Karnataka High Court Allows ED To Access Aadhar Database For Probing Case Under PMLA

A single judge, Justice Hemant Chandangoudar while allowing the petition said “An investigation into an offence of money laundering being legitimate state interest and the petitioner herein being statutorily empowered to investigate into an offence under PMLA, it is appropriate that a Mandamus be granted directing the respondent No.2 to disclose the true identities of those as sought for herein.”

The agency is investigating a case against Special Land Acquisition officer VD Sajjan and others, where fraudulent bank accounts were opened in the names of impersonated individuals, and fraudulent/double/ second compensation has been routed from the Karnataka Industrial Area Development Board (KIADB) into the said fraudulent bank accounts. 

The bank accounts have been allegedly created by falsifying Aadhar data, whereby Aadhar cards were fraudulently obtained in the names of impersonated individuals.

It was argued that the investigation has revealed that the address is non-existent, as mentioned in the Aadhar details. One Sunil Surendra Yadav has been impersonated as Sanjay Appasaheb Desai, as corroborated/confirmed by the statement of the bona fide landlord - Sanjay Appasaheb Desai.

Thus, true details of the above mentioned Aadhar cards is essential for investigation in the offence of money laundering and pertinently, to trace the transfer of monies, which are proceeds of crime.

Findings:

The bench referred to Section 33 of the Aadhar Act, 2016 deals with disclosure of identities. It said “The above Section clearly envisages a disclosure pursuant to an order of a Court not inferior than this Court, and the Apex Court in the case of K.S. Puttaswamy v. Union of India, 2019 1 SCC 1, has observed that the data may be collected/disclosed to the Executive in pursuance of legitimate purposes, including prevention and investigation of crimes.”

Following which it allowed the petition and said “The respondent No. 2 is directed to permit the petitioner to examine the Aadhar database of the persons/numbers enumerated below, including identity information or authentication records, to verify whether any changes of name, address, phone number, etc. have been in respect of the Aadhar numbers.”

It clarified that “The petitioner is hereby directed to not use the subject information and documents for any purpose alien to the investigation of the offences and prosecution of the offenders.”

Appearance: Advocate P Prasanna Kumar for Petitioner.

Deputy Solicitor General Shanti Bhushan for Respondents

Citation No: 2025 LiveLaw (Kar) 63

Case Title: Directorate of Enforcement AND Union of India & ANR

Case No: WRIT PETITION NO. 30424 OF 2024

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