Entities violating data protection norms to face fine up to Rs 250cr for one time

New Delhi: After many flip-flops, the government on Thursday introduced refurbished and people-centric Digital Personal Data Protection Bill 2023 in Lok Sabha. As per the Bill, there are very stringent norms for entities misusing or failing to protect digital data users as they may face a penalty of up to Rs 250 crore for each violation related to handling and processing of individuals’ data.

The Bill moots creation of Data Protection Board of India and provides protection to the Centre, the board and its members, on “action taken in good faith”. The Bill has also relaxed penalty norms compared to the proposal made in the draft DPDP that was circulated for public consultation in November 2022.

As per the provisions in the Bill, even the government has not been exempted from the violations of rules prescribed in the Bill and the government entities would also be treated like any other private entities.

The Bill also states that there would be no overwriting of sectoral/ministerial laws, which means the laws related to data privacy of different ministries would remain in existence.

“The private entities would have to deploy their nodal officers in the country for better coordination related to data protection issues. If there would be any breach, the first party would be liable to face the penalty provisions for breach of the contract,” the Bill states.

“If the board determines on conclusion of an inquiry that breach of the provisions of this Act or the rules made thereunder by a person is significant, it may, after giving the person an opportunity of being heard, impose such monetary penalty specified in the schedule,” the bill said.

Under the schedule, a maximum of Rs 250 crore and minimum Rs 50 crore can be imposed on entities violating the norms, it said.

“No suit, prosecution or other legal proceedings shall lie against the central government, the board, its chairperson and any member, officer or employee thereof for anything which is done or intended to be done in good faith under the provisions of this Act or the rules made thereunder,” the Bill said. Provisions under the Bill enable the Centre to block access to content in the interest of the general public on getting reference in writing from the board.

There are special safety provisions for children to prevent them from accessing any inappropriate information as well as advertisements which are not meant for children. Parental consent is required to open an account of children on social media. The Bill is likely to be taken for consideration and passage in the Lok Sabha on Monday—a day before the scheduled discussion on non-confidence motion.

With the numbers in favour of the government, the Bill is likely to be cleared in Lok Sabha, while getting it passed in Rajya Sabha would be a litmus test for the government.