Fake GST Registrations: Delhi High Court Directs Nationwide Biometric Aadhaar Authentication

The Delhi High Court has directed GST authorities across India not to grant GST registration without biometric-based Aadhaar authentication. The direction was issued on 8 September 2026 by Justices Anil Kshetarpal and Shail Jain in Neha v. Union of India, heard with Vikram Kaushal’s connected petition.

The proceedings concern allegations that persons obtained fraudulent registrations using innocent individuals’ PAN and Aadhaar particulars, exposing them to liabilities. The Court was addressing both revenue losses and harassment of people unconnected with the businesses registered in their names.

The authorities’ written submissions stated that biometric authentication was undertaken only when the system identified an application as risky through data analytics and other parameters.

The Court referred to a parliamentary answer placed before it: 2,800 fraudulent registrations involving detected tax evasion of ₹15,085 crore in 2023–24, and 1,654 registrations involving ₹13,109 crore in 2024–25. These were figures recorded from the material submitted to the Court, not findings of criminal guilt.

Noting that respondents’ counsel had identified no implementation difficulty, the Bench issued the direction “for the time being”. Authorities may file objections identifying practical difficulties.

The Court also expected authorities to examine Senior Advocate Tarun Gulati’s suggested safeguards against identity misuse. It did not make every suggestion compulsory.

Importantly, this is an interim direction in pending proceedings, not a final judgment disposing of the petitions. Consideration was fixed for 22 September 2026. The order does not direct blanket cancellation of existing registrations or decide every person’s liability. Its focus is preventing further fraudulent registrations.

Sources

Neha v. Union of India & Ors., W.P.(C) 12210/2026, with W.P.(C) 6218/2026, Delhi High Court, order dated 8 September 2026, paragraphs 1–10, particularly 3–9. [Court order](https://delhihighcourt.nic.in/app/showFile/1788949577_24ef2c8b2c3745b4_754_122102026.pdf/2026).

General information, not individual legal advice.

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