The need of the hour is to strengthen the security framework of Aadhaar by implementing state-of-the-art encryption, multi-layered authentication protocols, and stringent access controls, the Orissa High Court observed while suggesting that the central government must prioritize cyber security measures, conduct regular audits, and ensure that data protection laws are rigorously enforced.

A single bench of Justice S K Panigrahi while refusing interference in the government’s policy of Aadhaar-PAN linkage of bank accounts said “while concerns regarding data security and privacy are acknowledged, they do not outweigh the compelling need for regulatory oversight in the securities market”.

Advertisement

Adequate safeguards have been implemented to mitigate risks, and the measure remains a proportionate and reasonable restriction on privacy. Therefore, the provision does not warrant interference by this Court, Justice Panigrahi stated in an order pronounced recently.

The Single Bench disposed the petition of four-term MP Tathagata Satapathy who had knocked at the doors of the High Court challenging the decision of a private bank which had made his Savings Bank Account and Demat Account dormant on the ground that it was bereft of Aadhaar linkage.

The petitioner had contended that Aadhaar is not mandatory for banking services or transactions, as per the decision of the Supreme Court.

The petitioner submitted that he has deliberately not enrolled under Aadhaar, as it has been his consistent stance in Parliament that biometric data should not be collected from citizens unwilling to enroll under Aadhaar.

The petitioner further stated that the action of the bank in demanding the Aadhaar enrollment number to link his bank account is a clear violation of Articles 14, 19(1)(g), 21, and 300-A of the Constitution of India. Therefore, this action is liable to be quashed, he argued.

The Court however observed that the Aadhaar-PAN linkage does not guarantee absolute privacy. Still it does not amount to an unconstitutional infringement of fundamental rights. The measure is a reasonable restriction in furtherance of public interest, ensuring that financial transactions remain transparent and that the securities market is not misused for illicit purposes.

As long as adequate security measures are in place to protect Aadhaar data, the linkage requirement remains a constitutionally valid and proportionate policy aimed at strengthening the financial ecosystem, Justice Dr. Panigrahi said in the judgment.

Transparency in addressing data breaches, along with proactive steps to fortify the Aadhaar infrastructure, is essential to instill confidence in the system, stated the Court

Without these measures, the very objective of Aadhaar-PAN linkage i.e. to ensure financial transparency and curb fraud may be undermined by the risk of data breaches and privacy violations.

“While concerns regarding data security and privacy are acknowledged, they do not outweigh the compelling need for regulatory oversight in the securities market. Adequate safeguards have been implemented to mitigate risks, and the measure remains a proportionate and reasonable restriction on privacy. Therefore, the provision does not warrant interference by this Court:, Justice Dr. Panigraho concluded in the judgment.