Supreme Court sets aside ₹425-crore customs penalty over AI-generated fake case laws

The case concerns a challenge to a ₹425-crore customs penalty imposed on the appellant for misdeclaring diamonds, which the Supreme Court set aside because the customs authority relied on AI-generated fake case laws.

Appellant: Vijay Ghanshyam Gadiya; Respondents: Union of India & Anr.; Bench: Justice Dipankar Datta and Justice Sheel Nagu.

• Leave granted.
• The Court verified and found that the respondent relied on non-existent or fake case laws and AI hallucinations.
• The impugned order of the High Court and the original penalty order are set aside.
• Proceedings against the appellant are revived for a fresh decision by an officer of the same rank, other than the one who passed the original order.
• The civil appeal is allowed.
• Pending applications are disposed of.
• The Court left it to the appointing authority to initiate action against the author of the original order as warranted by law.

Written from the document by AI, and checked against it. The original below is authoritative.

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