Top court sets aside ₹425-crore fine on Gujarat diamantaire, cautions on AI use
The court ordered the case to be reconsidered by an officer of the same rank after finding the original order relied on non-existent case laws.
On Wednesday, India's Supreme Court overturned a ₹425 crore fine imposed on a Gujarat diamond trader for fraudulently declaring natural diamonds as lab-grown. The bench of justices Dipankar Datta and Sheel Nagu noted that while AI can be a useful tool, it should not make critical decisions alone. The court emphasized that "Artificial Intelligence (AI) may well serve as training wheels but entrusting it with the pilot's seat would be both imprudent and dangerous."
The court remanded the case back to the additional commissioner of customs, Surat, requiring the decision to be made by an officer of equal rank. The trader, Vijay Ghanshyam Gadiya, had initially been penalized under Section 114 of the Customs Act for misdeclaration.
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