The Bombay High Court has strongly rebuked the UIDAI, Union Bank of India, the Income Tax Department, and Gujarat GST authorities for allowing a shocking GST identity theft fraud to go unchecked for over five years.
A division bench of Justices M.S. Sonak and Jitendra Jain observed that all statutory, regulatory, and enforcement authorities had remained “motionless for five years” despite being repeatedly informed about the fraud perpetrated using Lad’s Aadhaar and PAN cards.
Vilas Lad, who runs a small provisional store in Mumbai, began receiving legal notices in 2019 from Gujarat-based individuals and entities claiming he had defaulted on rent payments and issued bounced cheques totaling over ₹13 lakh. These allegations were tied to a business named M/s Metro International Trading Company — a firm Lad said he had never heard of.
Subsequent investigation revealed that an unidentified person had used forged documents bearing Lad’s Aadhaar and PAN numbers — but with someone else’s photograph — to open a bank account, obtain GST registration, and engage in financial transactions. Lad had never visited Gujarat or entered any rental or business agreements there.
Despite lodging complaints with the Dadar Police Station in Mumbai, Navrangpura Police in Ahmedabad, Union Bank (which had absorbed Andhra Bank where the account was opened), UIDAI, Income Tax authorities, and GST officials, Lad’s pleas were met with bureaucratic silence and no criminal proceedings were initiated for years.
The High Court said “This is indeed a very sad state of affairs where a citizen… was made to run from pillar to post for seeking redressal of his grievance… The least the authorities could have done was to file an FIR… The fraud played on all these Respondents have been taken very lightly.”
The Court was particularly critical of UIDAI, for failing to act promptly on complaints despite being the custodian of Aadhaar data. Union Bank, for not verifying the Aadhaar photo and failing to follow RBI’s KYC norms under the 2016 Master Directions, which mandate biometric authentication or e-KYC. Income Tax and GST authorities, for continuing to maintain the fake PAN and GST registration and not lodging any FIR. Gujarat GST officials, for issuing a property attachment order against Lad despite clear signs of impersonation and fraud.
The Court noted that even as late as 2025, the fraudulent GST number linked to Lad’s identity remained active on the government portal.
Both UIDAI and Union Bank admitted in court that they had failed to act on the fraud and only promised to file criminal complaints during the ongoing hearings. The Court found this unacceptable, stating “We have our own doubts as to what would be achieved if criminal proceedings are set in motion after a period of five years… The highest authorities of each of the Respondents should introspect, investigate, and fix accountability.”
The Court acknowledged the personal and financial toll the fraud had taken on Lad, “A citizen who toils hard to make both ends meet cannot be made to defend multiple proceedings due to an impersonator’s acts and institutional negligence.”
Lad had to engage legal counsel, respond to criminal complaints in Ahmedabad, and file a writ petition in the High Court to reclaim his identity and prevent further damage.
The Court has not only taken a dim view of the authorities’ failure but has directed all respondents to file action-taken reports and ensure compliance with statutory obligations.
Case Details
Case Title: Vilas Prabhakar Lad Versus UIDAI
Case No.: Writ Petition No.3586 Of 2021
Date: 21 July 2025
Counsel For Petitioner: Dr. Uday Warunjikar A/W Mr. Jenish D. Jain
Counsel For Respondent: Mr. Jitendra B. Mishra A/W Mr. Ashutosh Mishra & Mr. Rupesh Dubey
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