrence but part of a well-organized scam involving fraudulent GST registrations and shell companies, often backed by middlemen and insiders who exploit loopholes in digital onboarding and identity verification processes. “There appears to be a systemic failure in vetting during GST and company registrations,” said a digital fraud analyst. “The victims being targeted are often people who don’t even know what a GST number is.”
The use of PAN and Aadhaar for unauthorized business activities not only jeopardizes the victims’ financial integrity but also erodes trust in digital governance.
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Growing Demand for Accountability
With the scam gaining momentum, there’s mounting pressure on both state and central authorities to address the issue swiftly. Experts and civil society members are calling for:
Stricter KYC and verification protocols
Real-time alerts and consent-based verification before registering GST or business entities
Awareness campaigns targeting vulnerable groups
Immediate action to exonerate victims and identify the real culprits
So far, the Income Tax Department has not released an official statement regarding the cluster of notices served to low-income individuals. However, cybercrime units and district officials have indicated that investigations will proceed upon receiving formal complaints. This wave of identity theft and financial fraud in Uttar Pradesh raises urgent concerns about data protection, digital literacy, and institutional accountability—and highlights how the digital divide continues to put the economically vulnerable at serious risk.