New Delhi, Sep 18 Supreme Court judge Justice Sanjeev Sachdeva on Friday underlined the need for a concerted effort by the government, enforcement agencies, industry and consumers to tackle counterfeiting and smuggling, saying such illicit trade causes economic losses and can also facilitate organised crime and terrorism.
He was speaking at the 12th edition of MASCADE 2026, organised by FICCI CASCADE under the theme "ONE WORLD, ONE FIGHT: Eliminating Counterfeiting and Smuggling Through Collective Action" and said counterfeit and smuggled goods undermine legitimate businesses, deplete government tax revenues and lead to loss of jobs.
“These activities undermine legitimate businesses... If there is anything which hits the economy, depletes tax revenues, it causes a setback to the country; immense amounts of economic losses take place. You lose jobs. Legitimate manufacturing units over here create jobs. If you have smuggled products, jobs are created somewhere else in the world. We are sufferers,” he said.
He said the issue was no longer limited to fake luxury goods, as counterfeiting had spread to pharmaceuticals, agricultural products, pesticides and seeds, posing risks beyond economic losses.
Justice Sachdeva said smuggling could also lead to funds being routed through hawala channels and subsequently used to finance organised crime and terrorism.
“We have to make sure that we are contributing to the economy, ensuring that illegitimate businesses do not progress. This also has an offshoot. Smuggling promotes a lot of funds which are routed through hawala, and which are then used to fund organised crime and terrorism. Now it's not just counterfeiting or smuggling or a consumer losing out; it's the entire country, entire economy, which is at a setback,” the top court judge said.
Referring to the challenges posed by technology, he said digital platforms had made it easier for counterfeiters to create fake websites and product listings, while smaller consignments made enforcement more difficult.
He highlighted the use of "dynamic injunctions" by courts to block not only identified pirated websites but also their mirror and deceptively similar sites.
“Over the past decade, the total value of illicit trade across India has approximately risen from one lakh crore to about eight lakh crore. About 1.6 million jobs have been lost because work has gone abroad, but the interception rate has been only about 3 per cent,” he said.
Justice Sachdeva also referred to changes in the regulatory framework for e-commerce platforms, saying platforms that curate products, promote listings, authenticate sellers or manage warehouses may not be treated as merely passive intermediaries.
He urged consumers to exercise caution while purchasing products online, including checking seller profiles, treating unusually steep discounts as a red flag and avoiding products without return or exchange policies. He also stressed the importance of obtaining tax invoices.
Justice Sachdeva said tackling illicit trade required an "all-concerted effort" involving modern technology, enforcement and public awareness.
Former Chief Justice of Jammu and Kashmir High Court Justice Manmohan Sarin, Additional Solicitor General S V Raju and FICCI CASCADE Chairman Anil Rajput were also present at the event.
FICCI CASCADE Chairman Anil Rajput said the fight against illicit trade was not merely an economic or revenue issue but a "security imperative" and a "governance imperative" linked to peace and stability.
Rajput called for collective action through a UNITE framework centred on Unified Intelligence, Networked Enforcement, Innovation, Trusted Trade and Empowered Citizens, saying no country or institution could tackle global illicit networks alone.
