Confused about Aadhaar for rent agreements? Here's what the law says
New Delhi, Jul 23, 2025
From privacy risks to legal gaps, here's why Aadhaar isn't always accepted for rent agreements across India
Many tenants and landlords are puzzled over the requirement of Aadhaar in rent agreements. While some say they were asked for it during registration, others insist they completed the process using other ID proofs. This confusion reflects the gap between legal provisions and on-ground practices in different states.
Experts point out that Aadhaar is not legally mandatory for rent agreements. Instead, landlords and sub-registrars often accept alternative documents such as passports, voter ID or PAN cards. Concerns about data privacy and fraud have also made some wary of relying on Aadhaar alone.
Here’s what legal professionals say about why Aadhaar isn’t always used and which identity proofs are safer to avoid complications.
No law makes Aadhaar compulsory
“There is no law that makes Aadhaar mandatory for rent agreements. The Supreme Court has ruled that it is not a mandatory form of identification and has limited its mandatory use to certain government schemes only,” explained Apeksha Lodha, partner, Singhania & Co.
Keyur Gandhi, managing partner at Gandhi Law Associates, added, “Neither the Registration Act, 1908, nor any specific state rules mandate Aadhaar as a compulsory identity proof for property transactions. The UIDAI itself has consistently maintained that Aadhaar is voluntary.”
Fraud fears and why Aadhaar is avoided
Fake Aadhaar cards and privacy concerns have led landlords and registrars to prefer other IDs. “Fake Aadhaar cards have been used for renting or selling property, so landlords often prefer documents like passports or PAN, which seem more traditional for identity verification,” Lodha said.
Ashutosh Srivastava, partner at SKV Law Offices, cited a Karnataka High Court case where a forged Aadhaar card was used to transfer land. “Refusals usually trace back to verification anxiety, not an official bar on the document,” he explained.
Privacy risks and public data exposure
Aadhaar’s sensitive biometric data has raised fears of misuse. “If this data is leaked, it can be used to open bank accounts, obtain SIM cards and claim government benefits,” Lodha noted.
Ritha Ulbyre, partner at Cyril Amarchand Mangaldas, noted that in registered agreements, Aadhaar details may become part of public records. “Several instances of financial fraud have been reported in different states after registering documents using Aadhaar-based authentication,” she said.
Which documents are safer?
To avoid complications, experts recommend using other government IDs. “PAN card, voter ID, passport, or driving licence are widely accepted and don’t pose the same privacy or compliance risks as Aadhaar,” Gandhi suggested.
Srivastava advised, “Provide a combination of IDs for added security, and if Aadhaar is used, mask sensitive details to minimise misuse.”
[The Business Standard]
