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Aadhaar Not A Solution To Discourage Bank Scams: SC To Centre

DIVYIA ASTHANA | 0
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| April 5 , 2018 , 14:33 IST

The Supreme Court on Thursday, while examining the validity of the Aadhaar ID card scheme, said that the biometric database is not a solution to effectively discourage bank scams since there is no doubt about the identity of those committing frauds.

"The bank knows whom it is giving loan to and it is the bank officials who are hand in glove with the fraudster. Aadhaar can do little to stop it," said the 5-judge constitution bench headed by Chief Justice Dipak Misra.

Earlier, the Centre had said to the SC that in a digital era, Aadhaar card is the best way to prevent "money laundering and deliver subsidies and benefits".

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Attorney general K K Venugopal on behalf of the Centre said that the 12-digit Aadhaar ID has been approved by experts and was not open to judicial review as it was a policy decision.

Calling the Aadhaar Act a "fair and reasonable law", Venugopal said that the Aadhaar has helped in the dissipation of subsidies, prevention of black money and money laundering by linking it with bank accounts.

The Centre, has been facing heat for the recent spate of multi-crore banking scams, including Nirav Modi and Mehul Choksi scamming Punjab National Bank of Rs 12,700 crore, Rotomac owner Vikram Kothari 'wilfully' defaulting on loans worth Rs 3,695 crore and recently jewellery exporter Dwarka Das Seth International scamming Oriental Bank of Commerce of Rs 389.85 crore.