Address manipulation in business

Dear client,

In general, using different versions of the same address (full vs partial) by two related businesses operating from the same premises is not illegal by itself, but it can become problematic or even fraudulent depending on the intent and the regulatory context.

Why businesses do this (legitimate possibilities)

Some common, non-fraudulent reasons include:

Clerical or formatting differences (floor/room omitted, landmark missing).

Different registrations done at different times on portals like Udyam.

Separate legal entities sharing common infrastructure (permitted in many professions).

Professional firms (including CA firms) operating independently but from the same office.

In such cases, the address mismatch is usually curable by correction on the portal and carries no criminal intent.

When it raises red flags (possible misuse)

Address manipulation may be used for improper advantages, such as:

Multiple registrations to claim MSME benefits (subsidies, tenders, reservations) that are otherwise not permissible if treated as a single unit.

Bypassing turnover, employee, or ownership thresholds under MSME rules.

Creating the appearance of separate establishments to avoid scrutiny by tax, banking, or regulatory authorities.

Misrepresentation to lenders or clients about scale, independence, or eligibility.

If the firms have common partners, control, or financial interdependence, authorities may treat them as linked or related entities regardless of address formatting.

Specific to Udyam portal

Under MSME/Udyam guidelines:

Registration is PAN-based.

Units with common ownership/control can be clubbed for eligibility checks.

Incorrect or misleading information may lead to:

Cancellation of Udyam registration,

Recovery of wrongly availed benefits,

Penalties under applicable laws.

To know what could be the fraudulent puprose behind this you will have to get in touch with those people and find out. It is difficult to do a guessing work here and mention something which may not be true.