'Which Law Says Bank Accounts Can't Be Operated Without Aadhaar?' Supreme Court Questions Delhi Govt Over Denial Of Workers' Allowances

The Supreme Court on Wednesday (April 2) questioned the Delhi Government for not paying subsistence allowance to 5,907 eligible workers affected by Graded Response Action Plan (GRAP) restrictions who do not have Aadhaar-linked bank accounts.

A bench comprising Justice Abhay Oka and Justice Ujjal Bhuyan asked the Delhi government to address the Court on whether verified workers can be denied payment on the ground that their bank accounts are not linked with Aadhaar. This issue is to be considered on the next date of hearing.

“Delhi government will also address the court on the question whether verified workers can be denied amount payable on the ground that their accounts are not seeded with Aadhar. This aspect to be considered on the next date”, the Court ordered.

The Court was hearing the ongoing case of M.C. Mehta v. Union of India & Ors., concerning pollution management in Delhi NCR. The Delhi government submitted an affidavit detailing the status of subsistence allowance payments made to construction workers affected by restrictions under the GRAP.

During the hearing, the Counsel for Delhi government submitted that payments to certain workers could not be made because they failed to submit details of Aadhaar seeded bank accounts.

However, Justice Abhay Oka did not accept this contention, asking, “Is there any such law that says bank account cannot be operated without Aadhaar? What law provides this?”

The Counsel conceded, “there is no such law.” The Court directed the Delhi government to address it on this issue.

According to the affidavit filed by the Special Secretary of Delhi Environment Department, the Delhi Building and Other Construction Workers Welfare (DBOCWW) Board had, in its Board meeting on December 3, 2024, resolved to pay a subsistence allowance of Rs. 8,000 to each eligible beneficiary. The Board has disbursed Rs. 74,61,76,000 to 93,272 workers.

However, the affidavit stated that payments were made only to Aadhaar-seeded bank accounts, resulting in some beneficiaries not receiving their allowances. According to the affidavit, attempts were made to notify these workers through SMS and IVR messages on multiple dates, requesting them to link their accounts with Aadhaar. Despite further attempts to credit payments, as of March 25, 2025, 5,907 eligible workers had still not received their payments due to non-Aadhaar-seeded accounts.

The affidavit further detailed efforts to verify wage loss among affected workers. As per the affidavit, letters were sent to 15 government departments and agencies engaged in construction activities, requesting details of impacted workers. Six departments responded, stating that no workers in their jurisdictions had been affected. The remaining nine departments were again approached, but no further information was received.

The affidavit noted that district labour officers were asked to provide information on affected workers through registered contractors and establishments. Based on their input, 505 workers were identified and granted subsistence allowance. However, further requests for additional details did not lead to any new responses, the affidavit said.

Additionally, 36 trade unions were asked to submit details of affected workers. Three unions responded with information on 82 workers, of whom 14 were found eligible for subsistence allowance. Their payments were sanctioned on March 25 and March 27, 2025, the affidavit stated.

The Court directed the Centre For Holistic Development to file an affidavit addressing the Delhi government's affidavit.

Previously, the Court had on February 28, 2025, directed all NCR states to ensure payment of compensation to construction workers affected by construction bans under GRAP measures. The court had emphasized that such payments should be made using labour cess funds, in line with its earlier order dated November 24, 2021.

Case no. – WP (C) 13029/1985

Case Title – MC Mehta v. Union of India 

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