Indian Polity : Supreme Court Of India

Q 4 / 21

UPSC CSE Prelims 2020

Consider the following statements:

  1. Aadhaar metadata cannot be stored for more than three months.
  2. State cannot enter into any contract with private corporations for sharing of Aadhaar data.
  3. Aadhaar is mandatory for obtaining insurance products.
  4. Aadhaar is mandatory for getting benefits funded out of the Consolidated Fund of India.

Which of the statements given above is/are correct?

EXPLANATION

Correct Option (b):

Statement 2 is correct. The Supreme Court, in its 2018 judgment in Justice K.S. Puttaswamy v. Union of India, ruled that private entities cannot be permitted to use Aadhaar for authentication. This effectively prohibits the State from entering into contracts with private corporations for sharing Aadhaar data for authentication purposes.

Statement 4 is correct. Section 7 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, mandates Aadhaar for individuals receiving subsidies, benefits, or services funded from the Consolidated Fund of India. This provision was upheld by the Supreme Court to ensure targeted delivery of welfare schemes.

Incorrect Options:

Statement 1 is incorrect. As per the Aadhaar (Authentication) Regulations, 2016, authentication transaction metadata can be stored for a maximum period of six months, not three months.

Statement 3 is incorrect. The Supreme Court's 2018 judgment clarified that Aadhaar cannot be made mandatory for services not funded by the Consolidated Fund of India. This includes services like obtaining insurance products, mobile connections, or school admissions. While Aadhaar can be used voluntarily as a Know Your Customer (KYC) document, it cannot be mandated by insurance companies.

SOURCEIndian Polity by M. Laxmikanth, Chapter 26: Supreme Court