Contents
From a tribunal order recalled in early 2025 to Supreme Court judgments in July and September 2026, Indian courts have confronted a growing series of cases in which pleadings, trial court orders, tribunal rulings and even a Rs 425 crore customs penalty relied on judgments that do not exist or on real citations with invented paragraphs. The responses have moved from recall and withdrawal to written High Court policies and a Supreme Court declaration, in Pooja Ramesh Singh v. J&K Bank (2 July 2026), that unverified AI-generated precedents attract zero tolerance, are misconduct when cited by advocates, and make any decision tainted by them a nullity. Most incidents are known only through court orders and press reports, and the sources reviewed contain no measurement of how common the problem is.
Key takeaways
- Two kinds of fabrication recur: cases that do not exist and real citations attached to paragraphs or propositions that do not appear in them; the second is harder to detect.
- The problem has appeared in adjudicators' own orders (an ITAT, trial courts, the NCLT and NCLAT, a customs officer, a GST officer) as well as in lawyers' pleadings.
- Detection is usually by the opposing or affected party, not the court: in Greenopolis, Gummadi, Pooja Ramesh Singh, Gadiya and Faiz Enterprise the problem was raised by litigants or their counsel.
- Early responses were mild or procedural: recall of the ITAT order, withdrawal of the Delhi petition, a request for action against a Bengaluru civil judge, and High Court observations.
- From February 2026 the Supreme Court escalated: a decision based on AI-generated non-existent judgments is misconduct (Gummadi), then "zero tolerance" and nullity (Pooja Ramesh Singh), applied again to a Rs 425 crore penalty (Gadiya).
- Institutional rulebooks followed: Kerala's policy (2025), Gujarat's policy and Punjab and Haryana's letter (April 2026), the Supreme Court's draft regulations (June 2026) with a proposed disclosure duty and a no-defence rule for filers.
- Evidence is thin: the sources are court orders and press reports, there is no official database of incidents, and AI use is often inferred from the pattern of errors rather than admitted. Gujarat's State Tax Officer is a rare case of admission.
Scope and definitions
This entry tracks incidents in which authorities, quotations or legal propositions that cannot be verified appeared in an Indian court or tribunal record and where AI generation was admitted, found or strongly suspected. The Supreme Court uses "hallucinated" for such material in Pooja Ramesh Singh, which describes "fake, non-existent, and hallucinated material" being used as precedent and says it is concerned with the legal consequences, not the technical cause.1 The draft Regulations for Use of Artificial Intelligence in Courts, 2026 define hallucination as plausible-looking outputs that are factually incorrect, fabricated or unsupported, including erroneous legal facts and case law.
Incidents in which judges merely consulted a chatbot, such as the 2023 Punjab and Haryana High Court bail order and the 2024 Tripura and Punjab and Haryana High Court judgments, are treated in a separate entry on that topic; they involved disclosed use of ChatGPT rather than fabricated authority. The overview also leaves out cases where a court relied on a non-existent statute without any suggestion of AI, such as a Delhi family court judgment citing a non-existent section of the Special Marriage Act, and the Bombay High Court's Rs 5 lakh costs on the State in June 2026 for relying on a non-existent Act in a soil-excavation dispute.
Incidents
The following table lists the principal reported incidents in date order. "Response" is the immediate judicial response, not the later regulatory reaction.
| Date | Forum | Matter | What surfaced | Response |
|---|---|---|---|---|
| 30 Dec 2024 | ITAT Bengaluru | Buckeye Trust v. PCIT, ITA 1051/Bang/2024 | An order dismissing a Rs 669 crore tax appeal relied on authorities reported as fabricated or misattributed (two with fabricated names and citations)4 | Order recalled early 2025; Karnataka High Court restrained the authoring member from rehearing (Aug 2025); fresh bench dismissed the appeal on 12 Feb 2026 |
| Nov 2024 (reported Jan-Mar 2025) | City Civil Court, Bengaluru; Karnataka High Court | Samaan Capital v. Mantri Infrastructure | A trial judge's order cited Supreme Court and Delhi High Court judgments for which no records existed; counsel said it looked like AI-generated fictional results7 | Justice R. Devdas (24 Mar 2025) called it "disturbing" and sent the order to the Chief Justice for action; no finding on AI |
| 19 Aug 2025 | Trial court, Andhra Pradesh | Gummadi Usha Rani v. Sure Mallikarjuna Rao | An order rejecting objections to an Advocate Commissioner's report cited four Supreme Court decisions that do not exist3 | Andhra Pradesh High Court found them AI-generated and cautioned but upheld the order; Supreme Court took cognisance on 27 Feb 2026 |
| 25 Sep 2025 | Delhi High Court | Greenopolis Welfare Association v. Narender Singh | Respondents said precedents cited for the petitioner did not exist and quoted passages did not appear56 | Petition dismissed as withdrawn; no recorded sanction |
| Dec 2025 (reported 13 Dec) | Kerala High Court | Blue Star Aluminium & Door House v. Federal Bank | Justice M.A. Abdul Hakhim said some writ petitions were "AI-generated" with no basic material facts and lawyers could not explain them8 | Direction to implead the local SHO in account-freezing petitions; remarks on young lawyers drew an objection from the High Court Advocates' Association |
| Mar 2026 | Bombay High Court; Supreme Court | Heart & Soul Entertainment v. Deepak Bahry | The Bombay High Court said written submissions appeared AI-generated and cited a non-existent judgment; the litigant said he never cited it9 | Supreme Court (Justices Rajesh Bindal and Vijay Bishnoi) expunged the remarks as an indulgence but called the menace "rampant in all courts" |
| 30 Apr 2026 | Delhi High Court (Division Bench) | SNV Aviation (Akasa Air) v. ABS Tour and Travels | Akasa said a district court's decree for Rs 1.08 crore attributed non-existent propositions to Supreme Court judgments10 | Decree stayed on a Rs 20 lakh deposit; bench said the drafting prima facie suggested AI software, to be examined |
| 2 Jul 2026 | Supreme Court | Pooja Ramesh Singh v. J&K Bank | NCLT reasoning relied on six Supreme Court authorities, three non-existent and three with untraceable paragraphs; NCLAT missed it1 | NCLT and NCLAT rulings set aside; zero tolerance; BCI to frame norms |
| 20 Aug 2026 | Gujarat High Court | Faiz Enterprise v. State Tax Officer | A State Tax Officer admitted using AI to draft a GST order citing non-existent or irrelevant judgments11 | Orders quashed; statewide AI instructions recorded; violation warned to be contempt |
| 2 Sep 2026 | Supreme Court | Vijay Ghanshyam Gadiya v. Union of India | A Rs 425.28 crore customs penalty relied on case law that was non-existent or fake-cited, or did not support the stated ratio2 | Penalty and High Court order set aside; fresh decision by another officer; appointing authority may act against the author |
Other episodes were reported with less detail. In February 2026 the Supreme Court was reported to have flagged an "alarming" trend of lawyers using AI to draft petitions after cases in which cited judgments and quotations proved non-existent or inaccurate, and in March 2026 a Ludhiana hosiery trader's PIL on the PM CARES Fund was reported to have been dismissed after he admitted using AI tools to draft it.
Patterns
Who produced the fake material. In the adjudicator incidents, the likely source was the decision-maker's own research. In Pooja Ramesh Singh the bank swore that its counsel had not cited the NCLT's authorities and that they came from the NCLT's own research, according to the bank's affidavit as recorded by the Court.1 In Faiz Enterprise the officer admitted drafting with AI.11 In filer cases, the other side usually discovered the problem.
How it was caught. Opposing counsel (Greenopolis), the affected litigant (Pooja Ramesh Singh, Gummadi, Gadiya, Faiz Enterprise) or a reviewing court (Karnataka, Akasa) raised the issue; the sources reviewed do not say who first noticed the Buckeye Trust errors. The Supreme Court observed in July 2026 that courts and tribunals "implicitly trust lawyers when referring to precedents" and that it would be impractical to have courts verify every cited judgment.1
What was fabricated. Reports describe invented case names with plausible citations, real citations with invented paragraphs, and real cases cited for propositions they do not contain. The Supreme Court's tables in Pooja Ramesh Singh and its findings in Gadiya show all three.12
Attribution to AI. In several incidents the link to AI is inferred. The Greenopolis order says only that precedents "do not even exist", while the attribution to ChatGPT comes from press reports,56 and the Karnataka order does not mention AI.7 In Gummadi the Andhra Pradesh High Court "realized that the judgments are Artificial Intelligence (AI) generated", and in Akasa the Delhi High Court spoke of an "impression" that AI software may have been used.310
Judicial responses
The courts' reactions fall into three stages.
Procedural responses (2025). The ITAT recalled its order and the Karnataka High Court restrained the author-member from rehearing the case; the Delhi High Court allowed the petition to be withdrawn; a Karnataka High Court judge asked the Chief Justice to consider action against a civil judge for citing decisions "never decided by the Apex Court or any other Court".457
Supreme Court escalation (February to September 2026). On 27 February 2026, in Gummadi Usha Rani, a bench of Justices P.S. Narasimha and Alok Aradhe declared that a decision based on non-existent AI-generated judgments "is not an error in the decision making. It would be a misconduct and legal consequence shall follow", barred the trial court from proceeding on the Commissioner's report, appointed Senior Advocate Shyam Divan as amicus and sought responses from the Attorney General, Solicitor General and Bar Council of India.3 On 2 July 2026 the same Bench in Pooja Ramesh Singh set aside the NCLT and NCLAT rulings, held that such a decision is "no decision in the eyes of the law", called unverified citation "a misconduct on the part of an advocate", and directed the Bar Council to constitute a committee and prescribe norms and disciplinary action.1 On 2 September 2026 Justices Dipankar Datta and Sheel Nagu applied it to the customs penalty in Gadiya, saying that AI "may well serve as training wheels but entrusting it with the pilot's seat would be both imprudent and dangerous".2
Rule-making. Kerala issued a policy in July 2025 barring AI from findings and judgments; Gujarat followed in April 2026 with personal liability for signatories, and the Punjab and Haryana High Court told district judges not to use AI tools for judgments or research. After Faiz Enterprise the Gujarat High Court made State tax instructions on verifying AI-assisted material enforceable by contempt.11 On 3 June 2026 the Supreme Court's AI Committee published draft regulations that would require disclosure of AI-assisted filings and bar litigants from using AI as a defence for fabricated material. Each of these has its own entry in this wiki.
Professional regulation
Responsibility for lawyers rests with the Bar Council of India and State Bar Councils. In June 2026 Bar & Bench reported what the BCI told Parliament: advocates who file AI-generated fake citations, fabricated quotations or non-existent judgments "cannot escape professional liability by blaming technology", and must verify all AI-generated legal research.12 The Supreme Court's direction of 2 July 2026 asks the Council to turn this into a guiding principle with disciplinary consequences.1 The Supreme Court Advocates-on-Record Association has proposed, in response to the draft regulations, that advocates certify personal verification of citations in the SLP certificate instead of a general AI-disclosure rule.
The sources reviewed did not show that the BCI had published its norms or that any advocate had been disciplined for AI-fabricated citations by October 2026. The Greenopolis respondents said they would take "appropriate steps", but no outcome is recorded.5
Significance and open questions
The cases show that the risk is not limited to junior lawyers. It reaches judges, tribunal members and revenue officers who decide large sums, and the Supreme Court has said that a single "iota" of fake material can vitiate a decision.1 That standard, and the direction to set decisions aside, shifts costs onto litigants, as the Buckeye Trust assessee and the Essel Infraprojects appellant had to litigate for months to get fresh decisions.
Several questions remain open. The sources reviewed show no official register of incidents, so prevalence cannot be measured, and reports depend on parties spotting errors. The line between sanctionable AI use and an honest error is unsettled: the Karnataka civil judge incident and the Delhi family court case involved non-existent authority without proof of AI. The Supreme Court's draft regulations contemplate officers recording reasons to dispense with verification of AI output in some cases, which sits uneasily with the zero-tolerance line.
The adjudicator incidents also raise a due-process question, as the Buckeye Trust recall illustrates: when a flawed order is withdrawn, who decides the case again, and how the integrity of the process is protected.
Current status
As of 15 October 2026 the Supreme Court's inquiry in Gummadi Usha Rani remained pending, with the IT and Law ministries impleaded and the last recorded listing on 1 September 2026. The Bar Council of India's committee and norms, and the final Regulations for Use of Artificial Intelligence in Courts, had not been published in the sources reviewed. Reported incidents became more frequent through 2026, and this entry should be updated as the Supreme Court and High Courts decide further cases.
Parties
Timeline
- Mar 27, 2023
Punjab and Haryana High Court quotes ChatGPT in a bail order
The first documented Indian judicial order to reproduce a chatbot's answer; not a fabrication case but the start of the debate.
- Aug 22, 2023
Delhi High Court warns of fictional case laws from chatbots
In Christian Louboutin v. Shoe Boutique the court says ChatGPT cannot be the basis of adjudication and may produce fictional case laws.
- Dec 30, 2024
ITAT Bengaluru Buckeye Trust order
The Tribunal's order cites authorities later reported as fabricated or misattributed; it is recalled in early 2025.
- Mar 24, 2025
Karnataka High Court orders action against civil judge
Justice R. Devdas finds that a Bengaluru city civil judge cited two decisions never decided by any court.
- Jul 19, 2025
Kerala High Court issues first judicial AI policy
District judges and staff are barred from using AI for findings, reliefs, orders or judgments.
- Sep 25, 2025
Delhi High Court petition withdrawn over non-existent precedents
In Greenopolis Welfare Association, respondents show that cited precedents and quotations do not exist.
- Dec 5, 2025
Supreme Court declines to regulate AI by order
A bench led by CJI Surya Kant says judges are cautious and invites administrative suggestions.
- Feb 27, 2026
Supreme Court calls AI-generated citations by a trial court misconduct
In Gummadi Usha Rani the Court issues notice to the AG, SG and BCI and appoints an amicus.
- Apr 4, 2026
Gujarat High Court issues AI policy
Gujarat bars AI from adjudication and fixes personal liability for AI-assisted outputs.
- Jun 3, 2026
Supreme Court AI Committee publishes draft regulations
The draft would require disclosure of AI-assisted filings and bar AI as a defence for fabricated material.
- Jul 2, 2026
Pooja Ramesh Singh judgment
The Supreme Court sets aside NCLT and NCLAT rulings, declares zero tolerance and directs the BCI to frame norms.
- Aug 20, 2026
Gujarat High Court enforces AI instructions on tax officers
In Faiz Enterprise a State Tax Officer admits AI-drafted GST order citing non-existent cases; non-compliance is made contempt.
- Sep 2, 2026
Gadiya judgment
The Supreme Court sets aside a Rs 425.28 crore customs penalty tainted by AI hallucination.
Sources
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- [12]
Pacta AI Observatory, “AI-Hallucinated Citations in Indian Courts and Tribunals: Incidents and Responses, 2023-2026,” last updated October 15, 2026, https://aiobservatory.pacta.in/wiki/indian-courts-ai-hallucination-cases.