Chapter 4 - Unique Identification Authority of India

Section 11. Establishment of Authority

(1) Establishment

The Central Government shall, by notification, establish an Authority to be known as the Unique Identification Authority of India (UIDAI).

The Authority shall be responsible for—

• the process of enrolment;
• the process of authentication; and
• performing such other functions as are assigned under this Act.

Important Point: UIDAI is the statutory authority responsible for implementing and administering the Aadhaar system.

(2) Body Corporate

The Authority shall be a body corporate having—

• perpetual succession;
• a common seal;
• power to acquire, hold and dispose of movable and immovable property;
• power to enter into contracts; and
• power to sue and be sued in its own name.

Important Point: UIDAI is a separate legal entity with perpetual succession and an independent legal identity.

(3) Head Office

The head office of the Authority shall be situated in New Delhi.

(4) Other Offices

The Authority may, with the prior approval of the Central Government, establish offices at other places in India.

Section 12. Composition of Authority

The Authority shall consist of—

• a Chairperson, appointed on either a part-time or full-time basis;
• two part-time Members; and
• the Chief Executive Officer (CEO), who shall act as the Member-Secretary.

All appointments shall be made by the Central Government.

Important Point: The CEO is an ex officio Member-Secretary of the Authority.

Section 13. Qualifications for appointment of Chairperson and Members of Authority

The Chairperson and Members shall be persons of—

• ability;
• integrity; and
• having at least ten years' experience and knowledge in one or more of the following fields—

Eligible Fields

• Technology
• Governance
• Law
• Development
• Economics
• Finance
• Management
• Public Affairs
• Administration

Important Point: A minimum of ten years' experience in the specified fields is mandatory for appointment.

Section 14. Term of office and other conditions of service of Chairperson and Members

(1) Term of Office

The Chairperson and every Member shall—

• hold office for three years from the date they assume office; and
• be eligible for re-appointment.

Proviso

No person shall continue as Chairperson or Member after attaining the age of sixty-five years.

Important Point: Maximum age limit is 65 years, irrespective of the tenure.

(2) Oath of Office and Secrecy

Before entering office, every Chairperson and Member shall make and subscribe—

• an oath of office; and
• an oath of secrecy

in the prescribed form and before the prescribed authority.

(3) Resignation or Removal

The Chairperson or a Member may—

(a) Relinquish office by giving a written notice of not less than thirty days to the Central Government.

(b) Be removed from office in accordance with Section 15.

(4) Salary and Service Conditions

The—

• salaries;
• allowances; and
• other conditions of service

of the Chairperson and Members, including remuneration of part-time Members, shall be as prescribed.

Section 15. Removal of Chairperson and Members

(1) Grounds for Removal

The Central Government may remove the Chairperson or a Member if he or she—

(a) Has been adjudged insolvent.

(b) Has become physically or mentally incapable of performing duties.

(c) Has been convicted of an offence involving moral turpitude, in the opinion of the Central Government.

(d) Has acquired any financial or other interest likely to prejudicially affect official functions.

(e) Has abused the position in a manner which renders continuation in office detrimental to the public interest.

Important Point: Removal is permissible only on the statutory grounds specified in the Act.

(2) Opportunity of Being Heard

No removal under clauses (b), (d), or (e) of sub-section (1) shall take place unless the Chairperson or Member has been given a reasonable opportunity of being heard.

Important Point: The principle of natural justice applies before removal on specified grounds.

Section 16. Restrictions on Chairperson or Members on employment after cessation of office

After ceasing to hold office for any reason, the Chairperson or a Member shall not, without the previous approval of the Central Government,—

(a) Employment with associated entities

Accept any employment in, or be connected with the management of, any organisation, company or other entity which was associated with any work done or contracted out by the Authority, directly or indirectly, during his tenure, for a period of three years from the date of cessation of office.

Proviso

This restriction shall not apply to employment under—

• the Central Government;
• a State Government;
• a local authority;
• a statutory authority; or
• a Government company as defined under the Companies Act, 2013.

Important Point: Former Chairpersons and Members cannot immediately join organisations associated with UIDAI without prior Government approval.

(b) Acting in proceedings involving the Authority

Act for or on behalf of any person or organisation in connection with any specific—

• proceeding;
• transaction;
• negotiation; or
• case,

to which the Authority is a party and in respect of which the Chairperson or Member had previously acted for or advised the Authority.

Important Point: Former office-bearers cannot represent private parties in matters connected with cases handled during their tenure.

(c) Use of confidential information

Give advice to any person using information obtained during tenure as Chairperson or Member which—

• is unavailable to the public; or
• cannot legally be made available to the public.

Important Point: Confidential information acquired during office cannot be used for private benefit after retirement.

(d) Appointment with entities having official dealings

For a period of three years from the last day in office, the Chairperson or Member shall not—

• enter into a contract of service;
• accept appointment to the Board of Directors; or
• accept employment,

with any entity with which he or she had direct and significant official dealings during the tenure.

Important Point: A three-year cooling-off period applies to entities having significant official dealings with the former office-holder.

Section 17. Functions of Chairperson

The Chairperson shall—

• preside over the meetings of the Authority; and
• without prejudice to any provision of this Act, exercise and discharge such other powers and functions of the Authority as may be prescribed.

Important Point: The Chairperson is the presiding authority over all meetings of UIDAI.

Section 18. Chief Executive Officer

(1) Appointment

There shall be a Chief Executive Officer (CEO) of the Authority.

The CEO shall—

• not be below the rank of Additional Secretary to the Government of India; and
• be appointed by the Central Government.

Important Point: The CEO must be of the rank of at least Additional Secretary to the Government of India.

(2) Duties of the Chief Executive Officer

The CEO shall be the legal representative of the Authority and shall be responsible for—

(a) The day-to-day administration of the Authority.

(b) Implementing the work programmes and decisions adopted by the Authority.

(c) Preparing proposals for the Authority's decisions and work programmes.

(d) Preparing the statement of revenue and expenditure and executing the Authority's budget.

(e) Performing such other functions and exercising such other powers as may be specified by regulations.

Important Point: The CEO is the executive head responsible for the administration and implementation of UIDAI's policies and decisions.

(3) Annual Submission to the Authority

Every year, the CEO shall submit for approval—

(a) A general report covering all activities of the Authority during the previous year.

(b) Programmes of work.

(c) Annual accounts for the previous year.

(d) Budget for the coming year.

(4) Administrative Control

The CEO shall have administrative control over the officers and employees of the Authority.

Section 19. Meetings of Authority

(1) Meetings

The Authority shall meet—

• at such times;
• at such places; and
• according to such rules of procedure, including quorum,

as may be specified by regulations.

(2) Presiding Officer

The Chairperson shall preside over every meeting.

If the Chairperson is unable to attend, the senior-most Member shall preside.

(3) Decision by Majority

Questions arising before the Authority shall be decided by a majority of votes of the Members present and voting.

In case of equality of votes, the—

• Chairperson; or
• presiding Member,

shall have a casting vote.

Important Point: The Chairperson or presiding Member has a casting vote in case of a tie.

(4) Authentication of Decisions

Every decision of the Authority shall be signed by—

• the Chairperson;
• any authorised Member; or
• the Member-Secretary authorised by the Authority.

(5) Disclosure of Interest

Where any Member, being a director of a company, has any direct or indirect pecuniary interest in any matter before the Authority—

• the Member shall disclose the nature of such interest as soon as possible;
• such disclosure shall be recorded in the proceedings; and
• the Member shall not participate in deliberation or decision on that matter.

Important Point: Members having a financial interest in a matter must disclose the interest and abstain from participating in the decision-making process.

Section 20. Vacancies, etc., not to invalidate proceedings of Authority

No act or proceeding of the Authority shall be invalid merely because of—

(a) Any vacancy in, or defect in the constitution of, the Authority.

(b) Any defect in the appointment of a person as the Chairperson or a Member of the Authority.

(c) Any irregularity in the procedure of the Authority which does not affect the merits of the case.

Important Point: Minor procedural defects or vacancies do not invalidate the decisions or proceedings of the Authority unless they affect the merits of the matter.

Section 21. Officers and other employees of Authority [1]

(1) Appointment of Officers and Employees

The Authority shall appoint such officers and employees as may be required for the discharge of its functions under this Act.

Important Point: UIDAI has the statutory power to appoint its own officers and employees for efficient administration.

(2) Service Conditions

The—

• salaries;
• allowances; and
• other terms and conditions of service

of the officers and employees of the Authority shall be such as may be specified by regulations.

Section 22. Transfer of assets, liabilities of Authority

On and from the establishment of the Authority—

(a) Transfer of Assets and Liabilities

All assets and liabilities of the Unique Identification Authority of India, established under Government Notification No. A-43011/02/2009-Admin. I dated 28 January 2009, shall stand transferred to and vest in the Authority.

Explanation

Assets shall include—

• rights and powers;
• movable and immovable properties;
• cash balances;
• deposits;
• other interests and rights;
• books of account; and
• all related documents.

Liabilities shall include—

• debts;
• liabilities; and
• obligations of every kind.

(b) Transfer of Existing Data and Contracts

All—

• enrolment data;
• authentication details;
• debts;
• obligations;
• liabilities;
• contracts; and
• matters undertaken by the earlier UIDAI,

shall be deemed to have been undertaken by the Authority constituted under this Act.

(c) Transfer of Money Due

All sums due to the earlier UIDAI shall be deemed to be due to the Authority.

(d) Continuation of Legal Proceedings

All suits and legal proceedings instituted by or against the earlier UIDAI may be continued or instituted by or against the Authority.

Important Point: Section 22 ensures complete legal and administrative continuity between the earlier executive UIDAI and the statutory UIDAI established under the Act.

Section 23. Powers and functions of Authority

(1) General Functions

The Authority shall—

• develop policies;
• develop procedures;
• establish systems for issuing Aadhaar numbers; and
• perform authentication under this Act.

(2) Specific Powers and Functions

Without prejudice to sub-section (1), the Authority may—

(a) Specify demographic and biometric information required for enrolment.

(b) Collect demographic and biometric information.

(c) Appoint entities to operate the Central Identities Data Repository (CIDR).

(d) Generate and assign Aadhaar numbers.

(e) Perform authentication.

(f) Maintain and update information in the Central Identities Data Repository.

(g) Omit or deactivate Aadhaar numbers where required.

(h) Specify the manner of use of Aadhaar numbers for—

• subsidies;
• benefits;
• services; and
• other permitted purposes.

(i) Specify conditions for appointment and revocation of—

• Registrars;
• enrolling agencies; and
• service providers.

(j) Establish, operate and maintain the Central Identities Data Repository.

(k) Share information of Aadhaar number holders in accordance with the Act.

(l) Conduct—

• inspections;
• inquiries; and
• audits

of the Central Identities Data Repository, Registrars, enrolling agencies and other agencies.

(m) Specify processes relating to—

• data management;
• security protocols; and
• technological safeguards.

(n) Specify procedures for issuing new Aadhaar numbers where necessary.

(o) Levy and collect prescribed fees or authorise collection thereof.

(p) Appoint committees to assist the Authority.

(q) Promote research and development in—

• biometrics; and
• Aadhaar-related technologies.

(r) Specify policies and practices for Registrars, enrolling agencies and service providers.

(s) Establish facilitation centres and grievance redressal mechanisms.

(t) Exercise such other powers and perform such other functions as may be prescribed.

Important Point: Section 23 is the principal provision defining the extensive statutory powers and responsibilities of UIDAI.

(3) Agreements and Appointment of Agencies

The Authority may—

(a) Enter into Memoranda of Understanding (MoUs) or agreements with—

• the Central Government;
• State Governments;
• Union Territories; or
• other agencies,

for collection, storage, security, processing of information, delivery of Aadhaar numbers or authentication.

(b) By notification—

• appoint Registrars;
• engage agencies; and
• authorise entities

to collect, store, secure, process information, perform authentication or discharge other functions under the Act.

(4) Appointment of Consultants

The Authority may engage—

• consultants;
• advisers; and
• other persons,

for efficient discharge of its functions on contractual terms.

Section 23A. Power of Authority to issue directions [2]

(1) Issuing Directions

The Authority may, by order, issue such directions as it considers necessary to any entity in the Aadhaar ecosystem for carrying out—

• the provisions of this Act;
• rules made under this Act; or
• regulations made under this Act.

Important Point: UIDAI possesses statutory regulatory powers to issue binding directions to entities within the Aadhaar ecosystem.

(2) Compliance with Directions

Every entity to whom a direction is issued under sub-section (1) shall comply with such direction.

Important Point: Compliance with directions issued by UIDAI is mandatory under the Act.

Footer Notes

[1]

Section 21 was substituted by the Aadhaar and Other Laws (Amendment) Act, 2019 (Act 14 of 2019), Section 10, with effect from 25-07-2019.

[2]

Section 23A was inserted by the Aadhaar and Other Laws (Amendment) Act, 2019 (Act 14 of 2019), Section 11, with effect from 25-07-2019.