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Fraud

Bombay High Court Quashes Attachment Order Against Small Store Owner for Aadhaar Misuse

Strategic Insights

— 2 min read

The Bombay High Court has ordered the quashing of an attachment order issued against a 51-year-old small provision store owner in Mumbai. The court found that the attachment was based on transactions carried out by the owner's impersonator, a company that had used his Aadhaar card details. The court expressed distress at the failure of various authorities, including the Unique Identification Authority of India (UIDAI), to take swift action against the fraudsters despite being informed five years ago. The HC directed the Income Tax Authorities to consider deactivating the owner's old PAN number and issuing a new one, while also directing the GST authorities to delete the owner's Aadhaar and PAN numbers from their portal.

Key Takeaways:

  • The Bombay High Court quashed an attachment order issued against a small provision store owner in Mumbai for transactions carried out by his impersonator, a company that had used his Aadhaar card details.
  • The court expressed distress at the failure of various authorities, including the Unique Identification Authority of India (UIDAI), to take swift action against the fraudsters despite being informed five years ago.
  • The HC directed the Income Tax Authorities to consider deactivating the owner's old PAN number and issuing a new one, while also directing the GST authorities to delete the owner's Aadhaar and PAN numbers from their portal.
  • The court imposed costs of Rs 10,000 each on five authorities, including UIDAI, chief commissioner Gujarat state GST; chief commissioner IT, Mumbai; Union Bank of India; and State Tax Commissioner, Gujarat; for "dereliction of duty" and not initiating any criminal proceedings.
  • The court opined that shortcomings in the implementation of laws are the reason the frauds are perpetuated, and hence swift proactive action would be an effective deterrent.
  • The HC directed the Gujarat State Tax department not to initiate any proceedings against the owner for transactions of Metro International Trading Company, the impersonator.
  • The court also directed the Gujarat Police to take the owner's complaint to its logical conclusion and arrest the culprits.

Statistics:

  • Rs 75,000: the amount of the legal notice received by the owner in 2019 for unpaid rent in Rajkot.
  • Rs 14 lakh: the amount of the legal notice received by the owner in 2020 for an alleged dishonour of a cheque issued by the company.
  • 5 years: the duration for which the authorities failed to take swift action against the fraudsters.
  • Rs 10,000: the cost imposed on each of the five authorities for "dereliction of duty" and not initiating any criminal proceedings.

Sources:

  • Times of India
  • UIDAI
  • Chief Commissioner, Gujarat State GST
  • Chief Commissioner, Income Tax, Mumbai
  • Union Bank of India
  • State Tax Commissioner, Gujarat
  • Gujarat Police

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