Why this matters now
Aadhaar is tested for the Money Bill classification, Puttaswamy I (Right to Privacy, 2017) 9-judge bench, Puttaswamy II (Aadhaar, 2018) 5-judge bench upholding the Act with restrictions (5:4 verdict), the 2019 Amendment allowing voluntary use, and DBT savings claims.
Genesis: UIDAI 2009 → Act 2016
The Unique Identification Authority of India (UIDAI) was set up by an executive notification on 28 January 2009 under the UPA-2 (Nilekani as first Chair). The first Aadhaar number was issued on 29 Sept 2010 (to Ranjana Sonawane, Tembhli village, Nandurbar, Maharashtra). UPA tried to pass the National Identification Authority of India Bill 2010 but a Parliamentary Standing Committee rejected it in Dec 2011. NDA passed the Aadhaar Act 2016 as a Money Bill on 16 March 2016 (controversial — Speaker’s certification challenged).
Key provisions
| Section | Provision |
|---|---|
| § 3 | Voluntary enrolment of residents; 12-digit number issued; biometric (fingerprint, iris) + demographic data captured. |
| § 7 | Mandatory linking for subsidies, benefits and services drawn from Consolidated Fund of India. |
| § 11-14 | UIDAI as statutory body (was executive earlier); CEO + Board. |
| § 28-29 | Privacy of Aadhaar data — biometric never to be shared; CIDR (Central Identities Data Repository) encrypted. |
| § 33 | Disclosure only on order of District Judge or higher (revised by 2019 Amendment to require Joint Secretary level + judicial review). |
| § 47 | Cognizance of offence only on UIDAI complaint — STRUCK DOWN by Puttaswamy II. |
| § 57 | Allowed private entities to use Aadhaar for KYC — STRUCK DOWN by Puttaswamy II. |
The two Puttaswamy judgments
Justice K.S. Puttaswamy v. Union of India (24 Aug 2017) — 9-judge Constitution Bench unanimously held that Right to Privacy is a Fundamental Right under Article 21, overruling Kharak Singh and M.P. Sharma. Tests for privacy infringement set out: (a) law must exist; (b) legitimate State aim; (c) proportionality.
Puttaswamy II (26 Sept 2018, 5-judge bench) — reviewed Aadhaar Act under privacy test. 4:1 majority (Justice Sikri authoring, with CJI Misra, Khanwilkar & Bhushan; Justice Chandrachud dissenting) upheld the Act with these restrictions:
- UPHELD: Section 7 mandatory linking for subsidies. PAN-Aadhaar linking (Sec 139AA Income Tax).
- STRUCK DOWN: Section 57 (private entity use); Section 47 (only UIDAI complaint); banks and telcos cannot mandate Aadhaar; CBSE/UGC/NEET cannot mandate Aadhaar for exams; minors cannot be denied benefits for lack of Aadhaar.
- UPHELD AS MONEY BILL: Aadhaar was correctly passed as Money Bill (the Court declined to review the Speaker’s certification — Justice Chandrachud dissented strongly).
Aadhaar Amendment 2019
Post-Puttaswamy II, the Aadhaar and Other Laws (Amendment) Act 2019 reintroduced VOLUNTARY use of Aadhaar by banks and telcos (the offline verification model). Private entities can use Aadhaar with the resident’s consent under specified circumstances. Penalties for breach were strengthened.
UPSC angle
Know Aadhaar Act 2016 — UIDAI executive 2009 (Nilekani) → Act 16 March 2016 (MONEY BILL); first Aadhaar 29 Sept 2010 (Ranjana Sonawane, Tembhli, Nandurbar); §3 voluntary enrolment, §7 mandatory linking for subsidies from CFI; Puttaswamy I 24 Aug 2017 (9-judge, RIGHT TO PRIVACY = FUNDAMENTAL RIGHT, overruled Kharak Singh/MP Sharma, tests = law/legitimate aim/proportionality); Puttaswamy II 26 Sept 2018 (5-judge 4:1 with Chandrachud dissenting; UPHELD §7 + PAN-Aadhaar 139AA + Money Bill classification; STRUCK DOWN §57 private entities + §47 UIDAI-only complaint; banks/telcos/CBSE cannot mandate); Aadhaar Amendment Act 2019 allows voluntary use by private entities with consent.
Frequently asked questions
Was Aadhaar passed as a Money Bill?
Yes — in March 2016. The Speaker’s Money Bill certification was upheld by 4:1 in Puttaswamy II (2018), with Justice Chandrachud dissenting.
What was the Puttaswamy II verdict?
A 5-judge bench by 4:1 upheld Aadhaar with restrictions — allowed Section 7 mandatory linking for subsidies but struck down Section 57 (private entity use) and Section 47 (only UIDAI complaint).
What did Puttaswamy I establish?
That the Right to Privacy is a Fundamental Right under Article 21 (9-judge unanimous, 24 Aug 2017).
Did the 2019 Amendment restore private use of Aadhaar?
Yes — in voluntary form, with the resident’s consent and through offline verification.