In this allied, information lavish, and data-affluent world, access to the data
by the government authorities and other organizations are fundamental but at the
same time the mechanism for seeking and securing this data should be intact and
transparent to ensure proper national security outcomes and since the nature of
such data is highly cynical, digital protection of such right of privacy is
indispensable in this dynamic digital world.
Personal Data Protection Bill, 2019 is one of the finest and revolutionary
attempts to codify the law on data security and data protection. The
bill proposes to protect
Personal Data relating to the identity,
characteristics trait, etc., and Sensitive Data such as health data, sexual
orientation, biometric data, etc. Bill provides for the formation of the Data
Protection Authority of India to prevent misuse of personal data, promote
awareness about data protection and also attribute rights to Data Principals and
impose obligations on Data Fiduciary.
The Right to Privacy is recognized by the Supreme Court of India as a
Fundamental Right[1] in Justice K. Puttaswamy case.[2]
In 2015, the Supreme
Court in Aadhaar Card case[3] held that Aadhaar Scheme of Government of India
under which it is collecting and compelling the residents of India for biometric
and other personal data which may be used for various purposes would amount to a
violation of Right to Privacy and thereafter the Supreme Court in case
of
Justice K. Puttaswamy case[4], held that the Right to Privacy is protected as
an intrinsic part of the right to life and personal liberty[5], as a part of the
rights guaranteed by Part-III of the constitution.
This Right restrains the
State from committing an intrusion upon the life and personal liberty of a
citizen and imposes an obligation on the State to take all necessary measures to
protect the privacy of the individual[6].
2. Major highlights of the Personal Data Protection Bill, 2019:
Application of provisions of the bill:
Provisions of the bill shall apply to the processing of personal data by the
State, any Indian company, any citizen of India or any person or body of persons
incorporated or created under Indian law where such data has been collected,
disclosed, shared or otherwise processed within the territory of India or by
data fiduciaries or data processors not present within the territory of India,
if such processing is— (i) in connection with any business carried on in India,
or any systematic activity of offering goods or services to data principals
within the territory of India; or (ii) in connection with any activity which
involves profiling of data principals within the territory of India[7].
The Bill shall not apply to the processing of anonymized data, other than the
anonymized data or other non-personal data to enable better targeting of
delivery of services or formulation of evidence-based policies by the Central
Government[8].
Data Protection Authority of India (DPAI):
The Bill proposes the establishment of the Data Protection Authority of India
as a body corporate. DPAI shall take steps to protect the interests of
individuals, prevent misuse of personal data, and ensure compliance with the
Bill and promote awareness about data protection[9]. DPAI also has powers to
issue directions to data fiduciaries and data processors[10] and has the power
to call for information[11] and conduct Inquiry[12]. Bill also provides for the
establishment of the Appellate Tribunal[13] and Orders of the Adjudicating
Authority can be appealed to an Appellate Tribunal[14]. Appeals against the
order of the Tribunal can be filed at the Supreme Court.
Rights of Data Principals:
The Bill figure out certain rights of data principal which includes the right
to: (i) obtain confirmation from the fiduciary on whether their personal data
has been processed[15] and the data principal shall also have the right to
access in one place the identities of the data fiduciaries with whom his
personal data has been shared by any data fiduciary together with the categories
of personal data shared with them in a specified manner[16]; (ii) Right to seek
correction or completion of inaccurate or incomplete data, or update or erase
personal data[17]; (iii) Right to data portability and have the personal data
referred to any other data fiduciary in certain circumstances[18]; and (iv)
right to be forgotten under which an individual restrict continuing disclosure
of their personal data by a fiduciary, if it is no longer necessary or consent
is withdrawn[19].
The obligation of Data Fiduciary:
The processing of personal data by the data fiduciary will subject them to
certain obligations such as:
- No personal data shall be processed by any person, except for any
specific, clear, and lawful purpose[20] and that too shall be collected only
to the extent that is necessary for processing such personal data[21]
- Every person processing personal data of a data principal shall process
such personal data fairly and reasonably and ensure the privacy of the data
principal; and for the purpose consented to by the data principal or which
is incidental to or connected with such purpose, and which the data
principal would reasonably expect that such personal data shall be used
for[22].
- Notice is required to be given to the individual/data principal for
collection or processing of personal data[23] and such data shall be
retained only for the purpose for which it is processed and shall be deleted
at the end of the processing[24].
- The personal data shall not be processed without the consent of data
principal at the commencement of its processing and the consent of the data
principal shall be valid if it is consistent with the requirements of the
other statutes like the Contract Act,[25] or Information & Technology
Act.[26]
Apart from these obligations Data Fiduciary must undertake all the necessary
measures to protect and proper processing of an individual's personal data and
maintain transparency and accountability for their actions.
-
2.5 Processing of Sensitive Personal Data & Critical Personal Data:
Data Fiduciary can process the personal data only with the consent of individual
but there are certain exceptions provided under which Personal Data can be
processed without consent such as:
- if required by the State for providing benefits to the individual;
- legal proceedings;
- to respond to a medical emergency;
- employment-related;
- necessary for reasonable purposes such as prevention of fraud, mergers,
etc.[27]
Sensitive personal data means such personal data, which may reveal, be related
to, or constitute:
- financial data;
- health data;
- official identifier;
- sex life;
- sexual orientation;
- biometric data, etc.[28]
Every data fiduciary shall process sensitive personal data of a child
in such a manner that protects the rights of and is in the best interests of,
the child. The data fiduciary shall, before processing of any personal data of a
child, verify his age and obtain the consent of his parent or guardian, in a
specified manner.
The sensitive personal data shall be stored in India only but
it may be transferred outside India for processing when explicit consent is
given by the data principal for such transfer[29]. Sensitive personal data shall
also be transferred outside India if such transfer is made pursuant to a
contract or intra-group scheme approved by the Authority or if the Central
Government, after consultation with the Authority allows such transfer or if
authority allows transfer for any specific purpose.[30]
Critical personal data means such personal data as may be notified by the
Central Government to be the critical personal data.[31] The critical personal
data shall only be processed in India[32] and maybe transferred outside India,
only where such transfer is to a person or an entity engaged in the provision of
health services or emergency services or where such transfer in the opinion of
the Central Government does not prejudicially affect the security and strategic
interest of the State.[33]
3. Personal Data Protection Bill, 2019 vis-a-vis Right to Privacy:
Personal Data Protection Bill, 2019 provides an individual with several rights
but it is highly inequitable to grant such rights at the cost of the fundamental
rights of the person. Certain provisions in the bill are required to be
interpreted in light of the fundamental right to privacy, the fundamental right
to life & liberty[34], and the right to equality[35].
Firstly, Section 35[36] of the bill is one of the most controversial provisions
which gives power to the central government to exempt any of its agency from the
application of the act and this provision act as the blanket of protection for
the central government to breach the right to privacy on various vague and
nebulous grounds.
The bill has significantly expanded the scope of exceptions
and thereby diluting the right to privacy. The report of the committee provides
that to ensure that the pillars of the data protection framework are not shaken
by a vague and nebulous national security exception[37].
For protecting the spirit of law, the government and its agencies should not be
explicitly exempted from the application of the Act and if exemptions will be
given to them, it should subject to the test of reasonability and the government
will process the personal data only when such circumstances exist which render
it necessary to do so. The exercise of such power should not be arbitrary,
artificial, and evasive and should be just and reasonable.
As far as the concept
of consent is concerned, it is not legitimate for the government or its agencies
to use the personal data of the citizen unlawfully unless it is authorized by
the law and such intrusion should be proportionate and must be backed by the
legitimate aim as the right to privacy is a fundamental right in itself and the
court is also of the opinion that it is not open to a citizen to waive any of
the fundamental rights conferred by Part-III of the constitution. These rights
have been put in the constitution not merely for the benefit of the individual
but as a matter of public policy for the benefit of the general public. It is
like an obligation imposed on the state by the constitution and no person can
relieve the state of this obligation[38].
There may exist two standpoints. First, since the Right to Privacy is being
declared by the Supreme Court as Fundamental Right and any exercise of power by
the government under section 35 of the bill should be subject to Article 14 &
Article 21 of the constitution and if government arbitrarily exercise its power
then such action will be challenged in the court of law for the violation of
Fundamental Right. Second, Inconsistency of section 35 of the bill with the
Indian Constitution[39] to the extent, it is repugnant to the fundamental right
to privacy.
Secondly, Section 91 of the Bill is also considered to be the center of the
altercation as it grants power to the government to ask any
data fiduciary or
data processor to hand over anonymized non-personal data for the purpose of
better governance, and inform its policies and deliver services to citizens[40].
Though this provision is inculcated to provide people with various government
services as well as other state functions such as growth, security, integrity,
and prevention of misuse[41] but the bill does not prescribe complete standards
for anonymization and quantum of risk involved to the personal data if any.
Also, it is very difficult to trace whether the non-personal data is used by the
government for the said purposes only or whether it is used for certain other
purposes which will affect the privacy standards, constitutional and other
rights of the person.
4. Concluding Remarks:
The bill has been influenced by the European Union's GDP Regulations[42] and
imposes high obligations and compliances on data fiduciary and also require
technology companies to garner consent from citizens before collecting and
processing their personal data. The Bill continues to require that Personal
Data[43] be processed fairly and reasonably while ensuring the privacy of the
Data Principal[44].
The Bill fails to hold the state accountable for processing personal data and
the government is provided with possible excuses to process the personal data
and at the same time holds the power to issue directions to DPAI and authority
has no option other than to follow the directions.
It is reasonable to state that the bill was a substantial attempt to eliminate
the data breach and it was also the need for an hour for the country like India
where the campaign of Digital India is led by the Prime minister himself to
propose an enactment for the digital protection of this right to privacy, but at
the same time, it is not untrue to state that the bill was a chaotic and
disorganized proposed piece of legislation in itself drafted out of the
political agenda of providing safeguard to the ruling government and its
agencies by providing explicit protection to them from the applicability of the
bill's provisions.
The bill, although incomplete and rushed, is still a step in
the right direction, and hence the most prominent step towards a comprehensive
law on personal data protection in India and thereby the most remarkable stride
for the digital protection of the fundamental right to privacy in this dynamic
world.
End-Notes:
[1] See, INDIA CONST. art 21.
[2] Justice K. Puttaswamy vs. Union of India, 4161 AIR (2017).
[3] Justice K.S. Puttaswami vs. Union of India, 3081 AIR (2015).
[4] Justice K. Puttaswamy vs. Union of India, 4161 AIR (2017).
[5] See, INDIA CONST. art 21.
[6] Justice K. Puttaswamy vs. Union of India, 4161 AIR (2017).
[7] The Draft Personal Data Protection Bill, 2019, Bill No.373, § 2 (2019),
introduced in Lok Sabha, Parliament of India by Ministry of Electronics and
Information Technology, ( May 10, 2020, 7:14 PM ), http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf (hereinafter Personal
Data Protection Bill, 2019)
[8] See, Personal Data Protection Bill, Id., § 91 (2), The Central Government
may, in consultation with the Authority, direct any data fiduciary or data
processor to provide any personal data anonymized or other non-personal data to
enable better targeting of delivery of services or formulation of evidence-based
policies by the Central Government, in such manner as may be prescribed.
[9] Personal Data Protection Bill, Supra Note 6, § 49.
[10] Personal Data Protection Bill, Supra Note 6, § 51.
[11] See, Personal Data Protection Bill, Supra Note 6, § 52.
[12] Personal Data Protection Bill, Supra Note 6, § 53.
[13] Personal Data Protection Bill, Supra Note 6, § 67.
[14] See, Personal Data Protection Bill, Supra Note 6, § 72.
[15] Personal Data Protection Bill, Supra Note 6, § 17 (1) (a).
[16] Personal Data Protection Bill, Supra Note 6, § 17 (3).
[17] Personal Data Protection Bill, Supra Note 6, § 18.
[18] See, Personal Data Protection Bill, Supra Note 6, § 19.
[19] Personal Data Protection Bill, Supra Note 6, § 20.
[20] Personal Data Protection Bill, Supra Note 6, § 4.
[21] Personal Data Protection Bill, Supra Note 6, § 6.
[22] Personal Data Protection Bill, Supra Note 6, § 5.
[23] See, Personal Data Protection Bill, Supra Note 6, § 7.
[24] Personal Data Protection Bill, Supra Note 6, § 9.
[25] See, Indian Contract Act, § 14 (1872).
[26] See, Information & Technology Act, § 7 (2000).
[27] Personal Data Protection Bill, Supra Note 6, § 12.
[28] See, Personal Data Protection Bill, Supra Note 6, § 3 (36).
[29] See, Personal Data Protection Bill, Supra Note 6, § § 33, 34.
[30] Personal Data Protection Bill, Supra Note 6, § 34.
[31] See, Personal Data Protection Bill, Supra Note 6, Explanation § 33 (2).
[32] Personal Data Protection Bill, Supra Note 6, § 33 (2).
[33] Personal Data Protection Bill, Supra Note 6, § 34 (2).
[34] See, INDIA CONST. art. 21.
[35] See, INDIA CONST. art. 14.
[36] Personal Data Protection Bill, Supra Note 6, § 35, Where the Central
Government is satisfied that it is necessary or expedient,— (i) in the interest
of sovereignty and integrity of India, the security of the State, friendly
relations with foreign States, public order; or (ii) for preventing incitement
to the commission of any cognizable offense relating to sovereignty and
integrity of India, the security of the State, friendly relations with foreign
States, public order, it may, by order, for reasons to be recorded in writing,
direct that all or any of the provisions of this Act shall not apply to any
agency of the Government in respect of the processing of such personal data, as
may be specified in the order subject to such procedure, safeguards and
oversight mechanism to be followed by the agency, as may be prescribed.
[37] See, Committee of Experts under the Chairmanship of Justice B.N. Srikrishna,
A Free and Fair Digital Economy, Protecting Privacy, Empowering Indians.
[38] Olga Tellis v. Bombay Municipal Corporation, 180 AIR, (1986)
[39] See INDIA CONST. art. 13, § 2.
[40] Personal Data Protection Bill, Supra Note 6, § 91.
[41] The Draft Personal Data Protection Bill, 2019, Bill No.373 (2019),
introduced in Lok Sabha, Parliament of India by Ministry of Electronics and
Information Technology, ( May 10, 2020, 7:14 PM ), http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf (hereinafter Personal
Data Protection Bill, 2019).
[42] The Regulation (EU) 2016/679 of the European Parliament and of the Council
of 27 April 2016 on the protection of natural persons with regard to the
processing of personal data and on the free movement of such data, and repealing
Directive 95/46/EC (General Data Protection Regulation), (May 9, 2020, 5:20
PM), https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32016R0679 (hereinafter GDPR).
[43] Protection Bill, Supra Note 6, § 3 (28).
[44] Personal Data Protection Bill, Supra Note 6, § 5 (a).
Please Drop Your Comments