Q. Consider the following statements:

1. Aadhaar metadata cannot be stored for more than three months.
2. State cannot enter into any contract with private corporations for sharing of Aadhaar data.
3. Aadhaar is mandatory for obtaining insurance products.
4. Aadhaar is mandatory for getting benefits funded out of the Consolidated Fund of India.

Which of the statements given above is/are correct? (UPSC Prelims 2020)
Answer: 2 and 4 only
Notes: The correct answer is [B] 2 and 4 only. This question pertains to the landmark Supreme Court judgement in the K.S. Puttaswamy vs Union of India (2018) case regarding the constitutional validity of Aadhaar.

• Statement 1 (Incorrect): The Supreme Court struck down the provision that allowed Aadhaar metadata to be stored for five years. However, it ruled that such data cannot be stored for more than six months, not three months.
• Statement 2 (Correct): The Court struck down Section 57 of the Aadhaar Act, which allowed private entities or corporations to use Aadhaar for establishing identity. Consequently, the State cannot enter into contracts with private corporations to share Aadhaar data.
• Statement 3 (Incorrect): Based on the ruling, the IRDAI (Insurance Regulatory and Development Authority of India) clarified that Aadhaar is not mandatory for purchasing insurance policies. It is a voluntary document for KYC.
• Statement 4 (Correct): Section 7 of the Aadhaar Act was upheld. It states that Aadhaar is mandatory for availing subsidies, benefits, and services for which the expenditure is incurred from the Consolidated Fund of India.

The verdict balanced the right to privacy with the legitimate aim of the State to ensure targeted delivery of subsidies, while significantly limiting the scope of Aadhaar usage by private players.