Why Justice Chandrachud staunchly opposed treating Aadhaar as Money Bill?

New Delhi, Sep 26: Justice DY Chandrachud, during the hearing on the constitutional validity of the Aadhaar today (September 26), came down heavily on the Union Government's move to introduce the Aadhaar Bill as a Money Bill in the Rajya Sabha and went to the extent of calling it "a fraud on Constitution".

Money Bills can be introduced only in the Lok Sabha, and the Rajya Sabha cannot make amendments to such bills passed by the Lok Sabha. It needs to be noted that the BJP-led Centre has majority in the Lok Sabha and not in Rajya Sabha. So, the Centre took the Money Bill route to ensure that the legislation cannot be the Opposition in the Rajya Sabha.

While dissenting with the majority, Justice Chandrachud said that there was no need for passing the Aadhaar Act as a money bill.

"Passing of bill as money bill when it does not qualify as a money bill is a fraud on Constitution, violates Basic Structure," he said.

He further said the Lok Sabha Speaker was wrong in classifying Aadhaar Bill as a Money Bill as it denuded the federal structure of law making by limiting the role of Rajya Sabha in Aadhaar Bill.

Bypassing the Rajya Sabha to pass the Aadhaar Act amounted to subterfuge and the law was liable to be struck down as being violative of Article 110 of the Constitution, he ruled.

The majority verdict by Chief Justice Dipak Misra and Justices A K Sikri and A M Khanwilkar declared the Centre's flagship Aadhaar scheme as constitutionally valid but struck down some of its provisions including its linking with bank accounts, mobile phones and school admissions.

Even the opposition had vehemently opposed the Centre's move to pass Aadhaar as Money Bill in the Upper House. Congress' Jairam Ramesh had then moved the Supreme Court challenging the treatment of the Aadhaar Bill as a Money Bill. Finance Minister Arun Jaitley, who moved the Bill and piloted them in both the Houses, had turned down the Opposition argument that Parliament cannot legislate as the matter is before the Supreme Court.

What is a Money Bill?

Money Bill refers to a bill introduced in the Lok Sabha which generally covers the issue of receipt and spending of money, such as tax laws, laws governing borrowing and expenditure of the Government, prevention of black money etc. It can be introduced only in the Lok Sabha. The bill is placed in Rajya Sabha thereafter and Rajya Sabha can return the Bill with or without its recommendations.

In any case, the Bill has to be returned within a period of 14 days from the date of its receipt by Rajya Sabha. Otherwise it is deemed to have been passed by both Houses at the expiration of the said period in the form in which it was passed by Lok Sabha.

A defeat of Money bill in Lok Sabha is deemed political defeat of the government of the day. Speaker has unquestionable powers to decide if a Bill is a Money Bill or not. Rajya Sabha's dissent on a Money Bill is of no political significance, as the Lok Sabha has overriding powers on Money Bills.