Aadhaar cannot be made mandatory for welfare schemes, SC says

In a petition filed against the government's move to make Aadhaar card compulsory for a spate of schemes, the Supreme Court Monday observed that the Aadhaar cannot be made mandatory for availing benefits under the government's welfare schemes.

The observation reiterates the stance taken by the Apex Court on an earlier plea in 2015, while maintaining it will not allow an urgent hearing in the matter.

The SC observation, however, did not rule out the possibility of Aadhaar being made mandatory for non-benefit schemes.

"Aadhaar can't be mandatory for social welfare schemes but can be used for non-benefit schemes. Our earlier order is very clear. You can't stop government from using Aadhaar for non-benefit schemes like Income Tax."

In October 2015 the SC had allowed voluntary use of Aadhar cards in welfare schemes including MGNREGA, pension and provident fund schemes.

A five-judge constitutional bench had back then put a caveat in its interim order for the government saying Aadhar card scheme will be voluntary till such time as it is finally declared to be otherwise by the court.

The government’s ambitious Aadhaar project has gained significant ground with nearly 112 crore people already on board. Close to 50 percent digitally able people having their Aadhaar linked to bank accounts.

The project, believed to be somewhat akin to the social security number in some developed countries, albeit not legally mandatory, now covers nearly 50 government schemes.

Recently, the government linked the mid-day meal scheme with Aadhaar even as it said those without the card would continue to benefit from the scheme.

Among non-welfare schemes, obtaining a driver's licence, getting a mobile phone connection, availing the employee provident fund and tax filing have all been brought under the Aadhaar ambit.

However, multiple petitions have been filed with the Apex Court concerning privacy of citizens considering data collection for issue of Aadhaar is done by private agencies.

While the SC agreed data collection by private agencies is not a good idea it said a seven-judge bench has to be set up to hear the pleas challenging the Aadhaar but "right now it is not possible."