How can bank a/c be frozen if there is no Aadhaar: SC

CONCERN Law doesn’t provide for penal action, says court

NEWDELHI: The Supreme Court on Thursday asked the government how it could make a rule to freeze a bank account for not linking it with Aadhaar and said that a law that called for the 12-digit unique identification number to be linked to the accounts did not provide for any penal action.

A Constitution bench led by Chief Justice Dipak Misra also expressed concern over “information surveillance” and referred to the recent Facebook data breach to point out that even the Aadhaar data of 1.3 billion people could be used for commercial purposes in the absence of a strong data protection law.

The court is hearing a set of petitions challenging the validity of Aadhaar. The query over bank accounts was posed to additional solicitor general Tushar Mehta when he, on the behalf of the Unique Identification Authority of India, defended rules under the PMLA that say an account “ceases to be operational” if its not linked to Aadhaar. CJI Misra raised the first question: “Can you prescribe an onerous condition like shut the bank account?”

Justice DY Chandrachud elaborated on the CJI’s query, reading out the provisions of PMLA. He said they only asked the government to prescribe a procedure for banks or financial institutions to identify its clients and maintain records. “What you have done, in the exercise of power, is to provide for consequences in a penal nature. You say a bank account holder would not be entitled to operate the account if not linked to Aadhaar. Are you authorised to do this under the law?” Justice Chandrachud said.

These bank accounts have been there for years, much before this law came. Identification took place as per law and now you want a new identity.

JUSTICE SIKRI

What you have done, in the exercise of power, is to provide for consequences in a penal nature .... Are you authorised to do this?

JUSTICE CHANDRACHUD