In a bizarre and distressing case of identity theft, an egg seller in Madhya Pradesh has been served notices for Goods and Services Tax (GST) dues worth Rs 6 crore for a business he never knew existed.
Prince Suman, a resident of Pathariya Nagar in Damoh district, makes a modest living selling eggs from a cart. However, the Income Tax department recently issued him a notice claiming he owes GST dues on a business worth nearly Rs 50 crore, registered under his name in Delhi.
Fraudulent Business Registered in Victim's Name
According to the IT department's notice, a company named "Prince Enterprises" was registered in Delhi in 2022 under Suman's credentials. The entity, purportedly involved in leather, wood, and iron trading, has recorded financial transactions amounting to Rs 49.24 crore.
"I only sell eggs on a cart. I have never been to Delhi, let alone start a company there," said a distraught Suman.
His father, Shri Dhar Suman, also expressed deep concern. "We are a family of ten, struggling to make ends meet. This is a case of fraud, and we urge the government to investigate this matter thoroughly."
Identity Theft Suspected
The family's lawyer has alleged that Suman's personal documents were misused to register the fraudulent company. "Someone has used Prince's identity to establish this business illegally. We have filed complaints with both the police and tax authorities, demanding an immediate probe," he said.
In a notice dated March 20, the I-T department has asked Suman to provide documents such as bills, purchase vouchers, transportation records, and bank statements for the financial year 2022-23. However, given that the company was fraudulently registered, Suman has no knowledge of these transactions.
GST Frauds on the Rise
This case adds to the growing list of major GST frauds uncovered across India. Last year, a massive GST scam worth Rs 718 crore was exposed in Delhi, where fake invoices were used to claim fraudulent tax refunds. The Anti-Corruption Bureau arrested a GST officer, three lawyers, and two transporters for orchestrating the scam using 500 fake companies.
The incident highlights the urgent need for stricter verification processes in business registrations and enhanced security measures to prevent misuse of personal identity documents.
Authorities Urged to Act
With the Suman family reeling under stress, the onus is now on tax authorities and law enforcement agencies to investigate and ensure that innocent citizens are not wrongly penalized for fraudulent activities carried out by unknown perpetrators.
As cases of identity theft-based tax frauds rise, experts suggest that individuals remain vigilant about their personal and financial data to avoid becoming unsuspecting victims of such scams.
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