The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016

• The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016 was introduced in Lok Sabha.
• More than six years have passed since the first attempt was made to give legal validity to Aadhaar, an ambitious project that seeks to provide unique identification numbers to each individual in a country of over a billion people, collecting demographic and biometric information in the process.
• And through these years, amid many legal and political challenges and a change in government, over 98 crore numbers have been issued.
• The stated idea of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016, is to provide for “efficient, transparent, and targeted delivery of subsidies, benefits and services”.

Highlights:

• The Bill intends to provide for targeted delivery of subsidies and services to individuals residing in India by assigning them unique identity numbers, called Aadhaar numbers.
• Eligibility: Every resident shall be entitled to obtain an Aadhaar number. A resident is a person who has resided in India for 182 days, in the one year preceding the date of application for enrolment for Aadhaar.
• Information to be submitted: To obtain an Aadhaar number, an individual has to submit his, (i) biometric (photograph, finger print, iris scan) and (ii) demographic (name, date of birth, address) information. The Unique Identification Authority (UID) may specify other biometric and demographic information to be collected by regulations.
• Enrolment: At the time of enrolment, the individual will be informed of, (i) the manner in which the information will be used, (ii) the nature of recipients with whom the information will be shared, and (iii) the right to access this information. After verification of information provided by a person, an Aadhaar number will be issued to him.
• Use of Aadhaar number: To verify the identity of a person receiving a subsidy or a service, the government may require them to have an Aadhaar number. If a person does not have an Aadhaar number, government will require them to apply for it, and in the meanwhile, provide an alternative means of identification. Any public or private entity can accept the Aadhaar number as a proof of identity of the Aadhaar number holder, for any purpose. Aadhaar number cannot be a proof of citizenship or domicile.
• Functions and composition of authority: The key functions of the UID authority include, (i) specifying demographic and biometric information to be collected during enrolment, (ii) assigning Aadhaar numbers to individuals, (iii) authenticating Aadhaar numbers, and (iv) specifying the usage of Aadhaar numbers for delivery of subsidies and services. The UID authority will consist of a chairperson, two part-time members and a chief executive officer. The chairperson and members are required to have experience of at least ten years in matters such as technology, governance, etc.
• Authentication: The UID authority will authenticate the Aadhar number of an individual, if an entity makes such a request. A requesting entity (an agency or person that wants to authenticate information of a person) has to obtain the consent of an individual before collecting his information. The agency can use the disclosed information only for purposes for which the individual has given consent.
• Response to authentication query: The UID authority shall respond to an authentication query with a positive, negative or other appropriate response. However, it is not permitted to share an individual’s finger print, iris scan and other biological attributes.
• Authentication record maintained by UID authority: The UID authority shall record the entity requesting verification of a person’s identity, the time of request and the response received by the entity. The purpose for which an individual's identity needs to be verified will not be maintained.
• Protection of information: Biometric information such as an individual’s finger print, iris scan and other biological attributes (specified by regulations) will be used only for Aadhaar enrolment and authentication, and for no other purpose. Such information will not be shared with anyone, nor will it be displayed publicly, except for purposes specified by regulations.
• Cases when information may be revealed: In two cases, information may be revealed: a) In the interest of national security, a Joint Secretary in the central government may issue a direction for revealing, (i) Aadhaar number, (ii) biometric information (iris scan, finger print and other biological attributes specified by regulations), (iii) demographic information, and (iv) photograph. Such a decision will be reviewed by an Oversight Committee (comprising Cabinet Secretary, Secretaries of Legal Affairs and Electronics and Information Technology) and will be valid for six months; b) On the order of a court, (i) an individual’s Aadhaar number, (ii) photograph, and (iii) demographic information, may be revealed.
• Offences and penalties: A person may be punished with imprisonment upto three years and minimum fine of Rs 10 lakh for unauthorised access to the centralized data-base, including revealing any information stored in it. If a requesting entity and an enrolling agency fail to comply with rules, they shall be punished with imprisonment upto one year or a fine upto Rs 10,000 or Rs one lakh (in case of a company), or with both.
• Cognizance of offence: No court shall take cognizance of any offence except on a complaint made by the UID authority or a person authorised by it.

Analysis:

• This bill has a clause that says the unique numbers will not be considered as proof of citizenship, which is welcome. And yet, the process of legislating for Aadhaar has not been wholly reassuring.
• The Bill has attracted immediate criticism for being introduced as a money bill, by virtue of which it does not require approval of the Rajya Sabha.
• Section 7 of the Bill makes proof of Aadhaar necessary for “receipt of certain subsidies, benefits and services”. But Supreme court already ruled that Aadhaar cannot be made mandatory.
• A key concern over the collection of personal information on this scale is data protection. There are provisions in this Bill that seem to address the concern, including one that prohibits any official from revealing information in the data repository to anyone. But the exceptions cause unease. Two provisions are particularly troubling. The first is Section 29(4), by which no Aadhaar number or biometric information will be made public “except for the purposes as may be specified by regulations”. The second, which experts have already flagged, is Section(33), under which the inbuilt confidentiality clauses will not stand when it concerns national security.
• Without robust laws to protect their data, citizens would be rendered vulnerable. It is not about just snooping. It is also being said that in order to be useful and effective, Aadhaar data might have to be used alongside other databases. That could trigger further privacy questions. There is little doubt that India needs to streamline the way it delivers benefits, and to empower citizens with a basic identification document. But this cannot be done without ensuring the strictest protection of privacy.
• But on the positive side, It is important infrastructure to enable government to go paperless, presence-less and cashless. This will catapult India to the front of the league of nations whose governments use technology to create an effective, efficient and modern welfare state that treats its people with dignity.
• Enrolment is voluntary. It shall only be used as proof of identity and not as proof of citizenship. It enables the government to prevent fraud, corruption and waste by requiring the Aadhaar number for delivery of any benefit, subsidy or service from the Consolidated Fund of India, such as LPG subsidy, MGNREGA wages, various insurance schemes, provident fund schemes, government scholarships, and much more. It does not prohibit the usage of Aadhaar for any other purpose by any public or private entity.
• It provides privacy protection at an unprecedented level for Indian law. For example, it has, one, “use limitation” — it can only be used for the purpose for which the user gives consent. Two, “collection limitation” — no information other than demographic (name, address, date of birth, sex and, optionally, email id/ mobile number) and biometric (photo, fingerprint and iris scan) will be collected. No other personal information of an individual will be in the Aadhaar database. Three, “access and rectification” — the user can access his own information and has an obligation to rectify it if it needs updating. Four, no demographic information or identity information received from the Unique Identification Authority of India can be displayed publicly. Five, the only exception to certain confidentiality (but not security) obligations is national security, provided an order to disclose information is issued either by a court, or by a joint secretary or higher officer, and vetted by a high-powered committee headed by the cabinet secretary. Even then, sharing of a particular piece of information will be permitted only for a limited time period. Further, that no core biometric information can be shared is a principle without exception — people saying that core biometric information will be shared are wrong because Clause 29(1) is not overridden by Clause 33(2). Finally, the bill includes stringent penalties, including imprisonment for breach of privacy and other violations. Overall, the law represents a useful synthesis of the learning, feedback and advice that two governments have received and should take care of the Supreme Court’s concerns that Aadhaar was functioning in a legislative vacuum, without accountability.
• It could eliminate more than 2,000 crore pages of paper (a low guesstimate). It could enable more than 300 million daily seekers of government services to save at least two hours every day. It could eliminate fraud in government subsidies of at least Rs 50,000 crore every year. It would enable linking individuals to an organisation that has a unique enterprise number and this would shift enforcement to big data rather than feet-on-street. It could unclog our highways and eliminate waiting rooms in hospitals. It could eliminate fraud in degrees and substantially improve labour market matching.
• Aadhaar can accelerate India’s rise and fulfil our tryst with destiny. It is time for legislation, action and innovation.
   

By: Vishal