The Bombay High Court (HC) recently issued an ex-parte interim order targeting fraud services providing PAN cards on behalf of UTIITSL, which is a government-owned company. It ruled in favour of UTIITSL, saying that such fraud services are a danger to national security.
UTIITSL approached the high court seeking a restraining order against businesses and individuals infringing its copyright and engaging in deceptive practices. The court ruled in favour of UTIITSL, stating that the continued operation of fraudulent websites could cause irreversible harm and risk sensitive information.
UTIITSL accused the defendants of violating its copyright and using its trademarks without authorization. The defendants allegedly offered services exclusive to UTIITSL, collecting residents' private information unlawfully.
Judge Bharati Dangre, on January 12, expressed concern over the misuse of the licence to issue PAN cards. She emphasised that such misuse could harm national interests, given the mandatory linking of PAN and Aadhar cards.
Judge Dangre highlighted the importance of the PAN system, stating that it significantly impacts governance, taxation, and financial integrity. She described it as the cornerstone of a strong financial economy.
UTIITSL has been authorised to handle PANs and related services since 2002. The Income Tax Department of India has given the authority for PAN service and issuing Aadhar, voter, and driving IDs to UTIITSL. It will continue to work until March 2024.
PAN services play a crucial role in fostering fiscal discipline and ensuring a transparent economic framework. They streamline tax recovery and payment processes and serve as unique identifiers for individuals and entities.
The next hearing in the case is scheduled for February 20.
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