Tathagata Satapathy Vs HDFC Bank Ltd. (Orissa High Court)
Orissa High Court held that provision mandating Aadhaar-PAN linkage for Demat accounts stands on firm constitutional and legal footing. Thus, writ petition disposed of.
Facts- The Petitioner, through this Writ Petition challenges the actions of the Opposite Parties in depriving the Petitioner of access to his Invest Right app and Demat Account, linked to HDFC Bank Savings Account. It is alleged that the bank withheld the petitioner’s funds and profits and made his accounts dormant in July 2023, citing the lack of Aadhaar linkage, despite Aadhaar not being required when the accounts were opened.
Conclusion- Held that the impugned provision mandating Aadhaar-PAN linkage for Demat accounts stands on firm constitutional and legal footing. It satisfies the triple test, serving a legitimate state interest in curbing tax evasion and ensuring financial transparency. While concerns regarding data security and privacy are acknowledged, they do not outweigh the compelling need for regulatory oversight in the securities market. Adequate safeguards have been implemented to mitigate risks, and the measure remains a proportionate and reasonable restriction on privacy. Therefore, the provision does not warrant interference by this Court. The present Writ Petition is, accordingly, disposed of.
