Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016

On March 11, 2016, the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016 was passed in Lok Sabha as a money bill. The bill was sent to Rajya Sabha which had suggested five amendments. Since the bill was a money bill, none of the five suggested amendments were bound to be accepted by Lok Sabha. On 26th March, 2016, the bill entered into the statute book as Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 {henceforth Aadhaar Act) after presidential assent.

Objective

Aadhaar Act provides statutory backing to Aadhaar, through which the government plans for targeted delivery of subsidies and services by assigning unique identity numbers to individuals residing in the country. Since, the Supreme Court has stated that government cannot make Aadhaar compulsory unless a constitution bench disposes of the matter, the enactment has assumed importance. The Aadhaar will help in better targeting of subsidies as leakage through impersonation and duplication of identities can be eliminated.

Salient provisions

• It has been made obligatory for a person to possess Aadhaar to receive various forms of state subsidy and assistance. However, if a person does not have an Aadhaar number, the government will insist to apply for it, and in the meanwhile, provide alternative means of identification.
• The main functions of the UID authority :
  • To specify the demographic and biometric information to be collected during enrolment,
  • Assign Aadhaar numbers to individuals,
  • Authenticate Aadhaar numbers, and
  • specify the usage of Aadhaar numbers for delivery of subsidies and services.
• The UID authority will consist of a chairperson, two part-time members and a chief executive officer.  Persons having experience of at least ten years in matters of technology, governance etc., are chosen as the chairperson and members.
• Any entity private or public can accept Aadhaar number as a proof of
• Aadhaar number cannot be used as a proof of citizenship or domicile.
• Every resident who has resided in India for 182 days in the one year preceding the date of application is entitled to get an Aadhaar number.
• After verification of information given by a person, Aadhaar number will be provided.
• The following will be informed to the individuals at the time of enrolment:
  • The manner in which the information will be used,
  • The nature of recipients to whom the information will be shared,
  • The right to access this information.
• An individual is requested to submit the following details in order to get an Aadhaar number:
  • Biometric information such as photograph, finger print, iris scan.
  • Demographic information such as name, date of birth, address.
  • Any other biometric or demographic information specified by UID.
• The UID authority will authenticate the Aadhaar number with the consent of an individual to a requesting entity who wants to authenticate information of a person. The entity should use the disclosed information only for such purpose for which the individual has consented. The disclosure of a person’s finger print, iris scan and other biological attributes are not permitted.
• The UID authority shall maintain a record of entities requesting verification of a person’s credentials, the time of the request and the response given by the UID authority to such a request. The UID shall respond with a positive, negative or other appropriate response. However, the purpose for which an entity needs verification of credentials will not be maintained.
• Biometric information and other biological attributes will be used only for the enrolment and authentication of Aadhaar. It should not be shared or displayed publicly except for the purposes specified by regulations.
• Two cases when the information of an individual are revealed:
  • In the interest of national security: Directions for revealing information may be issued by a joint secretary in the central government. In such cases, Aadhaar number, biometric information, demographic information and photograph are revealed. Such decisions to reveal the information will be valid for six months and will be reviewed by an Oversight Committee consisting of Cabinet Secretary, Secretaries of Legal Affairs and Electronics and Information Technology.
  • On the order of a court: Aadhaar number, photograph, and demographic information may be revealed by a court’s order.
• If a person does unauthorized access to the centralized database or reveals any information from it then he/she may be punished with imprisonment up to three years and minimum fine of Rs 10 lakh. Similarly, if an entity requesting authentication or an enrolling agency does not comply with rules, they shall be punished with imprisonment up to one year or a fine up to Rs 10,000 or Rs 1 lakh (in case of a company), or with both.
• Except on a complaint made by the UID authority or a person authorized by it, no court shall take cognizance of any offence.
• An estimated expenditure of Rs. 13663.22 crore has been envisaged for the implementation of the scheme up to the financial year 2016-17. The expenditure for this scheme is incurred from the Consolidated Fund of India.

Contentious Provisions

Following are some of the provisions in this act which are considered contentious.

Aadhaar to be used by private agencies

The act allows the private agencies/persons to use Aadhaar as a proof of identity for any purpose (clause 7 ) contradicts the statement of objects and reasons of the act. This provision will encourage airline, telecom, real estate companies among others to require Aadhaar as an identity proof to make use of their services.

Collection of additional personal information

The current enrolment form has some fields asking for mobile number, bank account number etc. Although these fields are termed as optional, the need for collection of such additional details is ambiguous.

Possible misuse of discretionary powers

The UID authority is empowered to specify the demographic information that may be collected. However, demographic information such as race, tribe, language, religion, ethnicity, caste, records of entitlement, income or health of the individual cannot be specified to be collected. Apart from that, the authority is free to additional personal information without the prior approval of the Parliament. Similarly, the bill empowers the UID authority to specify other biological information that may be collected. With this the UID authority may require the collection of sensitive biometric information such as DNA.

Profiling of individuals

The data collected may be used by law enforcement and intelligence agencies to recognize the patterns of behavior. The enforcement agencies access the data to recognize and detect potential illegal activities. There is a possibility of an innocent get identified as a potential threat. The act does not provide for the maximum duration during which the UID authority may store the authentication records. Maintenance of records for a prolonged period of time may also lead to profiling an individual’s behaviour.

Sharing of information

It is contested with the sharing of information collected under Aadhaar, it has violated the right to privacy of an individual. The act allows sharing of information in the interest of national security rather than public safety or public emergency. It empowers the joint secretary level officer to issue directions for revealing information instead of the Home secretary. Presently, the Supreme Court is examining whether right to privacy is a fundamental right or not.

Complaint making power exclusively given to UID authority

It has been provided that except on a complaint made by the UID authority or a person authorized by it, no court shall take cognizance of any offence. A situation may arise wherein the members or employees of the UID authority is involved in a security breach. In such cases, solely giving complaint making power to UID authority is unintelligent.

Controversy of Money Bill status

The Aadhaar bill was introduced in the Lok Sabha as a money bill. The money bills can be introduced only in Lok Sabha and not in the Rajya Sabha. Further, the Rajya Sabha has only powers to make recommendations and cannot make amendments. This has to be done within 14 days from the date of their receipt of the bill. Also money bills cannot be referred to a joint committee of parliament.

Opposition had objected and labeled the move to introduce the bill as a money bill as a tactic employed by the government to bypass the Rajya Sabha in which the government does not enjoy a majority.

On the other hand, government held that the subject matter of the bill falls under Article 110 and hence it qualifies to be a money bill. Finally the speaker labeled the bill as a money bill and it was passed in the Lok Sabha after rejecting the recommendations of the Rajya Sabha.