The Supreme Court of India, on April 2, 2025, raised serious concerns over the Delhi Government's decision to withhold subsistence allowances from more than 5,900 verified construction workers affected by air pollution restrictions in the National Capital Region (NCR), simply because their bank accounts were not linked to Aadhaar.

The issue came up during a hearing of the ongoing case titled M.C. Mehta v. Union of India & Others, which primarily focuses on pollution control measures in Delhi and surrounding areas. A bench comprising Justice Abhay S. Oka and Justice Ujjal Bhuyan firmly questioned the legal grounds behind the government's action.

"Is there any such law that says a bank account cannot be operated without Aadhaar? What law provides this?"
— Justice Abhay Oka asked during the hearing.

In response, the Delhi Government’s Counsel admitted in open court:

"There is no such law."

Read Also:- Government Expands Aadhaar Authentication to Private Entities Under New 2025 Amendment Rules

Taking note of this, the Supreme Court directed the Delhi Government to return with a proper explanation on whether verified and eligible workers can be denied financial support solely because their bank accounts are not Aadhaar-linked. This issue will be reconsidered in the upcoming hearing.

It is important to recall that earlier, on February 28, 2025, the Supreme Court had directed all NCR states to ensure that compensation and financial relief are provided to construction workers whose livelihoods have been affected by the restrictions enforced under the Graded Response Action Plan (GRAP).

"States must ensure such compensation is paid from the labour cess funds,"
the Court had stated, reiterating its earlier order from November 24, 2021.

Read Also:- Telangana High Court Addresses Alleged Aadhaar-Based Denial of Treatment at State Hospital

During the hearing, the Delhi Government submitted an affidavit through the Special Secretary of the Delhi Environment Department. The document revealed that:

• The Delhi Building and Other Construction Workers Welfare (DBOCWW) Board, in its meeting held on December 3, 2024, approved a one-time subsistence allowance of ₹8,000 per eligible worker.
• As of now, the Board has disbursed ₹74.61 crore to 93,272 workers.

However, the affidavit also made it clear that only Aadhaar-seeded bank accounts received the allowance, which resulted in 5,907 eligible workers being left out.

To address the issue, the Delhi Government claims it made several efforts to contact the uncredited workers:

• SMS and IVR calls were sent on multiple occasions, requesting the workers to link their bank accounts with Aadhaar.
• Despite repeated reminders and follow-ups, these 5,907 workers still remain unpaid as of March 25, 2025.

The affidavit further described how the government verified the identity and wage loss of affected workers:

15 government departments and construction agencies were asked to submit lists of impacted workers.

• 6 departments replied stating no workers were affected.
• The remaining 9 departments were contacted again, but no additional information was received.

Read Also:- Karnataka High Court Permits ED to Access Aadhaar Data in PMLA Probe

District Labour Officers were tasked with collecting data through registered contractors and establishments. Based on this, 505 workers were verified and granted allowances.

Letters were also sent to 36 trade unions.

• Only 3 unions responded, giving details of 82 workers.
• Out of them, 14 workers were found eligible, and their payments were processed on March 25 and March 27, 2025.

The Supreme Court has asked the Centre for Holistic Development, a petitioner in the case, to respond to the Delhi Government’s affidavit in the next hearing. The Court wants to ensure that no eligible worker is left without financial assistance simply because of technicalities like Aadhaar-linking.

"Delhi Government will also address the court on the question whether verified workers can be denied amount payable on the ground that their accounts are not seeded with Aadhaar,"
the Court’s order read.

Case no. – WP (C) 13029/1985

Case Title – MC Mehta v. Union of India