A money bill is defined by the Article 110 of the constitution, as a draft law that contains only provisions that deal with all or any of the matters listed therein. These comprise a set of 7 features broadly including items such as imposition or regulation of a tax, the regulation of the borrowing of money by the government of India, withdrawal of money from the consolidated fund of India and so forth.
Article 110 clarifies that in cases where a dispute arises over whether a bill is money bill or not, the Lok sabha speaker’s decision on the issue shall be considered final.
The Supreme court judgement in Mohd. Saeed Siddique vs State of UP (2014), a three-judge bench had ruled in context of state legislature that a speaker decision to classify a draft statute as a money bill, was not judicially reviewable.
Aadhaar was conceived as a scheme to provide to every Indian citizen a unique identity number. It was introduced without legislative backing.
In 2010, then the government in rule introduced a draft of aadhaar in Rajya sabha as an ordinary bill.
The parliamentary standing committee released a report differing with the critical aspect of the bill, particularly its treatment of concerns over privacy and protection of data security.
In March 2016, the Union government withdrew the earlier bill, and introduced, in its place, as a money bill, a new draft legislative titled the Aadhaar (Targeted delivery of Financial and other subsidies, Benefits and services) Bill, 2016.
As it is a money bill just with the simple majority in Loksabha it became a legislation.
Jairam Ramesh, a member of parliament in the Rajya sabha initiated proceeding in the supreme court, primarily question the legality behind the union government's move in introducing Aadhaar act as a money bill.
Originally a draft legislation is classified as a money bill when it provides for funds to be available to the executive to carry out specific tasks. In the case of Aadhaar act, such provisions are manifestly absent.
If the Union government passes such important bills introducing them in Lok sabha terming it a money bill negating the legislative role of Rajya sabha is a mockery of democracy.
(The Hindu Editorial "What exactly is a money bill?" dated February 27, 2017)