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India's top court scraps $45m customs penalty over AI-hallucinated cases

By Freny Patel ( September 4, 2026, 06:01 GMT | Insight) -- India's Supreme Court overturned a $45 million customs penalty over artificial intelligence-hallucinated legal material, reinforcing its “zero tolerance” approach as it develops rules governing AI use in courts.India's Supreme Court has overturned a 4.25 billion rupee ($45 milllion) customs penalty after finding that the official who imposed it relied on nonexistent cases, fake citations and legal propositions apparently hallucinated by artificial intelligence....

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