The Government of India introduced, on 4 March 2016, the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill 2016 ('the Bill') in the Lower House of the Indian Parliament (Lok Sabha) to provide statutory status to the Aadhaar programme, which seeks to assign a 12-digit unique identification number ('Aadhaar') to all Indian residents.
"We agree that there are reasonable apprehensions," Avik Biswas, Partner, and Prashant Kumar, Principal Associate at IndusLaw, told DataGuidance. "The apprehensions arise from the fact that the ambit of covered data is limited to biometric.
In which case, the only scope left for the government will be to use the residuary powers under Section 54 (2)(x) [of the Bill] to frame the rules covering the other information. Also, another option will be to contractually address this issue."
Imprisonment up to three years (which makes the offence bailable) itself, shows the cavalier approach to the issues of privacy. The Bill ought to have provided the provision for compensation to the affected party
The Bill focuses its protections only on biometric information, while other personal information such as photographs, names, addresses, demographic information is not included. In addition, the Bill introduces imprisonment of up to three years and fines of ten thousand rupees or, in the case of a company, a fine may be extended to one lakh rupees for unlawful disclosing or sharing of the core biometric information.
"Imprisonment up to three years (which makes the offence bailable) itself, shows the cavalier approach to the issues of privacy," Biswas and Kumar highlighted. "The Bill ought to have provided the provision for compensation to the affected party. The only reason we can think of is that in many instances of theft contemplated under the Bill the affected person may not even know that privacy has been compromised. However, nonetheless compensation would have been a better deterrent."
Biswas and Kumar affirmed, "On passing of the Bill, most of the payment transactions, might seek for Aadhaar number of the recipient of such payment for transactions. Though it is not mandatory under the Bill to enroll for an Aadhaar number, it is very likely to become norm of the day. Particularly, the Bill is expected to have a significant impact on the employment benefits, taxation and tax benefits, transactions in public sector organisations and financial institutions, other statutory compliances, etc. This may also lessen burden of employers (companies) who will be able to maintain a single account with respect to each employee for payment of employee benefits."
As the Aadhaar Bill was introduced to the Lok Sabha as a money bill, it does not require approval of the Upper Chamber of the Parliament, the Rajya Sabha. The Bill will be passed once the Lok Sabha approves it.
Agata Dziedzic | Privacy Analyst
"Imprisonment up to three years (which makes the offence bailable) itself, shows the cavalier approach to the issues of privacy," Biswas and Kumar highlighted. "The Bill ought to have provided the provision for compensation to the affected party. The only reason we can think of is that in many instances of theft contemplated under the Bill the affected person may not even know that privacy has been compromised. However, nonetheless compensation would have been a better deterrent."
Biswas and Kumar affirmed, "On passing of the Bill, most of the payment transactions, might seek for Aadhaar number of the recipient of such payment for transactions. Though it is not mandatory under the Bill to enroll for an Aadhaar number, it is very likely to become norm of the day. Particularly, the Bill is expected to have a significant impact on the employment benefits, taxation and tax benefits, transactions in public sector organisations and financial institutions, other statutory compliances, etc. This may also lessen burden of employers (companies) who will be able to maintain a single account with respect to each employee for payment of employee benefits."
As the Aadhaar Bill was introduced to the Lok Sabha as a money bill, it does not require approval of the Upper Chamber of the Parliament, the Rajya Sabha. The Bill will be passed once the Lok Sabha approves it.
Agata Dziedzic | Privacy Analyst