Why Modi govt is amending Aadhaar Act and what it means for your privacy

Critics allege that with the new Bill, the Centre is looking to circumvent the Supreme Court order passed earlier this year.

The Narendra Modi government has introduced a Bill in parliament that propose amendments to various laws that underpin the Aadhaar ecosystem, in a move that comes after a Supreme Court verdict earlier this year curtailed the sprawling nature of India’s biometric authentication programme.

The Aadhaar And Other Laws (Amendment) Bill 2018, which was passed by the cabinet two weeks ago and introduced by information technology minister Ravi Shankar Prasad in the Lok Sabha on Wednesday, contains a host of amendments that have to be passed to comply with various aspects of the apex court’s judgements.

These include: provisions to help make the biometric scheme voluntary, clauses that will allow the Unique Identification Authority of India (UIDAI) to more effectively police its ecosystem and options to cancel Aadhaar numbers when one turns 18.

The most controversial change, however, are two proposed amendments to the Telegraph Act and the Prevention of Money Laundering Act. The amendments will allow banks and telecom operators to continue using voluntary Aadhaar authentication as a means of linking Aadhaar numbers to bank accounts and mobile SIM cards.

Critics and privacy advocates say that these two amendments specifically are in contravention of the Supreme Court judgement.

ALSO READ: Aadhaar Act amended to bar private entities from storing individuals' data

“The Supreme Court…. explicitly prohibited use of Aadhaar by private parties by declaring Section 57 of the Aadhaar Act, 2016, as unconstitutional. This section provided grounds for Aadhaar-based authentication by private entities as well,” a statement by Rethink Aadhaar, a non-partisan campaign that is critical of the UID project, said on Tuesday.

“The present bill proposes amendments to the Aadhaar Act, Telegraph Act and the Prevention of Money Laundering Act which will circumvent the SC judgment, and allow the continued use of Aadhaar-based e-KYC authentication by private entities for mobile and banking services, respectively,” it added.

When Prasad introduced the Bill in the Lok Sabha on Tuesday, it drew sharp criticism from opposition party members.

Congress MP Shashi Tharoor said that it would enable “private organisations to get Aadhaar details which is in violation of the Supreme Court judgement” and that it failed to protect the right to privacy.

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Over 210.8 million PAN cards linked with Aadhaar till now, reveals data

That judgement came on Wednesday and the court has upheld the linking of the two databases.

Over 210.8 million permanent account numbers (PANs) have been linked with Aadhaar till now, the latest data revealed as the Supreme Court upheld the validity of the linkage between the two databases Wednesday.

According to official figures accessed by PTI, a total of 21,08,16,676 PANs issued by the Income Tax Department have been linked with Aadhaar till Monday.

The total operational or issued PANs are over 410.2 million (41,02,66,969) according to the same timeline, the data said.

"The deadline for the PAN-Aadhaar linking has already been extended by the CBDT to March 31 next year, according to an order issued on June 30 this year," a senior official said.

According to the latest data, out of the over 410.2 million PANs issued, an overwhelming number of more than 400 million PANs are held by individuals.

ALSO READ: SC declares Aadhaar constitutionally valid, strikes down some provisions

The rest are in the name of companies and other categories of taxpayers, the official said, adding the figure reflects that about 50 per cent of the PANs have been linked with Aadhaar till now.

The deadline to link the two databases has been extended five times in the past in view of the apex court order to keep it open till a five-judge constitution bench delivers its judgment on petitions challenging the validity of the biometric scheme and the enabling law.

That judgement came on Wednesday and the court has upheld the linking of the two databases.

The government, sometime back, had made quoting of Aadhaar mandatory for filing income tax returns (ITRs) as well as obtaining a new PAN.

Section 139 AA (2) of the Income Tax Act says that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate his Aadhaar number to the tax authorities.

While Aadhaar is issued by the Unique Identification Authority of India (UIDAI) to a resident of India, PAN is a 10-digit alphanumeric number allotted by the IT Department to a person, firm or entity.

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SC declares Aadhaar constitutionally valid, strikes down some provisions

There are three sets of judgments being pronounced on the issue today.

Aadhaar Verdict : The Supreme Court Wednesday declared the Centre's flagship Aadhaar scheme as constitutionally valid but struck down some of its provisions including its linking with bank accounts, mobile phones and school admissions.

A five-judge constitution bench headed by Chief Justice Dipak Misra held that while Aadhaar would remain mandatory for filing of IT returns and allotment of Permanent Account Number (PAN), it would not be mandatory to link Aadhaar to bank accounts and telecom service providers cannot seek its linking of Aadhaar for mobile connections.

It would also not be mandatory for school admissions, as also for the examinations conducted by the Central Board of Secondary Examination, National Eligibility cum Entrance Test for medical entrance and the University Grants Commission.

The bench also struck down the national security exception under the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act.

It said Aadhaar is meant to help the benefits reach the marginalised sections of society and takes into account the dignity of people not only from personal but also community point of view.

The top court said Aadhaar is serving much bigger public interest. Aadhaar means unique and it is better to be unique than being best.

There are three sets of judgements being pronounced. The first of the three verdicts was pronounced by Justice A K Sikri who wrote the judgement for himself, CJI and Justice A M Khanwilkar.

ALSO READ: Aadhaar not mandatory for bank account, mobile connection: Key takeaways

Justice Chandrachud and Justice A Bhushan, who are part of the bench, have written their individual opinions.

Justice Sikri struck down Section 57 of Aadhaar Act permitting private entities to avail Aadhaar data and ruled that Aadhaar authentication data cannot be stored for more than six months.

It directed the government not to give Aadhaar to illegal immigrants.

The apex court upheld passing of Aadhaar Bill as Money Bill by the Lok Sabha. The Congress party and its leader Jairam Ramesh had challenged the passage of the bill in the House.

It said there is nothing in the Aadhaar Act that violates right to privacy of an individual...Read More

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Aadhaar not mandatory for bank account, mobile connection: Key takeaways

The apex court also struck down Section 57 of Aadhaar Act permitting private entities to avail Aadhaar data.

Aadhar Verdict : The Supreme Court on Wednesday declared government's Aadhaar scheme as Constitutionally valid and also struck down Section 57 of Aadhaar Act permitting private entities to avail Aadhaar data. "Robust data protection regime has to be brought in place as early as possible," Justice Sikri said while reading out the majority judgement.

The court said that the Aadhaar authentication data cannot be stored for more than six months.

The apex court's five-judge Constitution bench said Aadhaar means unique and it is better to be unique than being best. The first of the three judgements was pronounced by Justice A K Sikri. Justice Sikri pronounced the judgement for himself, Chief Justice Dipak Misra and Justice A M Khanwilkar.

ALSO READ: Aadhaar verdict LIVE updates: SC upholds constitutional validity of Aadhaar

Here are the key takeaways:

1. Individuals and corporates cannot collect Aadhaar data

2. Government not to give Aadhaar to illegal immigrants

3. Aadhaar need not be made compulsory for school admissions

4. Linking Aadhaar to telecom services unconstitutional

5. No person can be denied govt benefits only due to absence of Aadhaar

6. No need to link bank accounts, mobile numbers to Aadhaar

7. Aadhaar card is mandatory for PAN linking, Income Tax return

8. Aadhaar can be passed as Money Bill

9. Nothing in Aadhaar Act that violates right to privacy of individual

10. No child can be denied benefits of any schemes on not being able to bring their Aadhaar number

11. CBSE, NEET, UGC cannot make Aadhaar mandatory, also not compulsory for school admissions

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