The top court has questioned the government as to how it can suspend bank accounts merely because of failure to link it with Aadhaar number.
Hearing the case, a five-judge constitution bench headed by Chief Justice Dipak Misra also questioned certain provisions of the Prevention of Money Laundering Act (PMLA) and Rules made under it.
The petitioners had challenged Aadhaar and its enabling 2016 law before the Supreme Court.
The bench also countered the plea of UIDAI that Aadhaar was not needed to carry out surveillance of the citizens as the State had ample means to do it.
It said that technology is a very powerful enabler of mass surveillance.
The bench also referred to the testimony of Facebook CEO Mark Zuckerberg before the US Congress to press home the point that technology was a powerful enabler of mass surveillance, which could even influence elections in a major democracy like the US.>