Aadhaar-Bank Mandatory Linking: Allahabad HC 'Agrees' With Centre's Argument To Seek Review Of Supreme Court's 2018 Verdict

It was further suggested by the counsel appearing for UOI, S. P. Singh that the banks can keep an eye on the account of all the customers through the Aadhar card-bank linking, however, however, he added that Supreme Court has abolished the mandatory linking of the Aadhar cards with bank accounts.

Essentially, the Counsel for the UOI was referring to the 2018 decision of the Supreme Court in the case of Justice K. S. Puttaswamy (Retd.) and Anr. vs Union Of India And Ors. [Puttaswamy (Aadhaar-5J.) v Union of India], wherein the Court had read down some of the provisions of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act 2016, and struck down a few but significant ones (mainly Section 33(2), 47 and 57), and upheld the rest.

Here, it may be noted that the Supreme Court had held that the move of mandatory linking of Aadhaar with bank account does not satisfy the test of proportionality. It was also held that Mandatory linking of mobile numbers with Aadhaar would be illegal and unconstitutional as it is not backed by any law.

Before the Allahabad High Court, the UOI of India, referring to Justice K. S. Puttaswamy (Retd.) Judgment said that since condition imposed by the Centre of Adhaar-Bank account mandatory linking had been held to be bad in law, therefore, it was not possible for the banks to press for mandatory linking of adhaar cards with bank accounts.

Significantly, in response to this, the Court expressed its agreement with a further argument made by the Union of India to file a review petition against the Supreme Court's 2018 Adhaar Verdict

"The court agrees with the contention of Shri S. P. Singh that he should file a review petition in the Supreme Court regarding the mandatory linking of the Aadhar card so that (as Counsel Singh argued) the Aadhar card could be linked with the bank account holders and online bank fraud can be prevented," the Court said.

"Bank account holders' money should be safe. Not only because the customer deposits money in the bank so that he/she can withdraw it when needed, but also because the money deposited by the customers in the bank is white and due to which, the economic condition of the country also improves. On the other hand, there are people in the country who do not deposit crores of rupees in the bank and keep it hidden in the basements of their houses. The banks do not get any benefit from it, and they also hollow out the economic condition of the country. In such a situation, that customer of the bank is more honest towards the country and his money should be kept safe by the bank at all costs and if in any way the money is withdrawn by cybercriminals, then for this, the bank has to take responsibility for it," the Court opined.

Essentially, 5 lacs rupees was withdrawn from the account of retired HC Judge Justice Poonam Srivastava. the matter was probed and 3 accused were arrested from Jamtara in Jharkhand. Thereafter, they moved the court by way of filing bail pleas and opposed the charges against them.

In June 2021, during the course of the hearing of this matter, the Allahabad High Court had observed that the police authorities are not making serious efforts in controlling these types of fraudulent activities.

Read More about the Case here: Fraudulent Withdrawal Of Money from Rtd. Judge's Account- "Police Not Serious To Control Such Fraudulent Activities": Allahabad High Court

Case title - Neeraj Mandal @ Rakesh v. State of U.P and connected matters
Case Citation: 2022 LiveLaw (AB) 11