Delhi High Court’s Decision on Aadhaar Authentication
The Delhi High Court has mandated that all Goods and Services Tax (GST) registrations across India must include biometric Aadhaar authentication. This directive was issued in the case of Neha v. Union of India & Ors by a bench comprising Justices Anil Kshetarpal and Shail Jain.
Reasons Behind the Court’s Directive
The interim order arises from petitions highlighting fraudulent GST registrations, which exploit stolen or compromised PAN and Aadhaar details. These registrations have been used to defraud unsuspecting citizens. In response, the court has instructed authorities nationwide to enforce Aadhaar-based biometric verification before granting GST registration.
Details of the Case
One of the petitions was filed by Neha, who discovered that her personal details were used to obtain two fraudulent GST registrations. Consequently, ₹4.46 crore was siphoned from her account at Punjab National Bank. Despite lodging complaints with GST authorities in March 2026, no action was taken, prompting her to seek judicial intervention.
Government’s Stance and Court’s Observation
The court noted the widespread fraudulent activities within the GST regime, highlighting a statement from a Union Finance Ministry official in the Rajya Sabha. The statement revealed the detection of 2,800 fraudulent registrations in the 2023-24 period, causing a ₹15,085 crore tax evasion. While biometric authentication was suggested as a remedy, its implementation remains incomplete.
The court emphasized that the lack of full implementation has resulted in continued tax evasion and innocent citizens being harassed. The GST authorities acknowledged that biometric verification is currently applied selectively, based on a system identifying cases as ‘risky’.
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Implementation and Future Steps
Insisting on comprehensive application, the court has ordered that biometric-based Aadhaar verification be conducted for all GST registrations, not just flagged cases. The authorities have been urged to handle the matter with due seriousness.
Legal Representation
Representing Neha were advocates Manoj Kumar, Ankit Singh, Vaibhav Bhardwaj, Chanderpal, Nikhil Pramod, Animesh Gaur, and Satya Shruti. The respondents were represented by a team of advocates, including Sumit K Batra, Priyanka Jindal, and others. Senior Advocate Tarun Gulati served as an amicus curiae.
