An Aadhaar is primarily defined as a unique 12 digit identification number that is issued by the government of India to all the residents of India. The Aadhaar numbers and Aadhar Cards are managed by the Unique Identification Authority of India, and this Aadhar card is based on demographic and biometric data. It is the worlds largest identification system and through this identification system, individuals can often be linked with their purchases, transactions and other identity proof such as PAN cards etc. These Aadhar cards are also used for the purchase of limited quantity based items such as food from public distribution systems at subsidized prices, transport tickets and even sim cards.

According to the Benami Transactions Prohibition Act, 1988, Benami Transactions are those transactions in which property is transferred to one person for a consideration that is paid by another person.

There is a ban on Benami transactions since they have been seen to add to the black money problem in India. In such transactions, the real benefactor is not the individual in whose name the property is being purchased and such a problem was seen to have originated primarily after the implementation of the land ceiling.

India, under the Digital India Land Records Modernization Programme (launched in August 2008) has computerized 86% cases out of an about 600,000 revenue villages.

In the meanwhile, certain states have agreed to link land records with the Aadhar cards of individuals and making the same available online. If such a step comes into force it’ll be an extremely great achievement for the country since they’ll know who the owner is and in case of any fraudulent behavior, the same can be traced and prosecuted.

There have been situations where the land belongs to person A but is in the name of person B, this land is purchased by C who is unaware about the real beneficiary of the land, in such a case it is difficult to compensate C without tracing out the actual ownership. Linking aadhar card to land transactions would be a justifiable solution to all these problems. However, administratively it will be extremely difficult for the government to link every property related transaction to the Aadhar since most people who have engaged in benami transactions will not come forth for the enrollment and it will also be extremely time-consuming.  In June 2017, a fake letter regarding the linking of Aadhaar to land transactions had surfaced. The letter was regarding the “digitization of land records since 1950” and it stated that any property not linked, shall be “acted upon” in accordance with the Benami Transactions Prohibition Act.