Chapter 6A - Civil Penalties

Note:

Chapter VIA was inserted by the Aadhaar and Other Laws (Amendment) Act, 2019 (Act 14 of 2019), Section 15, with effect from 25-07-2019. [1]

Section 33A. Penalty for failure to comply with provisions of this Act, rules, regulations and directions [1]

(1) Failure to Comply

Where an entity in the Aadhaar ecosystem—

• fails to comply with any provision of this Act;
• fails to comply with the rules made under this Act;
• fails to comply with the regulations made under this Act;
• fails to comply with directions issued by the Authority under Section 23A; or
• fails to furnish any information, document, return or report required by the Authority,

such entity shall be liable to a civil penalty.

Quantum of Penalty

• A penalty which may extend to ₹1 crore for each contravention.
• In the case of a continuing failure, an additional penalty which may extend to ₹10 lakh for every day during which the failure continues after the first contravention.

Important Points

• Maximum penalty for each contravention: ₹1 crore.
• Continuing default may attract an additional penalty up to ₹10 lakh per day.

(2) Recovery of Penalty

If the penalty imposed under this section is not paid, it may be recovered as if it were an arrear of land revenue.

Important Point: Civil penalties under the Act are recoverable as arrears of land revenue.

Section 33B. Power to adjudicate [1]

(1) Appointment of Adjudicating Officer

For adjudication under Section 33A, the Authority shall appoint an Adjudicating Officer who—

• shall not be below the rank of Joint Secretary to the Government of India;
• shall possess such qualifications and experience as may be prescribed; and
• shall hold an inquiry in the prescribed manner.

Important Point: Only an officer of at least the rank of Joint Secretary can act as the Adjudicating Officer.

(2) Initiation of Inquiry

No inquiry under this section shall be initiated except on a complaint made by the Authority.

(3) Powers during Inquiry

While conducting the inquiry, the Adjudicating Officer shall—

(a) Provide the concerned entity in the Aadhaar ecosystem a reasonable opportunity of being heard.

(b) Have the power to—

• summon persons;
• enforce attendance;
• receive evidence; and
• require production of documents relevant to the inquiry.

Important Point: The Adjudicating Officer possesses powers similar to those of a civil authority for conducting inquiries.

(4) Imposition of Penalty

If satisfied that the entity has violated the provisions of the Act, rules, regulations or directions, or failed to furnish required information, the Adjudicating Officer may impose the penalty provided under Section 33A.

Section 33C. Appeals to Appellate Tribunal [1]

(1) Appellate Tribunal

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) established under the Telecom Regulatory Authority of India Act, 1997 shall function as the Appellate Tribunal under this Act.

(2) Right to Appeal

Any person or entity in the Aadhaar ecosystem aggrieved by an order under Section 33B may file an appeal before the Appellate Tribunal—

• within 45 days from the date of receipt of the order;
• in the prescribed form and manner; and
• on payment of the prescribed fee.

Proviso

The Appellate Tribunal may entertain an appeal after expiry of forty-five days if sufficient cause for the delay is shown.

(3) Orders of the Tribunal

After hearing the parties, the Tribunal may—

• confirm;
• modify; or
• set aside

the order appealed against.

(4) Communication of Order

A copy of every order shall be sent to—

• the parties to the appeal; and
• the Adjudicating Officer.

(5) Expeditious Disposal

Every endeavour shall be made to dispose of the appeal within six months from the date of presentation.

(6) Power to Call for Records

The Tribunal may call for relevant records and pass appropriate orders while deciding the appeal.

Important Point: Appeals against civil penalties lie before TDSAT, with a statutory objective of disposal within six months.

Section 33D. Procedure and powers of the Appellate Tribunal [1]

The provisions of—

• Sections 14-I to 14-K (both inclusive),
• Section 16, and
• Section 17

of the Telecom Regulatory Authority of India Act, 1997 shall apply, mutatis mutandis, to the Appellate Tribunal while exercising its powers under this Act.

Important Point: The procedural framework of TDSAT under the TRAI Act applies to Aadhaar appeals.

Section 33E. Appeal to Supreme Court of India [1]

(1) Appeal

Notwithstanding anything contained in the Code of Civil Procedure, 1908 or any other law, an appeal shall lie to the Supreme Court of India against any order (other than an interlocutory order) of the Appellate Tribunal on a substantial question of law.

(2) No Appeal by Consent

No appeal shall lie where the parties have consented to the decision or order of the Appellate Tribunal.

(3) Limitation

Every appeal shall be filed within 45 days from the date of the order.

Proviso

The Supreme Court may entertain an appeal after expiry of the limitation period if sufficient cause for delay is shown.

Important Point: Only substantial questions of law can be appealed to the Supreme Court.

Section 33F. Civil court not to have jurisdiction [1]

No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which—

• the Adjudicating Officer; or
• the Appellate Tribunal,

is empowered to determine under this Act.

Further, no injunction shall be granted by any court or authority in respect of any action taken or proposed to be taken under the powers conferred by this Act.

Important Point: Civil courts have no jurisdiction over matters entrusted to the Adjudicating Officer or the Appellate Tribunal under the Aadhaar Act.

Footer Notes

[1]

Chapter VIA (Sections 33A to 33F) was inserted by the Aadhaar and Other Laws (Amendment) Act, 2019 (Act 14 of 2019), Section 15, with effect from 25-07-2019.