🚨 PAN Misuse Nightmare: A Citizen’s Struggle Against Cyber Fraud and Bureaucratic Hurdles in India

The digital age, while offering unprecedented convenience, has opened new avenues for sophisticated criminal activity, most notably Permanent Account Number (PAN) misuse. The ordeal of Shri Yogi M. P. Singh, a resident of Mirzapur, Uttar Pradesh, serves as a stark example of the severe consequences and the arduous bureaucratic battle an average citizen faces when their identity is compromised. This case, documented under Grievance Registration Number: GOVUP/E/2025/0024633, highlights critical systemic gaps in law enforcement and cooperation between the police and the Income Tax Department in tackling cyber financial fraud.

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🕵️ The Genesis of the Complaint: Identity Theft and Fraudulent Transactions

Shri Yogi M. P. Singh’s struggle began when he discovered his PAN was being fraudulently used for high-value financial transactions that had absolutely no connection to him. His initial response was to register an First Information Report (FIR No. 291/2023) on November 11, 2023, under Section 420 IPC (Cheating) and Sections 66C and 66D of the IT Act (Identity Theft and Cheating by Personation using Computer Resources) against unknown persons at Police Station Kotwali Katra, Mirzapur.

The gravity of the situation became evident through the Taxpayer Information Summary (TIS) for the financial year 2024-25, which contained alarming information linked to his PAN, despite the applicant stating he had never filed an Income Tax Return (ITR).

🚨 Fraudulent Transactions Reflected in TIS (All amounts in INR):

SR. NO.	INFORMATION CATEGORY	PROCESSED BY SYSTEM	ACCEPTED BY TAXPAYER
1	Winnings from lottery or crossword puzzle	613	613
2	Winnings from horse race	733	733
4	Business receipts	10,63,414	10,63,414
5	GST turnover	25,44,342	25,44,342
6	Business expenses	5,70,407	5,70,407
7	Winnings from Online Games	550	550

These entries, especially the significant figures for Business receipts and GST turnover, strongly suggest that criminals were operating a substantial business or financial network using the complainant’s identity. The use of PAN for such activities can lead to severe future tax liabilities and criminal scrutiny for the innocent PAN holder.

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🏛️ The Bureaucratic Blockade: The Need for Departmental Cooperation

The core of Shri Singh’s grievance lies in the inability to get the necessary evidential documents from the Department of Income Tax (ITD) to aid the police investigation. He repeatedly states that the ITD is in possession of crucial records, including details of the bank accounts where the fraudulently transacted money was credited. Specifically, he directs the police to access this information from a named official, Income Tax Officer (ITO) Sonal Singh.

The police investigation, as per the official Current Status remark, simply confirms that the FIR was registered and an inquiry was conducted. The Hindi remark translates to: “The report has been submitted. The referred case was investigated in depth, and a report was received from Police Station Kotwali Katra. Upon receiving the report and reviewing the documents from Inspector Kotwali Katra, it was found that the applicant, Shri Yogi MP Singh... had registered FIR No. 291/2023 on 11.11.2023 under Section 420 IPC and 66C, 66D IT Act vs. Unknown in Police Station Kotwali Katra. The same is approved.”

The case was then marked “Case closed” on March 27, 2025.

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🛑 Dissatisfaction and the Appeal for Acceleration

Shri Singh’s Reason for Dis-satisfaction clearly articulates the failure of the system. He explains that the entire motive of his grievance was to pressure the police into obtaining the crucial documents from the ITD personnel who hold them.

“Most respected Sir, the motive of this grievance was to proceed in the direction to get the documents from those personnel of the Department of income tax who have possession of the documents concerning the misuse of the permanent account number of the applicant.”

His concern is highly prescient: the ITD, instead of cooperating with the police and providing evidence, is allegedly sending the police requests to officials who do not possess the relevant records, effectively denying the information. Meanwhile, the applicant himself is being harassed by the ITD with voluminous emails in the form of notices regarding the very transactions he is fighting to prove are fraudulent.

The lack of inter-departmental synergy—specifically the failure of the local police to successfully coordinate with and compel the ITD to release essential financial records—has crippled the investigation into a serious case of cyber identity and financial fraud.

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⚖️ The Way Forward for Victims of PAN Misuse

Shri Singh’s case is a resounding alarm bell for both the public and governmental agencies. It underscores the critical need for:

1. Streamlined Protocol for Cyber Financial Crime: A defined, mandatory protocol must be established for police and the Income Tax Department (and other financial intelligence units) to swiftly exchange critical financial data in cases of reported identity and PAN misuse.
2. Immediate Flagging of Misused PAN: The ITD must have a mechanism to immediately flag a PAN as ‘Under Investigation for Misuse’ upon receiving a valid police complaint (FIR), thereby temporarily halting the generation of automated notices and demands against the innocent individual.
3. Proactive Police Investigation: The police must use their legal authority to compel the production of documents under the Code of Criminal Procedure (CrPC), particularly when facing resistance from other government departments.

Ultimately, the resolution of this case and the protection of the applicant’s rights hinge on the accelerated investigation he demands and the willingness of high-ranking officials, such as Shri Arvind Mohan (Joint Secretary) in the Chief Minister’s Secretariat, to intervene and enforce proper cooperation between the police and the Income Tax Department. A crime of this magnitude cannot be allowed to be “closed” simply because the investigative arms of the government fail to work together.