Supreme Court overturns Rs 425 crore customs penalty over AI-generated fake citations

The Supreme Court has overturned a penalty of Rs 425,27,99,100 imposed on a diamond exporter after determining that the customs official relied on non-existent judgments and fabricated legal citations, apparently generated by artificial intelligence. Justices Dipankar Datta and Sheel Nagu allowed Vijay Ghanshyam Gadiya’s appeal and remanded the case for a fresh decision. The penalty and the allegation On October 8, 2025, the Additional Commissioner of Customs, Surat,