No Mandatory Requirement Of Aadhaar For MSME Udyam Registration: Centre To Gujarat High Court

The Ministry of Micro, Small and Medium Enterprises (MSME) on Monday informed the Gujarat High Court that there is no mandatory requirement of Aadhaar Number for registration of businesses with MSME Udyam Registration.

The Court was hearing a PIL seeking quashing of the part of the Notification dated June 26, 2020 issued by MSME, so far as it allegedly mandatorily demands Aadhaar Number from the business persons for MSME Udyam registration.

It was the grievance of the petitioner that by the impugned notification, the authority was compelling such persons, who sought registration under the Udyam Registration, to provide Aadhar Card.

In response to the notice issued by the court, the respondents filed two affidavits dated August 29, 2022 and November 30, 2022.

Vide affidavit dated August 29, 2022, the Joint Director & Head of Office at MSME – Development & Facilitation Office, Ahmedabad submitted as follows:

• I say and submit that the Aadhaar number is not used for registration purpose, but only for OTP based verification of the person or authorized person for filing online Udyam registration. The Aadhaar information is neither stored nor shared with anyone in the light of UIDAI provisions.
• In case of non-availability of Aadhaar Number of the proprietor or Authorized person of the enterprise, the District Industries Center (DIC) of the District concerned of States/UTs assists the enterprise to get them registered through “Assisted Filing Option” on the basis of some other relevant documents and in that case Aadhaar is not required even for verification of the person filing online Udyam Registration.

In view of the aforesaid affidavit, the counsel for the peititoner did not press the petition and thus the court disposed the same.

Case Title: M/s Renovate Industries LLP. v. Government of India, Ministry of Micro, Small and Medium Enterprises

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