During a routine tax filing, a family discovered that their PAN card details had been stolen and misused by unidentified criminals to create multiple bogus GST registrations—illuminating the scale and sophistication of financial cyber fraud in India’s burgeoning digital economy.
Tax Filing Uncovers Large-Scale Fraud
A case of extensive identity theft surfaced in the city following a police complaint filed by a woman. She alleged that her husband’s Permanent Account Number (PAN) card had been fraudulently used to generate several fake Goods and Services Tax (GST) registrations, resulting in transactions worth ₹43 crore. The woman explained that the incident only became apparent during their recent income tax filing, when the family’s auditor noticed unusually high-value entries in her husband’s financial records, who is currently working abroad and had consistently filed his taxes without irregularities.
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Investigators Find Signs of Sophisticated Exploitation
The investigation revealed that multiple high-value transactions—amounting to tens of crores—had appeared in the husband’s Annual Information Statement (AIS) and Form 26AS, documents summarizing a taxpayer’s income and tax details. The family, alarmed by the discrepancies, cross-checked the records and discovered that her husband’s PAN details were misused by unknown individuals to generate bogus GST numbers and execute extensive financial dealings, giving the appearance that her husband was responsible for the unauthorized activity.
Family Appeals for Justice Amid Cyber Crime Risks
Stunned by the revelation, the complainant stated neither her husband nor his associates were involved in any of the transactions. According to her police report, unidentified persons had created fake GST accounts using his PAN, laundering large sums of money through these fraudulent entities. The woman requested police help to identify the perpetrators and clear her husband’s tax records of false entries. An official case has been registered, and authorities are investigating how the PAN card data was accessed and misused.
Systemic Loopholes Highlighted by Legal Experts
High Court lawyer Raghavendra Sanjeevarao described the case as classic cyber fraud and white-collar crime, noting that following the money trail is exceptionally challenging—particularly if fake accounts are shut and funds are moved before culprits disappear. He emphasized that tighter GST regulations exist, but fraudsters continue to exploit loopholes by using stolen identities for illicit transactions. Similar criminal backgrounds have surfaced in other recent cases involving GST misuse and identity fraud.