The observation was made by a five-judge Constitution bench headed by Chief Justice Dipak Misra which is hearing a batch of petitions challenging the constitutional validity of government's flagship Aadhaar scheme and the enabling 2016 law.
"What if someone else like a bank offered to make all your transactions for you and you give standing instructions, like for insurance payments, bill payments, car instalments etc. What is the qualitative difference?
At the fag end of the day-long hearing, Justice Chandrachud lost his cool after not getting a satisfactory reply to his query from senior advocate Shyam Divan, representing petitioners opposed to the Aadhaar scheme.
On the issue of safety and possible misuse of citizens' information, the bench said if there were norms governing collection and use of such details, then it might allay the apprehensions with regard to the issue of misuse.
"This is not a question of checks and balances, because the architecture is that of pervasive surveillance," Divan said.
The bench said that there were "multiple interfaces" between a citizen and the State such as tax, water and electricity bills etc.
"Suppose instead of Aadhaar, you are required to use a PAN card. How would that be different," the bench asked, adding that the arguments seemed to be that there was a problem with the centralisation of data.
The first problem was the centralisation of data, Divan submitted and referred to a judgement of the European Court of Human Rights (ECHR) and contended that it was one thing that a particular service provider knew your location, but the government might use the centralised data for tracking citizens.
He said it was not the case that somebody was sitting behind the screen and watching. The problem was with the "architecture of the programme" which may lead to scrutiny and profiling of citizens, he said.
"Aadhaar is premised on the assumption that we are a nation of naives. This represents a complete breakdown of trust, because the presumption is that if you don't have Aadhaar, then you are a crook," Divan said.
He said that the UIDAI violated the principle of the rule of the law and the statutory norm, laid down for collecting demographic data under the Census Act.
The Census Act provided that the collected data cannot be used for other purposes, he said.
Divan said the Centre, in its affidavit, referred to a World Bank report stating India has an estimated saving of USD 11 billion per annum by using Aadhaar.
He also maintained the World Bank report was not authentic as its chief Paul Romer recently resigned saying there was no integrity in its data.
The arguments remained inconclusive and would continue on February 6.
The apex court had on December 15 last year extended till March 31 the deadline for mandatory linking of Aadhaar with various services and welfare schemes of all ministries and departments of the Centre, states and Union territories.
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