Aadhaar: What happens to firms like Jio, Paytm as SC strikes down sec 57?

Finance minister Arun Jaitley on Wednesday indicated that the Centre would examine whether separate legal backing is needed for Section 57 of the Aadhaar Act, a provision which allows private entities access to the core Aadhaar database.

The Supreme Court on Wednesday struck down Section 57 of the Aadhaar Act, which deals with private entities, and read down a few others, stating that they were unconstitutional.

“If it is backed by law, it is not unconstitutional,” Jaitley said when asked about Supreme Court striking down Section 57, which allows ‘any body corporate or person’ or ‘private entity’ to demand Aadhaar.

He added that the Centre would see if the court’s decision arose from a “procedural concern”.

“So let us first read the judgement. There are two-three prohibited areas. Are they because they are totally prohibited or are they because they need legal backing. So my answer in general, the generic answer will depend on what is the rationale… for instance on these private entities, it needs to be backed by law. That’s my understanding. I still have a detailed reading of the judgement to do,” Jaitley said

Business Standard

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

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.

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

UIDAI extends the deadline to deploy Virtual ID system to July 1

UIDAI has extended by one month to July 1 the deadline for service providers and agencies like banks and telecom companies to fully deploy Virtual ID system and accept these IDs in lieu of Aadhaar number.

The Virtual ID (VID) feature is aimed at giving users the option of not sharing their Aadhaar number at the time of authentication.

UIDAI - which had earlier said it will be compulsory for all agencies that undertake authentication to accept VID from their users from June 1, 2018 - has decided to give one more month after the user agencies said they needed more time to switch to the new system.

"We are ready but the agencies wanted some more time to switch to the VID system. We have, therefore, given one more month till July 1," UIDAI CEO Ajay Bhushan Pandey told PTI.

The extension was given considering the "difficulty and amount of internal work" involved for the agencies including telcos, banks, state governments, among others, he added.

Aadhaar case: SC reserves verdict on pleas challenging verdict; top points

A five-judge constitution bench of the Supreme Court headed by Chief Justice of India (CJI) Dipak Misra on Thursday reserved its judgement on the Aadhaar matter. Several appeals were filed challenging the constitutional validity of Aadhaar. Supreme Court judge Justice D Y Chandrachud, while hearing the petitions challenging the Aadhaar scheme's constitutional validity, on Wednesday recalled a personal experience of how his mother, who was suffering from Alzheimer's disease, had faced difficulty in authentication to get her pension.

Justice Chandrachud is part of the five-judge Constitution Bench, headed by Chief Justice of India Dipak Misra, which is hearing a batch of petitions challenging the constitutional validity of the Aadhaar scheme and its enabling law of 2016.

The hearing will continue on Thursday.

On May 3, the Centre had strongly defended its decision to seed Aadhaar numbers with mobile phones, telling the top court that it could have been hauled up for contempt if the verification of mobile users was not undertaken by it. However, the court had said that the government had misinterpreted its order and used it as a "tool" to make Aadhaar mandatory for mobile users.

PF-Aadhaar seeding portal hacked, EPFO refutes claim: All you need to know

Employees Provident Fund Organisation (EPFO) has apparently had to shut down the portal that it uses to for Aadhaar seeding with provident fund accounts of its subscribers following an alleged data breach where confidential user information was stolen by hackers.

The issue was purportedly raised by EPFO Central Provident Fund Commissioner V P Joy in a letter to Common Service Centre (CSC) Chief Executive Dinesh Tyagi on March 23.

“The web portal has been closed one-and-a-half months ago, immediately after a possible data theft was reported to us during a process of routine security check. There was some problem in the application run by CSC and it is not related to our data centre that maintains the EPF accounts,” Joy told Business Standard on Wednesday.

Speaking to PTI, Tyagi said that while the said application had been designed by the CSC, it was now hosted on EPFO data centres and servers. The EPFO shut down the website on March 22, urging the CSC to secure the confidential data of employees.

The report comes at a time when Aadhaar is embroiled in data breach allegations while also being at the centre of India's privacy debate. The Supreme Court is hearing a clutch of petitions challenging the Aadhaar Act and the use of biometric identifier in various government and non-government services.

Aadhaar data of 134,000 Indians leaked on Andhra govt website; top updates

On reasonable grounds, the benefits that Aadhaar offers to citizens are immense. But the actual costs stem from the possible misuse of Aadhaar data. Despite a robust legislation on data protection by UIDAI, Aadhaar numbers and bank details of over 134,000 beneficiaries on Andhra Pradesh Housing Corporation's website have been leaked. The Andhra Pradesh government’s cyber security researcher Kodali Srinivas has revealed how a state-run agency has disclosed the Aadhaar data, bank accounts information with IFSC codes, caste and religion besides geo-location of 134,000 beneficiaries of housing schemes.

The leaked details have now been taken off the website.

Even after repeated claims by the Unique Identification Authority of India (UIDAI) that Aadhaar data can never be used for surveillance or to track religious and caste information, this new data leak of sensitive information is likely to bring the authenticity of the nodal agency’s regulations on data protection under question. The latest Aadhaar data breach took place just a day after Chief Minister N Chandrababu Naidu inaugurated the Andhra Pradesh Cyber Security Operations Centre (APCSOC).

Aadhaar-welfare schemes linking extended by 3 months; here's how to do it

The government on Wednesday extended by three months to June 30 the deadline for linking of Aadhaar with welfare schemes, where the benefits are funded from the Consolidated Fund of India.

The earlier deadline for the same was March 31, 2018.

The Ministry of Electronics and IT, in an office memorandum issued today, informed about the extension of the stipulated date for the linkage to June 30.

The Central Board of Direct Taxes (CBDT) on Tuesday extended the last date for linking of Aadhaar with Permanent Account Number (PAN) from March 31, 2018, to June 30, 2018.
The order said the deadline for PAN-Aadhaar linking for filing I-T returns is being extended after "consideration of the matter".

It is understood that the latest order by CBDT has come in the backdrop of the Supreme Court, earlier this month, directing extension of the March 31 deadline for linking Aadhaar with various other services.

SC extends Aadhaar linking deadline for all services indefinitely: Updates

The Supreme Court on Tuesday extended the March 31 deadline for linking Aadhaar to various government schemes, as well as mobile phones and bank accounts.

A five-judge Constitution bench comprising Chief Justice Dipak Misra and Justices A K Sikri, A M Khanwilkar, D Y Chandrachud and Ashok Bhushan heard a clutch of pleas seeking a stay on government's decision of mandatory linking of Aadhaar with welfare schemes, as well as essential services like banking and phone.

In its order, the apex court ruled that the deadlines for linking to the Unique Identification number stand extended till it decides on its validity.
Aadhaar will be necessary only for social schemes, said the top court, which is hearing a bunch of petitions that have challenged the validity of the 12-digit number.

Earlier, the Centre had told the Supreme Court that the government could extend the March 31 deadline for linking Aadhaar to various government schemes, as well as mobile phones and bank accounts, if required.

Critics of Aadhaar say they have been harassed, put under surveillance

Researchers and journalists who have identified loopholes in India’s massive national identity card project have said they have been slapped with criminal cases or harassed by government agencies because of their work.

Last month, the Unique Identification Authority of India (UIDAI), the semi-government body responsible for the national identity project, called Aadhaar, or “Basis”, filed a criminal case against the Tribune newspaper for publishing a story that said access to the card’s database could be bought for Rs 500 ($7.82).

Reuters spoke to eight additional researchers, activists and journalists who have complained of being harassed after writing about Aadhaar. They said UIDAI and other government agencies were extremely sensitive to criticism of the Aadhaar programme.

Aadhaar is a biometric identification card that is becoming integral to the digitisation of India’s economy, with over 1.1 billion users and the world’s biggest database.

UIDAI introduces 16-digit 'Virtual ID', limited KYC for Aadhaar holders

As it looks to address concerns regarding privacy of Aadhaar data, the Unique Identification Authority of India (UIDAI) has introduced a concept of ‘Virtual ID’, which is a temporary number that can be generated by users for the purpose of verification and authentication.

The UIDAI has taken a slew of measures to safeguard the privacy of citizens, primarily after reports emerged that Aadhaar data can be accessed by unauthorised means.
The 'Virtual ID', which will be mapped with the Aadhaar number, can be shared with authorities to authenticate identity for availing various services and it will provide users an option of not sharing their Aadhaar number.

The ID will be a temporary, revocable 16-digit number that can be shared with agencies like a telecom operator, for verification of identity. The 'Virtual ID' along with biometrics will furnish limited details like names, addresses, and photographs to the agency concerned for verification.
However, experts feel that though the intention of the government is good, it has to be seen what security parameters are put in place to safeguard the 'Virtual ID'.

According to senior cyber lawyer Pavan Duggal, cybersecurity was not introduced at the start by the UIDAI and that is why there have been so many cases regarding data breach. Also, he said people have become increasingly concerned about privacy and consequently, the UIDAI had come up with the concept of a 'Virtual ID'.

UIDAI introduces 'Virtual ID' to avoid sharing of your Aadhaar number

In a bid to address privacy concerns, the UIDAI on Wednesday introduced a new concept of 'Virtual ID' which Aadhaar-card holder can generate from its website and give for various purposes, including SIM verification, instead of sharing the actual 12-digit biometric ID.

This will give the users the option of not sharing their Aadhaar number at the time of authentication.
The Virtual ID, which would be a random 16-digit number, together with biometrics of the user would give any authorised agency like a mobile company, limited details like name, address and photograph, which are enough for any verification.
Officials said a user can generate as many Virtual IDs as he or she wants. The older ID gets automatically cancelled once a fresh one is generated.

The Unique Identification Authority of India (UIDAI) has also introduced the concept of 'limited KYC' under which it will only provide need-based or limited details of a user to an authorised agency that is providing a particular service, say, a telco.

The Virtual ID will be a temporary and revocable 16 digit random number mapped to a person's Aadhaar number and the Aadhaar-issuing body will start accepting it from March 1, 2018.
From June 1, 2018, it will be compulsory for all agencies that undertake authentication to accept the Virtual ID from their users.
Agencies that do not migrate to the new system to offer this additional option to their users by the stipulated deadline will face financial disincentives.

Aadhaar could be a single target for cyber criminals: RBI researchers

The benefits of Aadhaar, India’s biometrics-based unique national identity system–the world’s largest–are unclear and the impact of direct benefit transfers it will be used to deliver to the poor is not studied enough, a new study published by an arm of the Reserve Bank of India (RBI) has concluded.

The paper, ‘Biometric and Its Impact in India’, was a part of Staff Papers series published in its October 2017 edition. It is written by S Ananth, an adjunct faculty at the Institute for Development and Research in Banking Technology (IDRBT), which was established by the RBI as an autonomous institute.

Aadhaar is becoming central to India’s public policy with increasing number of programmes being linked to it. And its scope is constantly increasing. In the seven years following its introduction, 1.12 billion Indians or 88.2% of the population have enrolled for Aadhaar, IndiaSpend reported in March, 2017.

Established by Unique Identification Authority of India (UIDAI) under Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, Aadhaar is now used for direct benefit transfers as well as distribution of foodgrains and essential commodities–under the public distribution system (PDS)–by the state. It includes various payments linked through Aadhaar-enabled payment system.

The Supreme Court has extended the deadline of linking of Aadhaar with various welfare schemes up to March 31, 2018.

The paper has flagged issues related to Aadhaar such as problems of access to the last mile, issues with the quality of authentication, unclear financial benefits and security concerns and said there needs to be caution in the manner in which the government is linking more economic programmes and activities with Aadhaar.

Ever since its inception, Aadhaar has been caught in various debates, especially over the issue of the citizen’s right to privacy and threat of information leak. The latest of these controversies is an investigative story reported in The Tribune on January 3, 2018. It alleged that unrestricted access to details of over one billion Aadhaar numbers can be purchased at as little as Rs 500.

By paying Rs 300 more, the details of any Aadhaar card can be printed, the report said. “..[It] is a major security breach,” the deputy director of UIDAI regional officer Chandigarh was quoted to have said.

Aadhaar database can be misused and abused: Edward Snowden

A day after the Unique Identification Authority of India (UIDAI) denied that there was any breach of the Aadhaar database, American whistleblower Edward Snowden said on Friday that the Aadhaar database conceived and introduced by the Indian government can also be misused and abused.

Retweeting CBS journalist Zack Whittaker's response on a BuzzFeed report on the breach of Aadhaar database in India, Snowden said, "It is the natural tendency of government to desire perfect records of private lives. History shows that no matter the laws, the result is abuse."

Whittaker had earlier said, "ICYMI. India has a national ID database with the private information of nearly 1.2 billion nationals. It's reportedly been breached. Admin accounts can be made and access can be sold to the database, reports BuzzFeed."

The UIDAI on Thursday said the Aadhaar data including biometric information is fully safe and secure.

It termed The Tribune report titled 'Rs 500, 10 minutes, and you have access to billion Aadhaar details' a case of misreporting.

"There has not been any Aadhaar data breach. The Aadhaar data including biometric information is fully safe and secure," the UIDAI said in a statement.

This development has come at a time when the Supreme Court is set to begin the final hearing of petitions challenging the legality of Aadhaar programme based on privacy concerns on January 17.

In August 2017, the Supreme Court held that privacy is a fundamental right under the Constitution of India.

After SC verdict on privacy, 5-judge Bench to test Aadhaar validity

In a landmark judgment, the Supreme Court on Thursday upheld the Right to Privacy as "a fundamental right" under Article 21 of the Indian Constitution, in a unanimous decision.

However, the verdict does not comment on whether the government's demand for Aadhaar to be linked to all financial transactions amounts to an infringement of privacy.

"The court has not said anything about whether Aadhaar is invalid or not," lawyer Prashant Bhushan was quoted as saying by television channels. "Right to privacy being a fundamental right means a lot for Aadhaar. It will now be seen whether the restrictions imposed by Aadhaar are reasonable restrictions or not," he added.

With the nine-judge Bench ruling against the government stand on privacy,  Aadhaar case will be referred to a five-judge Bench. The Bench will hear several petitions challenging the validity of the Act.

The Congress party, which had launched Aadhaar when it was in power, welcomed the verdict. “Path-breaking and seminal judgment. A great victory for liberty and freedom... Supreme Court rejects Modi government’s attempt to whittle down the right to privacy,” party’s chief spokesperson Randeep Singh Surjewala tweeted.

Earlier, the Supreme Court had on August 2 reserved its judgment over the issue of whether right to privacy is fundamental or not.

Aadhaar mandatory for stock markets: Brokers ask for more time

STOCK MARKET have asked brokers to furnish Aadhaar details for all their existing clients before the end of this year. Brokers fear they won't be able to meet the deadline and have asked for more time for compliance.

"The December deadline will be slightly cumbersome in terms of achieving 100 per cent compliance. We have told stock exchanges to give us a year to complete the full database," said CJ George, MD, Geojit Financial Services.

"There are legacy clients. There are a lot of investors who are not active now but were active in the past. We have asked for time for such accounts. Even if we give notice, they won't respond," he added.

In a notice last week, stock exchanges directed brokers to cease the accounts of clients who fail to submit Aadhaar details by December 31, 2017. Clients who have opened trading accounts after June 1, 2017, have been given six months to submit details.

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Income Tax dept launches new e-facility to link your Aadhaar with PAN

The Income Tax department has launched a new e-facility to link a person's Aadhaar with the Permanent Account Number (PAN), a mandatory procedure for filing I-T returns now.

The department's e-filing website — https://incometaxindiaefiling.Gov.In/ — has created a new link on its homepage making it "easy" to link the two unique identities of an individual.

The link requires a person to punch in his PAN number, Aadhaar number and the "exact name as given in the Aadhaar card".

"After verification from the UIDAI (Unique Identification Authority of India), the linking will be confirmed. In case of any minor mismatch in Aadhaar name provided, Aadhaar OTP (one time password) will be required," the department said in its advisory to taxpayers and individuals.

The OTP will be sent on the registered mobile number and email of the individual.

It urged them to ensure that the date of birth and gender in PAN and Aadhaar are exactly the same, to ensure linking without failure.

"There is no need to login or be registered on e-filing website (of the I-T department). This facility can be used by anyone to link their Aadhaar with PAN," it said.

The government, under the Finance Act 2017, has made it mandatory for taxpayers to quote Aadhaar or enrolment ID of Aadhaar application form for filing of income tax returns (ITR).

Also, Aadhaar has been made mandatory for applying for permanent account number with effect from July 1, 2017.

The department, till now, has linked over 1.18 Aadhaar with its PAN database.

While Aadhaar is issued by the UIDAI to a resident of India, PAN is a ten-digit alphanumeric number issued in the form of a laminated card by the I-T department to any person, firm or entity.
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It's a shame Indians don't want to pay taxes: SC talks tough on Aadhaar

The Supreme Court on Wednesday asked why there was no objection from lawmakers on the government’s decision to make Aadhaar mandatory for making permanent account number (PAN) cards, a move which was given effect by the latest budget from July 1.

“542 persons are sitting in Parliament, why do they not object to it? If they are not objecting, why should we go into it,” a Bench comprising Justices A K Sikri and Ashok Bhushan said.

When it was told that the Centre has earlier made a statement in the apex court that it would not make Aadhaar mandatory, the Bench said, “They cannot be bound by it. It cannot preclude Parliament from enacting a statutory provision.”

The court was hearing three petitions challenging the constitutional validity of section 139AA of the Income Tax (IT) Act. Section 139AA, introduced through the latest Budget and the Finance Act, 2017, provides for mandatory quoting of Aadhaar or enrolment ID of Aadhaar application form for filing of I-T returns and making application for allotment of PAN with effect from July 1, 2017.

The Bench also observed that tax evasion existed in India and it was a “shame” that citizens do not want to pay taxes.

The court said there was no doubt that Aadhaar should be voluntary and observed since tax evasion existed, the government could bring in new statute to stop such “leakage”.

Defending the Centre’s stand to make Aadhaar mandatory for filing of income tax returns and to apply for PAN, Attorney-General Mukul Rohatgi referred to around 10 lakh fake PAN cards and said Aadhaar was the only system which could prevent duplication or fake cards.

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BHIM: Aadhaar-based app launched to simplify digital payments

Breaking News - Prime Minister Narendra Modi on Friday launched an Aadhaar-based mobile payment application called BHIM (Bharat Interface for Money).

On day 50 of the window provided by the government to citizens to exchange or deposit old currency notes of Rs 500 and Rs 1,000 denominations, the Prime Minister at a 'Digi Dhan Mela' event in the capital, asked citizens to make at least five digital transactions, so as to understand the concept behind e-payments, and then use it extensively.

"Download it on a smartphone or on a feature phone. It is not necessary to have the internet for this app. In the next two weeks, one more work is being done, which will increase the power of BHIM so much that you would be able to withdraw money even with your fingerprints," he said.

BHIM is a biometric and rebranded version of UPI (Unified Payment Interface) and USSD (Unstructured Supplementary Service Data). It is expected to minimise the role of plastic cards and point-of-sale machines, once believed essential for a less-cash society.(Read More)