India customs' $44.6M diamond fine collapses after AI-hallucinated court cases found
gaganghotra_ · x · 2026-10-14
India's Surat Customs fined diamond trader Vijay Ghanshyam Gadiya about Rs 425.28 crore ($44.6M) for allegedly declaring natural diamonds as lab-grown, and the Gujarat High Court initially upheld it. But his lawyers checked every cited judgment and found several cases in Customs' court submission simply did not exist — they were AI hallucinations — undermining the entire penalty. A stark example of unverified AI use in legal work.
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