After the Aayushman Bharat goes against the supreme court and asked for the Aadhaar card details for second-time treatment, Amazon and Flipkart have announced the use of Aadhaar for granting credit. Some lawyers say is in violation of the Supreme Court’s recent verdict that disallowed private entities from using the national identity platform.
Ahead of their annual flagship sale events, Flipkart and Amazon have announced the use of Aadhaar for granting Rs 60,000 as the credit to consumers under their cardless scheme. Both e-commerce giants, in a bid to push sales, are offering instant credit without credit/debit card, but with the use of the Aadhaar ID number. These instant loans are being offered to persuade users who abandon a filled e-cart – for lack of sufficient cash in hand or credit – to go ahead with their purchase.
The issue came to light after a Twitter user said he was asked for his Aadhaar card details while applying for Flipkart’s cardless credit offer.
Hey @Flipkart even after supreme Court judgement how are u demanding Aadhaar number of customers ? And doing Aadhaar verification using mobile otp ? Don’t you know Supreme court has barred private companies to use Aadhaar of citizens ? Don’t you know it’s illegal now ? pic.twitter.com/XSAyiEqvxX
— Shailendra (@I_have_to_ask) September 30, 2018
The Supreme Court delivered its judgment on petitions challenging the constitutional validity of the Aadhaar Act last month. A five-judge bench, headed by Chief Justice of India Dipak Misra and justices AK Sikri, AM Khanwilkar, DY Chandrachud and Ashok Bhushan ruled that Aadhaar will stay, but with conditions.
Lawyers that TOI spoke to said the scheme is in direct violation of the SC verdict. Former additional solicitor general of India, P Wilson, said that the SC verdict is very clear and there can be no justification for private companies asking for such details.
Ramesh Kumar, who runs the law firm Ramesh Kumar & Associates, said companies cannot ask for Aadhaar details for any scheme on their platform. “The SC verdict clearly bars the use of the Aadhaar database by private companies. Which brings up the question: Why can’t UIDAI bar access for these players?” he said. It’s technically possible for UIDAI to do that, considering that last December, it had temporarily barred Aadhaar database access for Airtel.
When contacted, a Flipkart spokesperson said that the company is committed to being fully compliant with the extant laws and judgments of the Supreme Court. An Amazon India spokesperson said complying with local regulations is a top priority for the company worldwide.