NRI Faces PAN Card Fraud – INR 2.84 Cr GST Notice Shock!
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NRI Faces PAN Card Fraud – INR 2.84 Cr GST Notice Shock!
A shocking case of identity theft has surfaced after an NRI received a GST notice of INR 2.84 crore based on an alleged INR 13.8 crore business income accrued between 2019 and 2022 — income he claims he never earned.
Who: A 48-year-old NRI from Santacruz, working in Dubai, is at the center of a shocking financial fraud.
What Happened : He was slapped with a GST tax notice of INR 2.84 crore, citing an alleged income of INR 13.8 crore between 2019 and 2022. A forged PAN card was reportedly used to open a current account at a nationalised bank in Wadala. The account was operated under the business name “Cultural Traders.” The victim’s daughter discovered this after receiving persistent notices from the Income Tax Department and filed a police complaint on April 17, 2025. Key Revelations: According to the complaint, two photos and different signatures were used in transactions linked to the victim’s PAN card. The fraud came to light only after the family consulted a Chartered Accountant, who investigated the case and alerted tax authorities. Despite approaching the Income Tax Department in September 2024, the family received no assistance.
How: His PAN card was allegedly forged and misused to open a current account under the name “Cultural Traders.” The individual had no knowledge of the business or the tax liabilities incurred in his name.
A case of forgery has been registered at Vakola Police Station. The complaint notes the presence of two different photos and signatures, indicating clear identity fraud.
Systemic Loopholes & Failures
Systemic Failures Exposed: RBI’s KYC norms require strict checks including photo, ID, and signature verification — all seemingly bypassed. The fraudulent account was opened using a forged PAN, which should’ve triggered red flags. RBI mandates stringent KYC norms, including photo, signature, and ID checks, which seem to have been flouted. Mismatch in photos and signatures was not detected at account opening.
Zero PAN Activity Alerts : No PAN Activity Alerts: Citizens currently receive no alerts when their PAN is used to open bank accounts or file tax returns. There is no mechanism to notify citizens when their PAN is used to:
- Open bank accounts
- File income tax returns
- Link to business transactions
Return Filing Oversight : Form 26AS, AIS, and TIS reports did not raise red flags. No cross-verification with Aadhaar-PAN linkage or biometrics was done. despite being informed of the fraud in September, authorities offered no support. Form 26AS, AIS, and TIS reports were not scrutinized — either by the taxpayer or the consultant. The mismatch could have been caught earlier during filing.
Tax Department Gaps : The IT and GST departments failed to:
- Cross-verify PAN-Aadhaar linkage
- Check TDS/TCS inconsistencies
- Validate against biometric data
- Even after the family approached the Income Tax Department in September, no help was extended.
Legal Action Initiated: A forgery FIR has been filed at Vakola Police Station against unknown individuals. Authorities are investigating the company and account details of “Cultural Traders.”
Legal Provisions Invoked
Income Tax Act
Section 139A – PAN requirement
Section 277 – False statement in verification
Section 285BA – Obligation to furnish statement of financial transactions
Information Technology Act
Section 66C – Identity theft
Section 72A – Breach of confidentiality and privacy
Indian Penal Code (IPC)
Section 465 – Forgery
Section 468 – Forgery for cheating
Section 420 – Cheating and dishonestly inducing delivery of property
Section 471 – Using forged document as genuine
Key Takeaway: This case highlights critical lapses in fraud detection systems across banking and tax authorities. With growing PAN misuse, there’s an urgent need for
- PAN usage alerts for individuals
- Biometric verification at account opening
- Centralised PAN-Aadhaar monitoring
- Prompt support from tax departments when fraud is reported
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