There is a video interview of a dealer doing rounds @rohanduaTOI. I think you have seen it. But let me explain the modus operandi. May be it will help others to understand it.

Our first Q:
1. How does Aadhaar authentication in PDS work?
A PDS DB is a (Ration Card, Aadhaar number, Ration Eligibility). So when you give your ration card and ask for your rations, the PDS System, sends (Aadhaar, Fingerprint) to @UIDAI. If it says Yes, you get ration. @UIDAI has no control on the PDS DB. It is with PDS department.
2. So what is the scam?

As per the article and Video, food inspectors hired people, who would change the mapping (Ration Card, Aadhaar number) in the PDS DB and route rations via biometric authentication of the "new Aadhaar number". Then they will change it back to old #.
3. So when the actual beneficiary walks in, she is perplexed, because system says, she has already authenticated and got rations and blames her *for lying*. So What is the @UIDAI's fault in this, you ask? How can it stop such thievery? Interesting question, is not it?
4. Three problems.
(a) It invented automated seeding via DSDV and RASF as tools to seed w/o beneficiary access.
(b) It invented consent-less coercion.
(c) It claims through proxies that it actually helps solve PDS via propaganda.
5. This also brings back @jackerhack's contention that High level IAS officers can't solve low level corruption (Food inspectors in this case), by inventing a solution that does surveillance on the vulnerable. The poor is not the problem, the mid level bureaucracy is .
6. The scam itself is a simple edit function on the PDS DB. This is good old fake ration card routing scam adapted to a digital version. Nothing more. PDS is always fun, as it trips everyone. It is only solvable by state will backed by people participation. Tech. alone wont do.
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