The Bombay High Court has ordered Yes Bank to pay ₹50,000 in compensation to Microfibres Pvt Ltd after the bank unlawfully delayed opening the company’s account by insisting on an Aadhaar card, despite the Supreme Court’s 2018 ruling that Aadhaar is not mandatory for bank accounts.
The delay prevented the company from renting out its Mumbai property for several months, resulting in significant financial loss. The court’s decision sends a strong message to banks and private entities to comply with Supreme Court directives and respect citizens’ rights.
Court Rebukes Yes Bank for Ignoring Supreme Court Ruling
The Division Bench of Justices M.S. Sonak and Jitendra Jain found Yes Bank’s actions “wholly illegal” and contrary to the Supreme Court’s September 2018 judgment in Justice K.S. Puttaswamy v. Union of India, which struck down the requirement for Aadhaar in opening bank accounts.
Microfibres Pvt Ltd first applied for the account in January 2018 and provided alternative identification, but the bank refused to proceed without Aadhaar. The account was finally opened in January 2019, only after the petitioner approached the High Court. The bench noted that Yes Bank failed to justify its stance or respond to the compensation claim, and warned that future non-compliance by banks could result in higher damages.
Financial and Social Impact of the Delay
Due to the delay, Microfibres Pvt Ltd was unable to lease out its Nariman Point property, leading to an estimated rental income loss of ₹1.5 lakh per month. The property was intended to support the widow and unmarried daughter of the late founder-director, compounding the hardship.
The company initially sought ₹10 lakh in damages, but the court found ₹50,000 to be a fair amount under the circumstances. The judgment comes at a time of increasing public concern over Aadhaar-related issues, with a 15% rise in complaints since 2023, and as new Aadhaar-linked policies, such as IRCTC’s Tatkal ticket rule, face legal scrutiny.
The Logical Indian’s Perspective
This verdict is a timely and necessary affirmation that no private entity can override Supreme Court judgments or infringe on citizens’ rights for administrative convenience.
The judiciary’s intervention in awarding compensation is a powerful precedent for accountability and the protection of fundamental rights. As India’s digital infrastructure evolves, it is crucial that institutions respect both the letter and spirit of the law.
