Aadhaar metadata cannot be stored for more than three months. 2. State cannot enter into any contract with private corporations for sharing of Aadhaar data. 3. Aadhaar is mandatory for obtaining insurance products. 4. Aadhaar is mandatory for getting benefits funded out of the Consolidated Fund of India. Which of the statements given above is/are correct?
A1 and 4 only
B2 and 4 only
C3 only
D1, 2 and 3 only
Answer & Solution
Correct answer: B. 2 and 4 only
Answer: B. Statements 2 and 4 are correct.
This question is rooted in the JUSTICE K. S. PUTTASWAMY (AADHAAR) JUDGMENT (2018), in which a 5-judge Constitution Bench upheld the constitutional validity of the Aadhaar Act while reading down certain provisions.
Statement 1 is WRONG. The court directed that AADHAAR AUTHENTICATION DATA (METADATA) be retained for a MUCH SHORTER PERIOD than what the original Act allowed (which was 5 years, later 6 months in regulations). The court held metadata storage beyond SIX MONTHS was unconstitutional and SECTION 33(2) (national security exception) was struck down. The 'three months' figure stated here is incorrect — the court's reading-down ceiling was SIX MONTHS, not three.
Statement 2 is CORRECT. The Constitution Bench struck down SECTION 57 of the Aadhaar Act 2016, which had allowed PRIVATE CORPORATIONS to use Aadhaar authentication for any purpose by entering into contracts with UIDAI or the state. The court held private entities (telecom companies, banks, schools, e-commerce) cannot demand Aadhaar from individuals, and the state cannot mandate Aadhaar sharing arrangements with private parties beyond what is explicitly permitted by law and proportionality.
Statement 3 is WRONG. Aadhaar is NOT MANDATORY for OBTAINING INSURANCE PRODUCTS. Following the Puttaswamy judgment, IRDAI clarified that Aadhaar linking is voluntary for insurance policies. SEBI and various financial regulators similarly relaxed Aadhaar requirements except where mandated by law.
Statement 4 is CORRECT. Aadhaar IS MANDATORY for receiving BENEFITS, SERVICES, OR SUBSIDIES funded from the CONSOLIDATED FUND OF INDIA, under SECTION 7 of the Aadhaar Act. This is the central provision upheld by the court — Aadhaar may be required for welfare benefits, scholarships, PDS, MGNREGA wages, LPG subsidy etc., as long as alternative identification is allowed for genuine cases of non-availability.
Source: Justice K.S. Puttaswamy (Retd.) vs Union of India (Aadhaar judgment, 2018) / Aadhaar Act 2016.
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