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UNDERTAKING
I, Jhanvi D/O Mr. Mukesh Kumar, hereby undertake that the research paper submitted by me
is an outcome of my independent and original work. The content and conclusions of this
work is original, and it does not infringe upon any copyright, proprietary, or personal right of
any third party. The project is free from plagiarism and has not been submitted elsewhere for
publication.
The Digital Personal Data Protection Bill, 2023
INTRODUCTION
On 11 August 2023, through official Gazette the Digital Personal Data Protection Act of
India (DPDP) comes into publication as it received Presidential assent in a span of a week.
India is the largest democracy with one of the largest populations in the world. India is also
member of G20 members and 19th country among the G20 members to pass a comprehensive
personal data protection law.
The DPDP Bill was passed by the Parliament six years after Justice K.S. Puttaswamy v.
Union of India, a historic case in which the Indian Supreme Court upheld the constitutional
right to informational privacy as a fundamental right under the country's "right to life" clause.
The Indian government was urged to implement “a carefully structured regime” for the
protection of personal data by a nine-judge Supreme Court bench in this ruling. Two previous
versions of the bill were introduced in the Parliament in 2019 and 2022, and there have been
multiple rounds of expert consultations and reports as part of India's ongoing efforts to create
this regime. Here is a quick overview of the law's history.
The law as written is transformative. It has a broad scope of application, drawing on the EU's
General Data Protection Regulation (GDPR) approach to define "personal data" and
extending coverage to all companies that process personal data, regardless of size or privacy
status. The statute also has broad extraterritorial application. The DPDP imposes broad
obligations, including narrowly defined lawful grounds for processing any personal data in a
digital format, purpose limitation obligations and their corollary - a duty to erase the data
once the purpose is met, with seemingly no room for secondary uses of personal data, and a
set of rights for individuals whose personal data are collected and used, including rights to
notice, access, and erasure. 1
The law also establishes a supervisory entity, the Data Protection Board of India (Board),
which has the jurisdiction to investigate complaints and impose fines but not to adopt
guidelines or regulations.
At the same time, the legislation makes considerable exclusions for the central government
and other government bodies, with the degree of exemption determined by their function
(such as law enforcement). Other exclusions include those for most publicly available
personal data, processing for research and statistical purposes, and processing the personal
data of foreigners by companies in India pursuant a contract with a foreign company (such as
outsourcing corporations). Startups may also be excused from certain processing if the
government notifies them. The intervene also empowers the federal government to intervene.
The Act also empowers the central government to act on the Board's notification and request
access to any information from an entity processing personal data, an intermediary (as
defined by the Information Technology Act of 2000 - the "IT Act"), or the Board, as well as
to order the suspension of public access to specific information. The Central Government is
also empowered to enact a slew of "rules" (akin to regulations under US state privacy laws)
outlining how the law will be applied.
1
https://fpf.org/blog/the-digital-personal-data-protection-act-of-india-explained/
SALIENT FEATURES OF DIGITAL PERSONAL DATA PROTECTION BILL
Data Fiduciary and Data Principal
The term Data Principal refers to the person whose information is being gathered.
Children under the age of 18 will have their parents/lawful guardians as their "Data
Principals".
The entity (human, company, firm, state, etc.) that determines the "purpose and means of
processing an individual's personal data" is referred to as a data fiduciary.
"Any data by which an individual can be identified" is defined as personal data.
The term "processing" refers to "the entire cycle of operations that can be carried out in
respect of personal data.
Significant Data Fiduciary:
Significant Data Fiduciaries are people who handle a large volume of personal data. The
Central government will determine who falls into this group based on a variety of variables.
The new Bill makes considerable concessions on cross-border data transfers,
departing from the old Bill's contentious requirement of local data storage within
India's borders.
It takes a softer stance on data localisation standards and allows data flow to certain
worldwide destinations, which is likely to encourage country-to-country trade
agreements.
The bill acknowledges the data principal's right to posthumous privacy (Withdraw
Consent), which was omitted from the PDP Bill of 2019 but suggested by the Joint
Parliamentary Committee (JPC).
It discusses the appointment, compensation, and dismissal of the CEC and ECs.
Appointment Process:
The CEC and ECs shall be selected by the President based on the recommendations of a
Selection Committee.
The Prime Minister, a Union Cabinet Minister, and the Leader of the Opposition/leader of the
main opposition party in Lok Sabha will all serve on the Selection Committee.
Even if a vacancy exists on the Selection Committee, its recommendations will remain valid.
A Search Committee chaired by the Cabinet Secretary will recommend a list of candidates to
the Selection Committee.
Eligibility for the roles entails holding (or having held) a position equivalent to the Secretary
of central government
Changes in Salary and Conditions:
The CEC and ECs will have the same salary and conditions as Cabinet Secretary.
According to the 1991 Act, it was equal to the remuneration of a Supreme Court Judge.
Removal Process:
Bill keeps the constitutional provision (Article 324(5)) that allows the CEC to be dismissed,
similar to a Supreme Court Judge. However, ECs can only be removed if recommended by
the CEC.
Protection of CEC and ECs:
The bill protects CECs and ECs from legal processes connected to actions committed during
their tenure, providing such actions were carried out in the course of official duties.
The amendment sought to protect these officials from civil or criminal procedures relating to
their official duties.
SOME LOOPHOLES OF THE BILL:
Transparency and independence:
Allowing the Selection Committee's recommendations to be valid even when there is a
vacancy may result in a monopoly of ruling party members in some circumstances,
weakening the committee's diversity and independence.
Move from Judicial Benchmark to Executive Control:
Comparing the salaries of the CEC and ECs to those of the Cabinet Secretary, whose
compensation is set by the executive, raises worries about potential government influence.
Unlike the remuneration of a Supreme Court Judge, which is determined by an Act of
Parliament, this change may jeopardise the EC's financial independence
Eligibility to Civil Servants:
Restricting eligibility to those who have held a post equivalent to the Secretary of the
Government may disqualify potentially eligible candidates, reducing the ECI's diversity of
backgrounds and experience.
Concerns about Lack of Parity: The Bill keeps the constitutional clause that allows the
CEC to be dismissed like a Supreme Court Judge, whereas ECs can only be removed on the
CEC's recommendation. The absence of symmetry in removal processes may raise concerns
about fairness.