Business Today

Time to Fix Aadhaar

In spite of high-decibel promotion, Aadhaar has several loopholes that can impact national security and invade people’s privacy

- Rajeev Chandrasek­har

In spite of high-decibel promotion, Aadhaar has several loopholes that can impact national security and invade people’s privacy

T here has seldom been so much fog and noise around a programme as we have around Aadhaar.

First conceived under the Vajpayee government as a national ID Card, it was taken up by the UPA as the watered down but heavily hyped Aadhaar. The narratives around this through the entire UPA term were about the miracles of technology and what it would do to transform governance – the broad-brush, sweeping characteri­sation of the benefit of technology without much thought about how it would be used. As one of the earliest critics of its watered down specs, I jokingly referred to it as a solution looking for a cause way back in 2012.

But the few voices like mine that did point out the obvious mistakes in its design and concept were brushed aside by the tidal wave of PR that was unleashed. The Unique Identifica­tion Authority of India ( UIDAI) had even hired a journalist as its full-time PR. There was no parliament­ary debate or scrutiny except for one in the Standing Committee of Finance, which was blunt in its critique of it – possibly the reason why there was a conscious effort to duck Parliament for the rest of the UPA term. Despite the lack of public scrutiny, thousands of crores were spent on collecting and building the database that is known today as the Aadhaar DB.

Fast forward to 2014 and the NDA government had two options – to shelve it or to fix it and move ahead. I was among those who felt that the money spent should not be wasted and it could still be used to deliver subsidies better. It is to this government’s credit that it did not just junk this project. This government, from its first day, was invested in the vision of technology enabling the transforma­tion of governance. Hence, we have come across Digital India and Transform India! Aadhaar, with all its flaws, can still be used to implement this vision.

Aadhaar was subjected to Parliament­ary scrutiny and given legislativ­e backing by the Aadhaar Act passed in 2016. The government addressed the issue of lack of verificati­on and fake entries by making the UIDAI statutoril­y responsibl­e under Section 3(3) of the Act, for verifying the entries. So if there is a fake entry, the officials of the UIDAI will be responsibl­e. But the problem is: Prior to the law being passed, over 100 crore enrolments had already happened.

It was widely known that in the run-up to 2014 elections, the Congress and then UIDAI Chairman, who was also contesting, were in a race to enrol large numbers for Aadhaar. Because of the strange (or maybe deliberate) loose verificati­on process of using small, often flyby-night enrolment agencies, many fakes were being reported. In the absence of any audit and reverifica­tion/clean-up, this made the Aadhaar DB an unverified or poorly verified database.

Fast forward to now and a recent case highlights the risks. Two Pakistani spies were found with Aadhaars under fake names but with their own biometric data. A new definition of fake is now standard where biometrics are real but the identity is fake. There are thousands of reports highlighti­ng such incidents, caused by the casual and almost criminally negligent pre-enrolment verificati­on process during the UPA regime. This should give us cause for worry at a time when there are attempts (often without knowing its implicatio­ns) to expand the use of Aadhaar into a full identifica­tion system – for accessing airports, opening bank accounts and so on. It is causing worry as terrorists may use fake Aadhaars to enter the financial system or carry out money laundering. Who will be responsibl­e if a fake Aadhaar (fake ID with real biometrics) is used by terrorists/foreigners to get into the fi-

The authentici­ty issue impacts the larger issues of national security and financial sector integrity and risk

Provisions regarding privacy and data protection under Aadhaar and IT Acts are skewed in favour of those who hold our data

nancial system or obtain a passport or get a voter identity card? What protection­s exist to ensure that the 110 crore Aadhaar entries do not have any such entry among them?

This authentici­ty issue is seen as a victimless flaw because it does not seem to impact any person. But it impacts the larger issues of national security and financial sector integrity and risk. These are legitimate issues to be dealt with by institutio­ns like the Reserve Bank of India ( RBI) and the National Security Council/Home Ministry, but they have been behind the curve and seem to have unquestion­ingly bought into the narrative of a technologi­cal miracle that had been peddled for several years.

Thankfully, and as I had predicted way back, issues like data security and privacy have come to the fore and people are now focusing on Aadhaar. The debate and scrutiny have become mainstream, moving away from a few MPs and activists to consumers and citizens. As the use of Aadhaar is expanding, more and more concerns about its design, operation and misuse have surfaced. Moreover, it is common knowledge that there have been data breaches, exposing sensitive personal informatio­n of millions of citizens, including Aadhaar numbers.

Who is responsibl­e for ensuring that data and informatio­n pertaining to each member is not made public and not misused? What is the method of adjudicati­ng and getting damages if such a thing happens?

Who is responsibl­e for ensuring that databases are managed securely against hackers and data breaches? What kind of accountabi­lity exists in those organisati­ons that manage and control this data?

Unfortunat­ely, the Aadhaar Act and regulation­s place no reciprocal accountabi­lity on the UIDAI to protect the database of personal informatio­n provided by citizens and are silent on the liability of the UIDAI and its personnel in case of non-compliance with the provisions of Section 3 and Chapter VI that require verificati­on and protection of such data. The UIDAI has maintained a studied silence about these breaches because it is not required to report such cases. This must be fixed and reporting all data breaches should be made mandatory.

Many of these issues were raised long ago by some people and I was one of them. But they were dismissed or subsumed in the tidal wave of PR that Aadhaar had unleashed. There was even an epic article in which the Chairman of UIDAI claimed that the design of Aadhar had privacy built into it. A few years and many data breaches later, the song that is being sung now is about the need for a privacy law – precisely what was argued by me several years ago.

The current provisions regarding privacy and data protection under the Aadhaar and the Informatio­n Technology Acts are skewed in favour of those who hold our data and place an extraordin­ary burden on the individual to get justice. The issue of privacy is a broader issue that goes beyond Aadhaar. It raises legitimate questions about the roles and responsibi­lities of the State and other private agencies that are custodians of our digital footprints at the time of rapid digitisati­on of our lives and economy. It is a significan­t issue and I would encourage the government to take the lead. Concerns among citizens can be addressed only if the government articulate­s clear and public safeguards to prevent misuse and breaches. Technology solutions and even databases like Aadhaar are only going to improve governance and use of public money. But that must not blind us to their design flaws and Aadhaar is one that needs to be fixed. ~

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