Yatish Yadav By

After the Supreme Court ruling that the Aadhaar card issued by the Unique Identification Authority of India (UIDAI) was not mandatory to receive essential government services, the fate of the UPA Government’s other ‘data mining’ projects through National Information Utilities (NIUs) hangs in the balance.

The recommendation to set up NIUs for five projects – Goods and Services Tax, Tax Information Network, Expenditure Information Network, National Treasury Management Agency and New Pension System -- to collect and store taxpayers’ data with private companies for centralised tax collection and registration came from UIDAI chairman Nandan Nilekani-headed Technology Advisory Group for Unique Projects (TAG-UP).

The plan was to constitute the NIUs as private companies with taxpayers’ money.

Surprisingly, they would not only collect and store one’s personal information but also levy user charges if one wants to avail its services in future. The TAG-UP in 2011 had recommended that private ownership within NIUs should be at least 51 per cent and the role of the Centre and the State government would become that of a paying customer with each having 24.5 per cent ownership in the company.

According to a secret Cabinet note, the Centre has already approved `315 crore to set up just one company to collect Goods and Services Tax data.

The move was opposed by the Department of Expenditure (DoE), saying it would be wrong if controlling stake of 51 per cent was held by private companies without any substantial investment.

The committee has informed the Centre that decentralisation of government function by introducing such information technology projects would bring efficiency in governance and increase tax collection.

The objection of the DoE was overruled by the UPA, justifying the arrangement for a larger goal of bringing independence and professional environment through private firms.