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'Aadhaar not a solution to prevent bank frauds', says Supreme Court


Aadhaar is not a solution for curbing bank frauds. The bank knows whom it is giving the loan to and it is the bank officials who are hand in glove with the fraudsters, the Supreme Court observed.

Countering the argument put out by the Centre, the Bench said that there is very little Aadhaar can do to stop bank frauds. It cannot be the solution as there is no doubt about the identity of the fraudsters, the Court also said.

Aadhaar not a solution to prevent bank frauds says Supreme Court

The Centre had said that Aadhaar is the panacea for all ills in the system including bank frauds.

Attorney General, K K Venugopal had referred to various reports including that of World Bank and said that they acknowledged that India has taken a step to give an identity to the "poorest of poor", which would finally help in achieving the task of financial inclusion of all.

The top law officer said that that the development will slow down if there was judicial review of every state action and "courts should not interfere in matters of technical expertise".

The only duty of the court is to expound the language of the law and it may not decide whether a particular policy decision is fair or not, he said.

The bench asked Venugopal that the people, opposed to the scheme, say that it violated the doctrine of proportionality.

The Aadhaar scheme satisfies the test of proportionality by showing a rational nexus between the means and the goal, he said, adding that all subsidies were part of the right to life with dignity and would prevail over the right to privacy.

The State has a legitimate state interest in rolling out Aadhaar, he said.

On the issue of 16-digit virtual Aadhaar ID, Venugopal said that it is an excellent safety measure.

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