Lets step back and pose a meta question - how does a state go about providing services to its citizen if the state cannot identify citizens as its own and as unique entities. Both being necessary conditions. A well functioning state needs to be a strong (sorry libertarians) and benign (cf. Somalia and North Korea) to take care of its citizens. You can take birth, live and die in a weak state without the State ever kn…
First of all, Aadhaar is not just being used for welfare schemes. It is a giant database getting linked to everything. I wouldn't be surprised if it will soon be mandatory for booking flights. Plus much of the database has leaked. You can find thousands of Aadhar cards online just by googling. As far as preventing 'leakage'--the best approach would be to not subsidize products but to move to direct benefits transfer…
A modern state that cannot establish identity is not very useful.
(Wow, I am being downvoted).