Amazon can verify this identity using a Govt provided API. The verification can be performed with or without holder's knowledge.
There are multiple issues with this identity. The Govt is using private players to enrol the residents into this platform. There were multiple instances where people paid bribe to get multiple IDs in different name. And, the enrolment agencies with MoU with Govt can keep the data of residents, including biometric data. There is even a search facility available with around 1500 users who can search any details about 1bn+ people.
Above all, if your ID is misused, you can't approach courts. You can lodge a complaint with Govt call center. Only Govt, after investigation, can approach a court on your behalf. Other option is to approach a constitutional court directly, which is expensive.
The Supreme Court is supposed to take up this issue sometime in the near future.
https://deployer.org/