Aadhaar Enrolment Fraud can affect national security: Karnataka High urges Centre, States to be vigilant

The Karnataka High Court has called upon the Government of India as well as the State governments to keep a close eye on instances related to Aadhaar enrolement frauds [Naresh Kumar RP vs State of Karnataka].Single-judge Justice M Nagaprasanna said that such cases are on the rise while cautioning about the impact it can have on national security. "It is prudent for the Government of India or the State Government to have a vigil on such instances of rising cases of frauds in Aadhaar enrolment," the Court said..The Court was hearing a plea moved by the Chief Executive Officer M/s Edurays India, [a company with expertise in Aadhaar enrolment] seeking to quash a case registered against it under various provisions of the Indian Penal Code. The petitioner had entered into a service provider agreement on April 1, 2015 with Utility Forms Private Limited, Mumbai (Utility) for providing services mentioned in the contract..The 2nd respondent, the Deputy Director of Unique Identification Authority of India (UIDAI) in the Ministry of Electronics and Information Technology had addressed a permission letter for onboarding Utility Forms as enrolment agency for UIDAI, particularly for the purpose of carrying out enrolment for Aadhaar in Karnataka..In terms of the agreement entered between Utility and the petitioner, it was the claim of the petitioner that the company was providing manpower resources to Utility such as enrolment operators and supervisors.On receiving complaints, it was found that the petitioner had indulged in trade of free Aadhaar kits. In this regard, an FIR came to be registered against the petitioner, Utility's representative and the person who entered into agreement with UIDAI for offences punishable under Sections 465 (forgery), 468 (forgery for the purpose of cheating), 471 (using document which person has reason to believe is forged), 420 (cheating and dishonestly inducing delivery of property) and 120B (criminal conspiracy) of the Indian Penal Code.The petitioner moved the Court seeking quashing of the FIR..The counsel appearing for the petitioner, Murthy Naik contended that the petitioner functions strictly in terms of what was agreed between Utility and himself. It was further contended that there is no substance in the allegations made particularly for the offence punishable under Section 420 of IPC. It was also submitted that the Aadhaar kits alleged to have been supplied for free were never supplied and the entire proceedings initiated against the petitioner was opposed to process of law..Additional Solicitor General Shanthi Bhushan contended that the allegation against the petitioner is not only of cheating under Section 420 of IPC but also under Sections 465, 468, 469, 471 and 120B of IPC. In terms of the scheme for empanelment of enrolment of agency, what was permitted to the enrolment agency was to enter into an agreement with the petitioner and the like, only for securing manpower and not to sublet the job of issuance of Aadhaar card, Bhushan clarified. .Bhushan added that action of enrolment agency in entering into a sub-contract with the petitioner led to grave threat to national security as Aadhaar cards were recklessly issued to many who are also from neighboring countries. .After hearing the rival submissions, the Court firstly went through the provisions of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016..After going through the facts on record, the Court observed,."In the light of the afore-extracted options given by the petitioner, what becomes unmistakably clear is that, the petitioner indulged in trade of free kits, which undoubtedly would become an offence punishable under Section 420 of IPC, as if it is seen that these options were given, it would be only with an intention to cheat. Therefore, it is a matter of trial that the petitioner should come out clean on justification of the afore- extracted notice that was issued and the collection of money that he has made under 5 options of selling the Aadhaar kit to be sold ranging from 40,000 onwards to 1,85,000 and every Aadhaar card that was being issued by Namma Kendra, a particular fee ranging from Rs.100/- to Rs.200/- was collected.".It is when the official of UIDAI went as a civilian and sought an aadhaar card from Namma Kendra that he got to know the nefarious activities of the petitioner in connivance with the enrolment agency in selling aadhaar kits and aadhaar cards, the Court further noted. .The Court, therefore, refused to quash the FIR and dismissed the petition.."Therefore, with the facts being so glaring and the offence alleged against the petitioner having such ramification, as issuance of Aadhaar card by such agencies who are not empowered can also lead to distribution of such cards against the interest of national security...... Any further observation on the merit of the matter would be prejudicial to the interest of the petitioner in his defence before the trial Court. The petitioner, in my considered view has to face trial.".[Read Judgment]