The Aadhaar and Other Laws (Amendment) Bill, 2019 |The LexSphere Library

SECTION Section 1

Untitled Section

•THE AADHAAR AND OTHER LAWS (AMENDMENT) BILL, 2019

•A

•BILL

•to amend the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits

•and Services) Act, 2016 and further to amend the Indian Telegraph Act, 1885 and the

•Prevention of Money-laundering Act, 2002.

•BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

•PART I

•PRELIMINARY

SECTION Section 10

Untitled Section

9.After section 23 of the principal Act, the following section shall be inserted,

•namely:—

•“23A. (1) The Authority may for the discharge of its functions under this Act, or

•any rules or regulations made thereunder, by order, issue such directions from time to

•time to any entity in the Aadhaar ecosystem, as it may consider necessary.

(2)Every direction issued under sub-section (1) shall be complied with by the

•entity in the Aadhaar ecosystem to whom such direction is issued.”.

SECTION Section 11

Untitled Section

10.For section 25 of the principal Act, the following section shall be substituted,

•namely:—

•“25. (1) There shall be constituted a Fund to be called the Unique Identification

•Authority of India Fund and there shall be credited thereto—

(a)all grants, fees and charges received by the Authority under this Act; and

•Substitution of

•new section

•for section 21.

•Officers and

•other

•employees of

Authority.

•Insertion of

•new section

23A.

•Power of

•Authority to

•issue

directions.

•Substitution

•of new

•section for

SECTION Section 12

Untitled Section

•section 25.

Fund.

•Insertion of

•new section 8A.

•Offline

•verification

•of Aadhaar

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(b)all sums received by the Authority from such other sources as may be

•decided upon by the Central Government.

(2)The Fund shall be applied for meeting—

(a)the salaries and allowances payable to the Chairperson and members

•and administrative expenses including the salaries, allowances and pension

•payable to or in respect of officers and other employees of the Authority; and

(b)the expenses on objects and for purposes authorised by this Act.”.

SECTION Section 13

Untitled Section

11.In section 29 of the principal Act,—

(a)for sub-section (3), the following sub-section shall be substituted, namely:—

•“(3) No identity information available with a requesting entity or offline

•verification-seeking entity shall be—

(a)used for any purpose, other than the purposes informed in writing

•to the individual at the time of submitting any information for authentication

•or offline verification; or

(b)disclosed for any purpose, other than purposes informed in

•writing to the individual at the time of submitting any information for

•authentication or offline verification:

•Provided that the purposes under clauses ( a) and ( b) shall be in

•clear and precise language understandable to the individual.”;

(b)in sub-section (4), for the words “or core biometric information”, the words

•‘‘,demographic information or photograph”, shall be substituted.

SECTION Section 14

Untitled Section

12.In section 33 of the principal Act,—

(i)in sub-section (1),—

(a)for the words “District Judge”, the words “Judge of a High Court”

•shall be substituted;

(b)in the proviso, after the words “hearing to the Authority”, the words

•“and the concerned Aadhaar number holder” shall be inserted;

(c)after the proviso, the following proviso shall be inserted, namely:—

•“Provided further that the core biometric information shall not be

•disclosed under this sub-section.”.

•(ii) in sub-section ( 2), for the words “Joint Secretary”, the word “Secretary”

•shall be substituted.

SECTION Section 15

Untitled Section

13.After Chapter VI of the principal Act, the following Chapter shall be inserted,

•namely:—

•“CHAPTER VIA

•C

•IVIL PENALTIES

33A.(1) Where an entity in the Aadhaar ecosystem fails to comply with the

•provision of this Act, the rules or regulations made thereunder or directions issued by

•the Authority under section 23A, or fails to furnish any information, document, or

•return of report required by the Authority, such entity shall be liable to a civil penalty

•which may extend to one crore rupees for each contravention and in case of a

•continuing failure, with additional penalty which may extend to ten lakh rupees for

•every day during which the failure continues after the first contravention.

(2)The amount of any penalty imposed under this section, if not paid, may be

•recovered as if it were an arrear of land revenue.

•Amendment

•of section 29.

•Amendment

•of section 33.

•Insertion of

•new Chapter

VIA.

•Penalty for

•failure to

•comply with

•provisions of

•this Act, rules,

•regulations

•and directions.

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33B.(1) For the purposes of adjudication under section 33A and imposing a

•penalty thereunder, the Authority shall appoint an officer of the Authority, who is not

•below the rank of a Joint Secretary to the Government of India and possessing such

•qualification and experience as may be prescribed, to be an Adjudicating Officer for

•holding an inquiry in such manner as may be prescribed.

(2)No inquiry under sub-section ( 1) shall be initiated except by a complaint

•made by the Authority.

(3)While holding an inquiry, the Adjudicating Officer shall—

(a)provide the entity in the Aadhaar ecosystem against whom complaint

•is made, an opportunity of being heard;

(b)have the power to summon and enforce the attendance of any person

•acquainted with the facts and circumstances of the case to give evidence or to

•produce any document which, in the opinion of the Adjudicating Officer, may be

•useful for or relevant to the subject matter of the inquiry.

(4)If the Adjudicating Officer, on such inquiry, is satisfied that the entity in the

•Aadhaar ecosystem has failed to comply with any provision of this Act or the rules or

•regulations made thereunder or directions issued by the Authority under section 23A,

•or has failed to furnish any information, document, or return of report required by the

•Authority, the Adjudicating Officer may, by order, impose such penalty under

SECTION Section 16

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•section 33A as he thinks fit.

33C.(1) The Telecom Disputes Settlement and Appellate Tribunal established

•under section 14 of the Telecom Regulatory Authority of India Act, 1997, shall be

•Appellate Tribunal for the purposes of hearing appeals against the decision of the

•Adjudicating Officer under this Act.

(2)A person or entity in the Aadhaar ecosystem aggrieved by an order of the

•Adjudicating Officer under section 33B, may prefer an appeal to the Appellate Tribunal

•within a period of forty-five days from the date of receipt of the order appealed against,

•in such form and manner and accompanied with such fee as may be prescribed:

•Provided that the Appellate Tribunal may entertain an appeal after the expiry of

•the said period of forty-five days if it is satisfied that there was sufficient cause for not

•filing it within that period.

(3)On receipt of an appeal under sub-section (2), the Appellate Tribunal may,

•after giving the parties to the appeal an opportunity of being heard, pass such orders

•thereon as it thinks fit, confirming, modifying or setting aside the order appealed

against.

(4)The Appellate Tribunal shall send a copy of every order made by it to the

•parties to the appeal and to the Adjudicating Officer.

(5)Any appeal filed under sub-section (2) shall be dealt with by the Appellate

•Tribunal as expeditiously as possible and every endeavour shall be made by it to

•dispose of the appeal within six months from the date on which it is presented to it.

(6)The Appellate Tribunal may, for the purpose of deciding an appeal before it,

•call for the records relevant to disposing of such appeal and make such orders as it

•thinks fit.

33D.The provisions of sections 14-I to 14K (both inclusive), 16 and 17 of the

•Telecom Regulatory Authority of India Act, 1997 shall, mutatis mutandis, apply to the

•Appellate Tribunal in the discharge of its functions under this Act, as they apply to it

•in the discharge of its functions under that Act.

•Power to

adjudicate.

•Appeals to

•Appellate

Tribunal.

•24 of 1997.

•Procedure and

•powers of the

•Appellate

Tribunal.

•24 of 1997.

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33E.(1) Notwithstanding anything contained in the Code of Civil Procedure, 1908

•or in any other law for the time being in force, an appeal shall lie against any order, not

•being an interlocutory order, of the Appellate Tribunal to the Supreme Court on any

•substantial question of law arising out of such order.

(2)No appeal shall lie against any decision or order made by the Appellate

•Tribunal which the parties have consented to.

(3)Every appeal under this section shall be preferred within a period of

•forty-five days from the date of the decision or order appealed against:

•Provided that the Supreme Court may entertain an appeal after the expiry of the

•said period of forty-five days if it is satisfied that there was sufficient cause for not

•filing it within that period.

33F.No civil court shall have jurisdiction to entertain any suit or proceeding in

•respect of any matter which an Adjudicating Officer appointed under this Act or the

•Appellate Tribunal is empowered, by or under this Act to determine, and no injunction

•shall be granted by any court or other authority in respect of any action taken or to be

•taken in pursuance of any power conferred by or under this Act.”.

SECTION Section 17

Untitled Section

14.In section 38 of the principal Act, for the words “three years”, the words

•“ten years” shall be substituted.

SECTION Section 18

Untitled Section

15.In section 39 of the principal Act, for the words “three years”, the words

•“ten years” shall be substituted.

SECTION Section 19

Untitled Section

16.For section 40 of the principal Act, the following section shall be substituted,

•namely:—

•“40. Whoever,—

(a)being a requesting entity, uses the identity information of an individual

•in contravention of sub-section (2) of section 8; or

(b)being an offline verification-seeking entity, uses the identity information

•of an individual in contravention of sub-section (2) of section 8A,

•shall be punishable with imprisonment which may extend to three years or with a fine

•which may extend to ten thousand rupees or, in the case of a company, with a fine

•which may extend to one lakh rupees or with both.”.

SECTION Section 2

Untitled Section

1.(1) This Act may be called the Aadhaar and Other Laws (Amendment) Act, 2019.

(2)It shall come into force on such date as the Central Government may, by notification

•in the Official Gazette, appoint; and different dates may be appointed for different provisions

•Short title and

commencement.

•Bill No. 86 of 2019

•AS INTRODUCED IN LOK SABHA

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•of this Act and any reference in any such provision to the commencement of this Act shall

•be construed as a reference to the commencement of that provision.

•PART II

•AMENDMENTS TO THE AADHAAR (TARGETED DELIVERY OF FINANCIAL AND OTHER SUBSIDIES,

•BENEFITS AND SERVICES) ACT, 2016

SECTION Section 20

Untitled Section

17.In section 42 of the principal Act, for the words “one year”, the words

•“three years” shall be substituted.

SECTION Section 21

Untitled Section

18.In section 47 of the principal Act, in sub-section (1), the following proviso shall be

•inserted, namely:—

•“Provided that the court may, on a complaint made by an Aadhaar number

•holder or individual take cognizance of any offence punishable under section 34 or 35

•or 36 or 37 or 40 or section 41.”.

SECTION Section 22

Untitled Section

19.After section 50 of the principal Act, the following section shall be inserted,

•namely:—

•“50A. Notwithstanding anything contained in the Income-tax Act, 1961 or any

•other enactment for the time being in force relating to tax on income, profits or gains,

•the Authority shall not be liable to pay income-tax or any other tax in respect of its

•income, profits or gains.”.

SECTION Section 23

Untitled Section

20.In section 51 of the principal Act, for the words “Member, officer”, the words

•“Member or officer” shall be substituted.

•Appeal to

•Supreme Court

•of India.

•Civil court not

•to have

jurisdiction.

•Amendment

•of section 38.

•Amendment

•of section 39.

•Substitution of

•new section

•for section 40.

•Penalty for

•unauthorised

•use by

•requesting

•entity or

•offline

•verification-

•seeking entity.

•Amendment

•of section 42.

•Amendment of

SECTION Section 24

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•section 47.

•Insertion of

•new section

50A.

•43 of 1961. Exemption

•from tax on

income.

•Amendment

•of section 51.

•5 of 1908.

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SECTION Section 25

Untitled Section

21.In section 53 of the principal Act, in sub-section (2),—

(i)after clause (a), the following clause shall be inserted, namely:—

•“(aa) the purpose for which the requesting entity may be allowed by the

•Authority to perform authentication under sub-clause ( ii) of clause ( b) of

•sub-section (4) of section 4;”;

•(ii) after clause (g), the following clauses shall be inserted, namely:—

•“(ga) the qualification and experience of, and the manner of appointment

•of, the Adjudicating Officer under sub-section (1) of section 33B;

•(gb) the form, manner, and fee for an appeal to be filed under

•sub-section (2) of section 33C;”.

SECTION Section 26

Untitled Section

22.In section 54 of the principal Act, in sub-section (2),—

(i)for clause (a), the following clause shall be substituted, namely:—

•“(a) the entities or group of entities in the Aadhaar ecosystem under

SECTION Section 27

Untitled Section

•clause (aa), the biometric information under clause ( g) and the demographic

•information under clause (k), the process of collecting demographic information

•and biometric information from the individuals by enrolling agencies under

SECTION Section 28

Untitled Section

•clause (m), and the modes of offline verification of Aadhaar number holder

•under clause (pa) of section 2;”;

•(ii) after clause (b), the following clauses shall be inserted, namely:—

•“(ba) the manner of generating an alternative virtual identity under

•sub-section (4) of section 3;

•(bb) the manner in which cancellation of an Aadhaar number may be

•carried out under sub-section (2) of section 3A.”;

•(iii) after clause (c), the following clauses shall be inserted, namely:—

•“(ca) standards of privacy and security to be complied with by the

•requesting entities under sub-section (4) of section 4;

•(cb) the classification of requesting entities under sub-section ( 5) of

SECTION Section 29

Untitled Section

•section 4;”;

•(iv) after clause (

•f), the following clauses shall be inserted, namely:—

•“(fa) the alternate and viable means of identification of individual under

•the proviso to clause (b) of sub-section (2) of section 8;

•(fb) the manner of obtaining consent under clause (a) of sub-section (2),

•the manner of providing information to the individual undergoing offline

•verification under sub-section ( 3), and the obligations of offline

•verification-seeking entities under clause (c) of sub-section (4), of section 8A;”.

SECTION Section 3

Untitled Section

2.In section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies,

•Benefits and Services) Act, 2016 (hereafter in this Part referred to as the principal Act),—

(i)for clause (a), the following clause shall be substituted, namely:—

•‘(a) “Aadhaar number” means an identification number issued to an

•individual under sub-section (3) of section 3, and includes any alternative virtual

•identity generated under sub-section ( 4) of that section;’;

•(ii) after clause (a), the following clause shall be inserted, namely:—

•‘(aa) “Aadhaar ecosystem” includes enrolling agencies, Registrars,

•requesting entities, offline verification-seeking entities and any other entity or

•group of entities as may be specified by regulations;’;

•(iii) after clause (b), the following clauses shall be inserted, namely:—

•‘(ba) “Adjudicating Officer” means an Adjudicating Officer appointed

•under sub-section (1) of section 33B;

•(bb) “Appellate Tribunal” means the Appellate Tribunal referred to in

•sub-section (1) of section 33C;’;

•(iv) after clause (i), the following clause shall be inserted, namely:—

•‘(ia) “child” means a person who has not completed eighteen years of

•age;’;

(v)after clause (p), the following clauses shall be inserted, namely:—

•‘(pa) “offline verification” means the process of verifying the identity of

•the Aadhaar number holder without authentication, through such offline modes

•as may be specified by regulations;

•(pb) “offline verification-seeking entity” means any entity desirous of

•undertaking offline verification of an Aadhaar number holder;’.

SECTION Section 30

Untitled Section

23.Section 57 of the principal Act shall be omitted.

•PART III

•A

•MENDMENT TO THE INDIAN TELEGRAPH ACT, 1885

SECTION Section 31

Untitled Section

24.In section 4 of the Indian Telegraph Act, 1885, after sub-section (2), the following

•sub-sections shall be inserted, namely:—

•‘(3) Any person who is granted a license under the first proviso to

•sub-section (1) to establish, maintain or work a telegraph within any part of India, shall

•identify any person to whom it provides its services by—

•Amendment

•of section 53.

•Amendment

•of section 54.

•Omission of

SECTION Section 32

Untitled Section

•section 57.

•Amendment

•of section 4 of

•Act 13 of

SECTION Section 33

Untitled Section

1885.

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(a)authentication under the Aadhaar (Targeted Delivery of Financial and

•Other Subsidies, Benefits and Services) Act, 2016; or

(b)offline verification under the Aadhaar (Targeted Delivery of Financial

•and Other Subsidies, Benefits and Services) Act, 2016; or

(c)use of passport issued under section 4 of the Passports Act, 1967; or

(d)use of any other officially valid document or modes of identification as

•may be notified by the Central Government in this behalf.

(4)If any person who is granted a license under the first proviso to

•sub-section (1) to establish, maintain or work a telegraph within any part of India is

•using authentication under clause ( a) of sub-section ( 3) to identify any person to

•whom it provides its services, it shall make the other modes of identification under

SECTION Section 34

Untitled Section

•clauses (b) to (d) of sub-section (3) also available to such person.

(5)The use of modes of identification under sub-section (3) shall be a voluntary

•choice of the person who is sought to be identified and no person shall be denied any

•service for not having an Aadhaar number.

(6)If, for identification of a person, authentication under clause ( a) of

•sub-section (3) is used, neither his core biometric information nor the Aadhaar number

•of the person shall be stored.

(7)Nothing contained in sub-sections (3), (4) and (5) shall prevent the Central

•Government from specifyingfurther safeguards and conditions for compliance by any

•person who is granted a license under the first proviso to sub-section (1) in respect of

•identification of person to whom it provides its services.

•Explanation .—The expressions “Aadhaar number”and “core biometric

•information” shall have the same meanings as are respectively assigned to themin

SECTION Section 35

Untitled Section

•clauses (a) and ( j) of section 2 of the Aadhaar (Targeted Delivery of Financial and

•Other Subsidies, Benefits and Services) Act, 2016.’.

•PART IV

•A

•MENDMENT TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

SECTION Section 36

Untitled Section

25.In Chapter IV of the Prevention of Money-laundering Act, 2002 (hereafter in this

•Part, referred to as the principal Act), before section 12, the following section shall be

•inserted, namely:—

•‘11A. (1) Every reporting entity shall verify the identity of its clients and the

•beneficial owner, by—

(a)authentication under the Aadhaar (Targeted Delivery ofFinancial and

•Other Subsidies, Benefits and Services) Act, 2016 if the reporting entity is a

•banking company; or

(b)offline verification under the Aadhaar (Targeted Delivery of Financial

•and Other Subsidies, Benefits and Services) Act, 2016; or

(c)use of passport issued under section 4 of the Passports Act, 1967; or

(d)use of any other officially valid document or modes of identification as

•may be notified by the Central Government in this behalf:

•Provided that the Central Government may, if satisfied that a reporting entity

•other than banking company, complies with such standards of privacy and security

•under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and

•Services) Act, 2016, and it is necessary and expedient to do so, by notification, permit

•such entity to perform authentication under clause (a):

•18 of 2016.

•15 of 1967.

•18 of 2016.

•Insertion of

•new section

11A.

•15 of 2002.

•Verification of

•identity by

•reporting

entity.

•18 of 2016.

•15 of 1967.

•18 of 2016.

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•Provided further that no notification under the first proviso shall be issued

•without consultation with the Unique Identification Authority of India established

•under sub-section (1) of section 11 of the Aadhaar (Targeted Deliveryof Financial and

•Other Subsidies, Benefits and Services) Act, 2016 and the appropriate regulator.

(2)If any reporting entity performs authentication under clause ( a) of

•sub-section (1), to verify the identity of its client or the beneficial owner it shall make

•the other modes of identification under clauses (b), (c) and (d) of sub-section (1) also

•available to such client or the beneficial owner.

(3)The use of modes of identification under sub-section (1) shall be a voluntary

•choice of every client or beneficial owner who is sought to be identified and no client

•or beneficial owner shall be denied services for not having an Aadhaar number.

(4)If, for identification of a client or beneficial owner, authentication or offline

•verification under clause (a) or clause (b) of sub-section (1) is used, neither his core

•biometric information nor his Aadhaar number shall be stored.

(5)Nothing in this section shall prevent the Central Government from notifying

•additional safeguards on any reporting entity in respect of verification of the identity

•of its client or beneficial owner.

•Explanation .—The expressions “Aadhaar number” and “core biometric

•information” shall have the same meanings as are respectively assigned to them in

SECTION Section 37

Untitled Section

•clauses (a) and ( j) of section 2 of the Aadhaar (Targeted Delivery of Financial and

•Other Subsidies, Benefits and Services) Act, 2016.’.

SECTION Section 38

Untitled Section

26.In section 12 of the principal Act, in sub-section (1), clauses (c) and (d) shall be

omitted.

SECTION Section 39

Untitled Section

27.In section 73 of the principal Act, in sub-section (2), clauses (j) and (jj) shall be

omitted.

SECTION Section 4

Untitled Section

3.In section 3 of the principal Act, after sub-section ( 3), the following sub-section

•shall be inserted, namely:—

•“(4) The Aadhaar number issued to an individual under sub-section (3) shall

•be a twelve-digit identification number and any alternative virtual identity as an

•alternative to the actual Aadhaar number of an individual that shall be generated by

•the Authority in such manner as may be specified by regulations.”.

SECTION Section 40

Untitled Section

28.(1) The Aadhaar and Other Laws (Amendment) Ordinance, 2019 is hereby repealed.

(2)Notwithstanding the repeal of the said Ordinance, anything done or any action

•taken under the said Ordinance shall be deemed to have been done or taken under the

•corresponding provisions of this Act.

•Amendment

•of section 12.

•Amendment

•of section 73.

•Repeal and

savings.

•18 of 2016.

Ord.9 of

SECTION Section 41

Untitled Section

2019.

•18 of 2016.

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•STATEMENT OF OBJECTS AND REASONS

•The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and

•Services) Act, 2016 (the Aadhaar Act) was enacted to provide for good governance, efficient,

•transparent, and targeted delivery of subsidies, benefits and services, the expenditure for

•which is incurred from the Consolidated Fund of India, to individuals residing in India

•through assigning of unique identity numbers to such individuals and for matters connected

•therewith or incidental thereto.

SECTION Section 42

Untitled Section

2.On 27th July, 2018 the Committee of Experts chaired by Justice (Retd.) B. N. Srikrishna

•submitted its report "A free and fair Digital Economy: Protecting Privacy, Empowering Indians"

•regarding various issues related to data protection along with a draft Personal Data Protection

•Bill and also suggested certain amendments to the Aadhaar Act.

SECTION Section 43

Untitled Section

3.The Constitution Bench of the Supreme Court, in its judgment dated the 24th August,

•2017 in W.P. 494 of 2012 - Justice K.S. Puttaswamy (Retd.) and another vs UOI and others

•declared privacy as a fundamental right under article 21 of the Constitution. Further, the

•Supreme Court vide its judgment dated the 26th September, 2018 has upheld the constitutional

•validity of the Aadhaar Act, with certain restrictions and changes, such as obtaining consent

•of parent or guardian in case of enrolment of children, providing option to children to cancel

•their Aadhaar number on attaining the age of eighteen years, providing for informed consent

•for authentication and limiting the authentication only to purposes permitted by law.

SECTION Section 44

Untitled Section

4.With over 122 crore Aadhaar numbers having been issued and with the widespread

•use of Aadhaar as a proof of identity for various purposes by the Government of India, State

•Governments and other entities, it is essential to have a regulatory framework for the operation

•of Aadhaar. The Unique Identification Authority of India (the Authority) created under the

•Aadhaar Act, therefore, must have powers similar to that of a regulator for taking enforcement

actions.The Aadhaar Act, in its present form, does not empower the Authority to take

•enforcement action against errant entities in the Aadhaar ecosystem. This needs to be

•addressed with a view to protect privacy and also to ensure the autonomy of the Authority.

SECTION Section 45

Untitled Section

5.It is, therefore, proposed to amend the Aadhaar (Targeted Delivery of Financial and

•Other Subsidies, Benefits and Services) Act, 2016, the Indian Telegraph Act, 1885 and the

•Prevention of Money-laundering Act, 2002. The salient features of the Bill are as follows—

(a)to provide for twelve-digit Aadhaar number and its alternate numbers to be

•generated by the Authority in such manner as may be specified by regulations to

•conceal the actual Aadhaar number of an individual;

(b)to give an option to children who are Aadhaar number holders to cancel their

•Aadhaar number on attaining the age of eighteen years;

(c)to provide for voluntary use of Aadhaar number in physical or electronic

•form by authentication or offline verification or any other mode which may be notified

•by the Central Government;

(d)authentication of offline verification of Aadhaar number can be performed

•only with the informed consent of the Aadhaar number holder;

(e)prevention of denial of services for refusing to, or being unable to, undergo

•authentication;

(f)to permit the entities performing authentication only when they are compliant

•with the standards of privacy and security specified by the Authority; and the

•authentication is permitted under any law made by Parliament or the authentication is

•for such purpose, as the Central Government may, in consultation with the Authority

•and in the interest of State, prescribe;

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(g)to lay down the procedure for offline verification of an Aadhaar number

•holder;

(h)to confer power upon the Authority to give such directions as it may consider

•necessary to any entity in Aadhaar ecosystem;

(i)for establishment of Unique Identification Authority of India Fund;

(j)to enhance the restrictions on sharing of information by requesting entity

•and offline verification-seeking entity;

(k)to provide for civil penalties, its adjudication, appeal thereof and realisation

•of the sum of penalty as arrear of land revenue;

(l)to omit section 57 of the Aadhaar Act relating to use of Aadhaar by private

•entities;

(m)to allow the use of Aadhaar number for authentication on voluntary basis as

•acceptable KYC document under the Telegraph Act, 1885 and the Prevention of Money-

•laundering Act, 2002.

SECTION Section 46

Untitled Section

6.The notes on clauses explain in detail the various provisions of the Bill.

SECTION Section 47

Untitled Section

7.As Parliament was not in session and an urgent legislation was required to be made,

•the President promulgated the Aadhaar and Other Laws (Amendment) Ordinance, 2019 (Ord.

•9 of 2019) on 2nd March, 2019.

SECTION Section 48

Untitled Section

8.The Bill seeks to replace the aforesaid Ordinance.

•N

•EW DELHI;

•The 14th June, 2019. RAVI SHANKAR PRASAD

•Notes on Clauses

SECTION Section 49

Untitled Section

•Clause 1.—This clause seeks to provide for short title and commencement of the Act.

SECTION Section 5

Untitled Section

4.After section 3 of the principal Act, the following section shall be inserted,

•namely:—

•“3A. (1) The enrolling agency shall, at the time of enrolment of a child, seek the

•consent of the parent or guardian of the child, and inform the parent or guardian, the

•details specified under sub-section (2) of section 3.

(2)A child who is an Aadhaar number holder may, within a period of six months

•of attaining the eighteen years of age, make an application to the Authority for

•cancellation of his Aadhaar number, in such manner as may be specified by regulations

•and the Authority shall cancel his Aadhaar number.

•Amendment

•of section 2. 18 of 2016.

•Amendment

•of section 3.

•Insertion of

•new section

3A.

•Aadhaar

•number of

children.

•5

•10

•15

•20

•25

•30

•35

•40

•3

(3)Notwithstanding anything in section 7, a child shall not be denied any

•subsidy, benefit or service under that section in case of failure to establish his identity

•by undergoing authentication, or furnishing proof of possession of Aadhaar number,

•or in the case of a child to whom no Aadhaar number has been assigned, producing an

•application for enrolment.”.

SECTION Section 50

Untitled Section

•Clause 2.—This clause seeks to amend section 2 of the Aadhaar (Targeted Delivery of

•Financial and Other Subsidies, Benefits and Services) Act, 2016 (the Aadhaar Act) relating to

•definitions so as to provide for new definitions of certain expressions used in the Bill, which,

•inter alia, include the definitions of “Aadhaar number”, “Aadhaar ecosystem”, “Adjudication

•Officer”, “Appellate Tribunal”, “child”, “offline verification” and “offline verification seeking

•entity”.

SECTION Section 51

Untitled Section

•Clause 3.—This clause seeks amend section 3 of the Aadhaar Act relating to Aadhaar

•number so as to insert a new sub-section ( 4) therein providing for “any alternative virtual

•identity generated by the Authority” within the meaning of Aadhaar number.

SECTION Section 52

Untitled Section

•Clause 4.—This clause seeks to insert a section 3A in the Aadhaar Act which provides

•for “Aadhaar number of Children”.

SECTION Section 53

Untitled Section

•Clause 5.—This clause seeks to amend section 4 of the Aadhaar Act relating to

•properties of Aadhaar number so as to substitute sub-section ( 3) thereof with five new

•sub-sections which provide for voluntary use of Aadhaar number, conditions under which

•entities can perform authentication, classification of entities into those that can use Aadhaar

•number and those that can use only alternative virtual identity, offering alternate and viable

•means of identification and condition for mandatory authentication.

SECTION Section 54

Untitled Section

•Clause 6.—This clause seeks to amend section 8 of the Aadhaar Act relating to

•authentication of Aadhaar number so as to amend sub-sections ( 2) and (3) to provide for

•the requirement of obtaining the consent of the parent or guardian before authenticating the

•Aadhaar number issued to a child.

SECTION Section 55

Untitled Section

•Clause 7.—This clause seeks to insert a new section 8A in the Aadhaar Act so as to

•provide for offline verification of Aadhaar number.

SECTION Section 56

Untitled Section

•Clause 8.—This clause seeks to substitute section 21 of the Aadhaar Act relating to

•officers and other employees of Authority so as to provide for appointment of officers and

•other employees by the Authority.

SECTION Section 57

Untitled Section

•Clause 9.—This clause seeks to insert a new section 23A to the Aadhaar Act relating

•to power of Authority to issue directions. It provides that the Authority may issue directions

•to the entities in the Aadhaar ecosystem for the discharge of its functions under the Act.

SECTION Section 58

Untitled Section

•Clause 10.—This clause seeks to substitute section 25 of the Aadhaar Act to provide

•for constitution of a Unique Identification Authority of India Fund.

SECTION Section 59

Untitled Section

•Clause 11.—This clause seeks to amend section 29 of the Aadhaar Act relating to

•restriction on sharing information. It substitutes sub-sections ( 3) and ( 4) thereof so as to

•provide that identity information is not used for any other purpose.

SECTION Section 6

Untitled Section

5.In section 4 of the principal Act, for sub-section ( 3), the following sub-sections

•shall be substituted, namely:—

•“(3) Every Aadhaar number holder to establish his identity, may voluntarily use

•his Aadhaar number in physical or electronic form by way of authentication or offline

•verification, or in such other form as may be notified, in such manner as may be

•specified by regulations.

Explanation.—For the purposes of this section, voluntary use of the Aadhaar

•number by way of authentication means the use of such Aadhaar number only with

•the informed consent of the Aadhaar number holder.

(4)An entity may be allowed to perform authentication, if the Authority is

•satisfied that the requesting entity is—

(a)compliant with such standards of privacy and security as may be

•specified by regulations; and

(b)(i) permitted to offer authentication services under the provisions of

•any other law made by Parliament; or

•(ii) seeking authentication for such purpose, as the Central Government

•in consultation with the Authority, and in the interest of State, may prescribe.

(5)The Authority may, by regulations, decide whether a requesting entity shall

•be permitted the use of the actual Aadhaar number during authentication or only an

•alternative virtual identity.

(6)Every requesting entity to whom an authentication request is made by an

•Aadhaar number holder under sub-section ( 3) shall inform to the Aadhaar number

•holder of alternate and viable means of identification and shall not deny any service to

•him for refusing to, or being unable to, undergo authentication.

(7)Notwithstanding anything contained in the foregoing provisions, mandatory

•authentication of an Aadhaar number holder for the provision of any service shall take

•place if such authentication is required by a law made by Parliament.”.

SECTION Section 60

Untitled Section

•Clause 12.—This clause seeks to amend section 33 of the Aadhaar Act relating to

•disclosure of information in certain cases. It seeks to amend sub-sections (1) and (2) thereof,

•inter alia , to provide the individual, whose information is sought to be released, an

•opportunity of hearing and stepping up disclosure permissions to higher levels.

SECTION Section 61

Untitled Section

•Clause 13.—This clause seeks to insert a new Chapter VIA in the Aadhaar Act so as

•to provide for civil penalties. The proposed new section 33A provides for civil penalty which

•may extend to one crore rupees for each contravention, for failure to comply with provisions

•of the Act, rules, regulations and directions by any entity in the Aadhaar ecosystem. The

•proposed new section 33B provides for appointment of an Adjudicating Officer by the

•Authority and the procedure and powers of such officer. The proposed new section 33C

•provides that the Telecom Disputes Settlement and Appellate Tribunal established under

•13

•14

SECTION Section 62

Untitled Section

•section 14 of the Telecom Regulatory Authority of India Act, 1997 as the Appellate Tribunal

•under the Act for hearing of appeals against the order of the Adjudicating Officer. The

•proposed new section 33D lays down the procedures and powers of the Appellate Tribunal.

•The proposed new section 33E provides for appeal to the Supreme Court against the orders

•of the Appellate Tribunal. The proposed new section 33F provides for cases where civil

•court shall not have jurisdiction.

SECTION Section 63

Untitled Section

•Clause 14.—This clause seeks to amend section 38 of the Aadhaar Act relating to

•penalty for unauthorised access to the Central Identities Data Repository so as to enhance

•the punishment from three years to ten years.

SECTION Section 64

Untitled Section

•Clause 15.—This clause seeks to amend section 39 of the Aadhaar Act relating to

•penalty for tampering with data in Central Identities Data Repository so as to enhance the

•punishment from three years to ten years.

SECTION Section 65

Untitled Section

•Clause 16.—This clause seeks to substitute section 40 of the Aadhaar Act relating to

•penalty for unauthorised use by requesting entity so as to provide for penalty for unauthorised

•use by requesting entity and offline verification-seeking entity.

SECTION Section 66

Untitled Section

•Clause 17.—This clause seeks to amend section 42 of the Aadhaar Act relating to

•general penalty so as to enhance the punishment from one years to three years.

SECTION Section 67

Untitled Section

•Clause 18.—This clause seeks to amend section 47 of the Aadhaar Act relating to

•cognizance of offences so as to insert a new proviso therein to provide that the Aadhaar

•number holder or an individual may also file a complaint and initiate proceedings in respect

•of any offence punishable under sections 34, 35, 36, 37, 40 or 41 of the principal Act.

SECTION Section 68

Untitled Section

•Clause 19.—This clause seeks to insert a new section 50A in the Aadhaar Act relating to

•exemption from tax on income so as to exempt the Authority from tax on income, profits or gains.

SECTION Section 69

Untitled Section

•Clause 20.—This clause seeks to amend section 51 of the Aadhaar Act relating to

•delegation so as to substitute the words “Member, officer” with “Member or officer”.

SECTION Section 7

Untitled Section

6.In section 8 of the principal Act,—

(a)in sub-section (2),—

(i)in clause (a), after the words “consent of an individual”, the words “, or

•in the case of a child obtain the consent of his parent or guardian” shall be

•inserted;

•(ii) after clause (b), the following proviso shall be inserted, namely:—

•“Provided that the requesting entity shall, in case of failure to

•authenticate due to illness, injury or infirmity owing to old age or otherwise

•or any technical or other reasons, provide such alternate and viable means

•of identification of the individual, as may be specified by regulations.”;

(b)in sub-section (3), after the words “for authentication,”, the words “or in the

•case of a child, his parent or guardian” shall be inserted.

•Amendment

•of section 4.

•Amendment

•of section 8.

•5

•10

•15

•20

•25

•30

•35

•40

•4

SECTION Section 70

Untitled Section

•Clause 21.—This clause seeks to amend section 53 of the Aadhaar Act relating to

•power of Central Government to make rules so as to inserts new clauses in sub-section (2)

•providing for rules on certain matters proposed under the Bill.

SECTION Section 71

Untitled Section

•Clause 22.—This clause seeks to amend section 54 of the Aadhaar Act relating to

•power of the Authority to make regulations so as to insert new clauses in sub-section ( 2)

•providing for regulations on certain matters proposed under the Bill.

SECTION Section 72

Untitled Section

•Clause 23.—This clause seeks to omit section 57 of the Aadhaar Act relating to Act

•not to prevent use of Aadhaar number for other purposes under law.

SECTION Section 73

Untitled Section

•Clause 24.—This clause seeks to amend section 4 of the Indian Telegraph Act, 1885

•relating to exclusive privilege in respect of telegraphs, and power to grant licenses so as to

•insert therein new sub-sections (3), (4), (5), (6) and (7) to provide for the use of Aadhaar

•authentication and offline verification on voluntary basis besides other modes for

•identification, of persons who receive services from a licensee.

SECTION Section 74

Untitled Section

•Clause 25.—This clause seeks to insert a new section 11A under Chapter 4 relating to

•obligations of banking companies, financial institutions and intermediaries to the Prevention

•of Money-laundering Act, 2002 (the PML Act) so as to provide for the use of Aadhaar

•authentication and offline verification on voluntary basis besides other modes for verification

•of identity of a client or beneficial owner by a reporting entity.

SECTION Section 75

Untitled Section

•Clause 26.—This clause seeks to amend section 12 of the PML Act relating to reporting

•entity to maintain records so as to omit clauses (c) and (d) of sub-section (1) thereof.

SECTION Section 76

Untitled Section

•Clause 27.—This clause seeks to amend section 73 of the PML Act relating to power

•to make rules so as to omit clauses (j) and (jj) of sub-section (2) thereof.

SECTION Section 77

Untitled Section

•Clause 28.––This clause seeks to replace the Aadhaar and Other Laws (Amendment)

•Ordinance, 2019 and to save the action done during the said Ordianance.

•MEMORANDUM REGARDING DELEGATED LEGISLATION

SECTION Section 78

Untitled Section

•Clause 21 of the Bill seeks to amend section 53 of the Act which confers power

•upon the Central Government to make rules providing for—( i) the purpose for which the

•requesting entity may be allowed to perform authentication under sub-clause ( ii) of

SECTION Section 79

Untitled Section

•clause (b) of sub-section (6) of section 4; ( ii) the qualification and experience of, and the

•manner of appointment of, the Adjudicating Officer under sub-section (1) of section 33B;

•and (iii) the form, manner, and fee for an appeal to be filed under sub-section (2) of section

33D.

SECTION Section 8

Untitled Section

7.After section 8 of the principal Act, the following section shall be inserted,

•namely:—

•“8A. (1) Every offline verification of an Aadhaar number holder shall be performed

•in accordance with the provisions of this section.

(2)Every offline verification-seeking entity shall,—

(a)before performing offline verification, obtain the consent of an

•individual, or in the case of a child, his parent or guardian, in such manner as

•may be specified by regulations; and

(b)ensure that the demographic information or any other information

•collected from the individual for offline verification is only used for the purpose

•of such verification.

(3)An offline verification-seeking entity shall inform the individual undergoing

•offline verification, or in the case of a child, his parent or guardian the following details

•with respect to offline verification, in such manner as may be specified by regulations,

•namely:—

(a)the nature of information that may be shared upon offline verification;

(b)the uses to which the information received during offline verification

•may be put by the offline verification-seeking entity; and

(c)alternatives to submission of information requested for, if any.

(4)No offline verification-seeking entity shall—

(a)subject an Aadhaar number holder to authentication;

(b)collect, use, or store an Aadhaar number or biometric information of

•any individual for any purpose;

(c)take any action contrary to any obligation on it as may be specified by

regulations.”.

SECTION Section 80

Untitled Section

2.Clause 22 of the Bill seeks to amend section 54 the Act which confers power upon

•the Authority to make regulations providing for—(i) the entities or group of entities in the

•Aadhaar ecosystem under clause (aa), the biometric information under clause ( g) and the

•demographic information under clause (k), the process of collecting demographic information

•and biometric information from the individuals by enrolling agencies under clause (m), and

•the modes of offline verification of Aadhaar number holder under clause (pa) of section 2;

•(ii) the manner of generating alternate Aadhaar number under sub-section (4) of section 3;

•(iii) the manner in which cancellation of an Aadhaar number may be carried out under

•sub-section (2) of section 3A; (iv) standards of privacy and security to be complied with by

•the requesting entities under sub-section (4) of section 4; (v) the classification of requesting

•entities under sub-section (5) of section 4; (vi) the alternate and viable means of identification

•of individual under the proviso to clause ( b) of sub-section ( 2) of section 8; and ( vii) the

•manner of obtaining consent under clause ( a) of sub-section (2), the manner of providing

•information to the individual undergoing offline verification under sub-section (3), and the

•obligations of offline verification-seeking entities under clause ( c) of sub-section ( 4), of

SECTION Section 81

Untitled Section

•section 8A.

SECTION Section 82

Untitled Section

3.The matters in respect of which the rules or regulations may be made are matters

•of procedure and administrative detail and it is not practicable to provide for them in the Bill

itself.The delegation of legislative power is, therefore, of a normal character.

•15

•ANNEXURE

•EXTRACTS FROM THE AADHAAR (TARGETED DELIVERY OF FINANCIAL AND OTHER SUBSIDIES,

•BENEFITS AND SERVICES) ACT, 2016

•(18 OF 2016)

•* * * * *

SECTION Section 83

Untitled Section

2.In this Act, unless the context otherwise requires,—

(a)“Aadhaar number” means an identification number issued to an individual

•under sub-section (3) of section 3;

8.( 1) * * * * *

SECTION Section 84

Untitled Section

4.(1)* * * * *

(3)An Aadhaar number, in physical or electronic form subject to authentication

•and other conditions, as may be specified by regulations, may be accepted as proof of

•identity of the Aadhaar number holder for any purpose.

Explanation.—For the purposes of this sub-section, the expression “electronic

•form” shall have the same meaning as assigned to it in clause (r) of sub-section (1) of

SECTION Section 85

Untitled Section

•section 2 of the Information Technology Act, 2000.

8.( 1) * * * * *

8.( 1)* * * * *

(2)A requesting entity shall—

(a)unless otherwise provided in this Act, obtain the consent of an individual

•before collecting his identity information for the purposes of authentication in such

•manner as may be specified by regulations; and

(b)ensure that the identity information of an individual is only used for

•submission to the Central Identities Data Repository for authentication.

(3)A requesting entity shall inform, in such manner as may be specified by regulations,

•the individual submitting his identity information for authentication, the following details

•with respect to authentication, namely:—

•* * * * *

SECTION Section 86

Untitled Section

21.(1) The Authority may, with the approval of the Central Government, determine the

•number, nature and categories of other officers and employees required by the Authority in

•the discharge of its functions.

(2)The salaries and allowances payable to, and the other terms and conditions of

•service of, the chief executive officer and other officers and other employees of the Authority

•shall be such as may be specified by regulations with the approval of the Central Government.

•* * * * *

SECTION Section 87

Untitled Section

25.The fees or revenue collected by the Authority shall be credited to the Consolidated

•Fund of India.

•* * * * *

SECTION Section 88

Untitled Section

29.(1)* * * * *

(3)No identity information available with a requesting entity shall be—

Definitions.

•Properties of

•Aadhaar

number.

•21 of 2000.

•Authentication

•of Aadhaar

number.

•Officers and

•other

•employees of

Authority.

•Other fees and

revenues.

•Restriction on

•sharing

information.

•16

•17

(a)used for any purpose, other than that specified to the individual at the time

•of submitting any identity information for authentication; or

(b)disclosed further, except with the prior consent of the individual to whom

•such information relates.

(4)No Aadhaar number or core biometric information collected or created under this

•Act in respect of an Aadhaar number holder shall be published, displayed or posted publicly,

•except for the purposes as may be specified by regulations.

•* * * * *

SECTION Section 89

Untitled Section

33.( 1) Nothing contained in sub-section ( 2) or sub-section ( 5) of section 28 or

•sub-section (2) of section 29 shall apply in respect of any disclosure of information, including

•identity information or authentication records, made pursuant to an order of a court not

•inferior to that of a District Judge:

•Provided that no order by the court under this sub-section shall be made without

•giving an opportunity of hearing to the Authority.

(2)Nothing contained in sub-section (2) or sub-section (3) of section 29 shall apply

•in respect of any disclosure of information, including identity information or authentication

•records, made in the interest of national security in pursuance of a direction of an officer not

•below the rank of Joint Secretary to the Government of India specially authorised in this

•behalf by an order of the Central Government:

•Provided that every direction issued under this sub-section, shall be reviewed by an

•Oversight Committee consisting of the Cabinet Secretary and the Secretaries to the

•Government of India in the Department of Legal Affairs and the Department of Electronics

•and Information Technology, before it takes effect:

•Provided further that any direction issued under this sub-section shall be valid for a

•period of three months from the date of its issue, which may be extended for a further period

•of three months after the review by the Oversight Committee.

•* * * * *

SECTION Section 9

Untitled Section

8.For section 21 of the principal Act, the following section shall be substituted,

•namely:—

•“21. (1) The Authority shall appoint such officers and employees as may be

•required for the discharge of its functions under this Act.

(2)The salaries and allowances payable to, and the other terms and conditions

•of service of, the officers and employees of the Authority shall be such as may be

•specified by regulations.”.

SECTION Section 90

Untitled Section

38.Whoever, not being authorised by the Authority, intentionally,—

(a)accesses or secures access to the Central Identities Data Repository;

(b)downloads, copies or extracts any data from the Central Identities Data

•Repository or stored in any removable storage medium;

(c)introduces or causes to be introduced any virus or other computer

•contaminant in the Central Identities Data Repository;

(d)damages or causes to be damaged the data in the Central Identities Data

•Repository;

(e)disrupts or causes disruption of the access to the Central Identities Data

•Repository;

(f)denies or causes a denial of access to any person who is authorised to

•access the Central Identities Data Repository;

(g)reveals any information in contravention of sub-section (5) of section 28, or

•shares, uses or displays information in contravention of section 29 or assists any

•person in any of the aforementioned acts;

(h)destroys, deletes or alters any information stored in any removable storage

•media or in the Central Identities Data Repository or diminishes its value or utility or

•affects it injuriously by any means; or

•Disclosure of

•information in

•certain cases.

•Penalty for

•unauthorised

•access to the

•Central

•Identities Data

Repository.

•18

(i)steals, conceals, destroys or alters or causes any person to steal, conceal,

•shall be punishable with imprisonment for a term which may extend to three years and

•shall also be liable to a fine which shall not be less than ten lakh rupees.

Explanation.—For the purposes of this section, the expressions “computer

•contaminant”, “computer virus” and “damage” shall have the meanings respectively

•assigned to them in the Explanation to section 43 of the Information Technology

•Act, 2000, and the expression “computer source code” shall have the meaning assigned

•to it in the Explanation to section 65 of the said Act.

SECTION Section 91

Untitled Section

39.Whoever, not being authorised by the Authority, uses or tampers with the data in

•the Central Identities Data Repository or in any removable storage medium with the intent of

•modifying information relating to Aadhaar number holder or discovering any information

•thereof, shall be punishable with imprisonment for a term which may extend to three years

•and shall also be liable to a fine which may extend to ten thousand rupees.

SECTION Section 92

Untitled Section

40.Whoever, being a requesting entity, uses the identity information of an individual

•in contravention of sub-section ( 3) of section 8, shall be punishable with imprisonment

•which may extend to three years or with a fine which may extend to ten thousand rupees or,

•in the case of a company, with a fine which may extend to one lakh rupees or with both.

•* * * * *

SECTION Section 93

Untitled Section

42.Whoever commits an offence under this Act or any rules or regulations made

•thereunder for which no specific penalty is provided elsewhere than this section, shall be

•punishable with imprisonment for a term which may extend to one year or with a fine which

•may extend to twenty-five thousand rupees or, in the case of a company, with a fine which

•may extend to one lakh rupees, or with both.

•* * * * *

SECTION Section 94

Untitled Section

47.(1) No court shall take cognizance of any offence punishable under this Act, save

•on a complaint made by the Authority or any officer or person authorised by it.

•* * * * *

51.The Authority may, by general or special order in writing, delegate to any Member,

•officer of the Authority or any other person, subject to such conditions, if any, as may be

•specified in the order, such of its powers and functions under this Act (except the power

•under section 54) as it may deem necessary.

•* * * * *

SECTION Section 95

Untitled Section

54.(1)* * * * *

(2)In particular, and without prejudice to the generality of the foregoing power, such

•regulations may provide for all or any of the following matters, namely:—

(a)the biometric information under clause (g) and the demographic information

•under clause (k), and the process of collecting demographic information and biometric

•information from the individuals by enrolling agencies under clause (m) of section 2;

•* * * * *

SECTION Section 96

Untitled Section

57.Nothing contained in this Act shall prevent the use of Aadhaar number for

•establishing the identity of an individual for any purpose, whether by the State or anybody

•corporate or person, pursuant to any law, for the time being in force, or any contract to this

•effect:

•Provided that the use of Aadhaar number under this section shall be subject to the

•procedure and obligations under section 8 and Chapter VI.

•* * * * *

•21 of 2000.

•Penalty for

•tampering

•with data in

•Central

•Identities

•Data

Repository.

•Penalty for

•unauthorised

•use by

•requesting

entity.

•General

penalty.

•Cognizance of

offences.

Delegation.

•Power of

•Authority to

•make

regulations.

•Act not to

•prevent use of

•Aadhaar

•number for

•other purposes

•under law.

•19

•EXRACTS FROM THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

•(15 OF 2003)

•* * * * *

SECTION Section 97

Untitled Section

•CHAPTER IV

•OBLIGATIONS OF BANKING COMPANIES, FINANCIAL INSTITUTIONS AND INTERMEDIARIES

SECTION Section 98

Untitled Section

12.(1) Every reporting entity shall—

•* * * * *

(c)verify the identity of its clients in such manner and subject to such conditions,

•as may be prescribed;

(d)identify the beneficial owner, if any, of such of its clients, as may be prescribed;

•* * * * *

SECTION Section 99

Untitled Section

73.(1)* * * * *

(2)In particular, and without prejudice to the generality of the foregoing power, such

•rules may provide for all or any of the following matters, namely:—

•* * * * *

(j)the manner and the conditions in which identity of clients shall be verified by

•the reporting entities under clause (c) of sub-section (1) of section 12;

•(jj) the manner of identifying beneficial owner, if any, from the clients by the

•reporting entities under clause (d) of sub-section (1) of section 12;

•* * * * *

•Reporting

•entity to

•maintain

records.

•Power to make

rules.

•LOK SABHA

•————

•A

•BILL

•to amend the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and

•Services) Act, 2016 and further to amend the Indian Telegraph Act, 1885 and the

•Prevention of Money-laundering Act, 2002.

•————

•(Shri Ravi Shankar Prasad, Minister of Law and Justice; Communications and

•Electronics and Information Technology)

•MGIPMRND—594LS—18-06-2019.