# Supreme Court quashes Rs 425-crore customs penalty after finding AI-hallucinated case laws > Source: > Published: 2026-09-02 16:00:34+00:00 Supreme Court quashes Rs 425-crore customs penalty after finding AI-hallucinated case laws SC found that some of the cases were non-existent or carried fake citations, while others that did exist did not lay down the legal propositions attributed to them — an apparent “hallucination of AI.”