Legal Remedies for Wrongful Data Processing under the Digital Personal Data Protection Act, 2023

Abstract

The Digital Personal Data Protection (DPDP) Act, 2023 plays a key role in protecting individuals’ personal data in India amid rapid technological advancements. With the increasing reliance on digital platforms, wrongful processing of personal data has become a pressing issue. In a society where data is often described as the “new oil,” misuse of personal information can have serious consequences, including financial loss, identity theft, reputational damage, and emotional distress.

This article is all about legal remedies available under the DPDP Act, 2023, from a 2026 perspective. It aims to empower individuals by clearly explaining their rights, the types of wrongful data processing, and the practical legal steps they can take to safeguard their privacy and seek justice. This article awakens common citizens of India to their rights and to question the data fiduciary about their data and its use, whether it is used in the wrong way or without their consent.

In today’s digital era, it is necessary to know who is using your personal information, in what manner it is being used, and whether there is any misuse of your data, as there are many instances of cyber fraud and misuse of people’s information.

Introduction

In the digital age, personal data has become one of the most valuable assets. Every interaction—whether on social media platforms, e-commerce websites, banking systems, healthcare applications, or educational portals—involves the exchange of personal information. Individuals routinely provide details such as names, phone numbers, financial information, health records, and even biometric data, often without fully realising the extent of its use.

This widespread data sharing enhances convenience and enables personalised services; it also exposes individuals to significant risks. Unauthorised data sharing, profiling, surveillance, identity theft, and cyber fraud are increasingly common in today’s digital environment. These risks highlight the urgent need for a robust legal framework to regulate the collection, storage, and use of personal data.

For these concerns, the Government of India enacted the Digital Personal Data Protection Act, 2023. This Act seeks to establish a comprehensive regime governing data processing, balancing the need for innovation with the protection of individual privacy. It introduces key concepts such as consent-based processing, obligations of data fiduciaries, and rights of data principals.

Despite this legislation, wrongful data processing remains a persistent challenge. Wrongful processing refers to any handling of personal data that violates the provisions of the Act or infringes upon the rights of individuals. Such violations may occur due to negligence, lack of awareness, or deliberate misuse by organizations.

Wrongful Data Processing

Wrongful data processing occurs when personal data is handled in a manner that is inconsistent with the provisions of the DPDP Act. Section 4 of the Act lays down the foundational principle that personal data may only be processed for lawful purposes and in accordance with the provisions of the Act. Any deviation from this principle constitutes wrongful processing.

In simple way, wrongful processing is the collection or use of personal data without obtaining valid consent. Section 6 of the Act mandates that consent must be free, informed, specific, and unambiguous. If any person or organization collects data without meeting these requirements, it directly violates the law.

Section 5 requires that individuals must be informed about the purpose of data collection through a clear notice. Using data for purposes beyond what was initially disclosed—such as selling user data to third-party advertisers—amounts to wrongful processing. This is the violation of the law and legal remedies are available to the person whose data is wrongfully used.

Section 8(5) imposes a duty on data fiduciaries to implement reasonable security measures. Failure to do so can result in large-scale breaches affecting thousands or even millions of users.

These forms of wrongful processing demonstrate that data protection is not merely a legal issue but also a matter of ethical responsibility. The consequences of such violations extend beyond individual harm, affecting society at large in digital systems.

 

Rights of Individuals under the DPDP Act, 2023

A central feature of the DPDP Act is the recognition of individuals as “Data Principals” and the grant of specific rights to empower them. Some of the rights are given below:

  • The right to access information under Section 11 enables individuals to obtain confirmation from data fiduciaries regarding whether their data is being processed and to access details about such processing. This promotes transparency and accountability.
  • Section 12 provides the right to correction and erasure of personal data. Individuals can request correction of inaccurate or misleading information and seek deletion of data that is no longer necessary. This ensures that outdated or incorrect data does not adversely affect individuals.
  • The right to grievance redressal under Section 13 allows individuals to raise complaints with data fiduciaries. If the grievance is not adequately addressed, individuals can approach the Data Protection Board of India for further action.
  • Section 14 introduces the right to nominate, enabling individuals to appoint another person to exercise their rights in the event of death or incapacity. This provision reflects a forward-looking approach to data rights.
  • This act also recognizes the right to withdraw consent under Section 6(4). This ensures that individuals retain continuous control over their data and can stop its processing at any time.
  • All these rights ensure that individuals are not only passive subjects who cannot do anything but they can regulate their data and seek justice in case of violations.

Legal Remedies for Wrongful Data Processing

  1. Complaint and Decision Process

The DPDP Act gives people a clear way to complain if their personal data is misused. First, you should contact the company or organization that is using your data and try to solve the issue with them. This is required under Section 13.

If the company does not respond properly or you are not satisfied, you can then file a complaint with the Data Protection Board of India. The Board acts like an authority that investigates such problems.

Under Section 18 and Section 20, the Board has the power to check the complaint, ask questions, and investigate whether any rules have been broken. It ensures that organizations follow the law properly.

  1. Corrective Actions by the Board

If the Board finds that your data has been misused, it can order the company to fix the problem, stop the company from using your data wrongly, order deletion of your personal data, ask the company to correct wrong information or direct the company to improve security systems.

These powers are given under Section 21. This helps in stopping further harm to individuals.

  1. Monetary Penalties (Fines)

The Act allows heavy fines on companies that break the rules. Under Section 27 and the Schedule, penalties can go up to ₹250 crore in serious cases like data breaches or failure to protect data. These fines are important because they force companies to take data protection seriously and act responsibly.

  1. Right to Appeal

If you are not satisfied with the decision of the Data Protection Board, you can challenge it.

Under Section 29, you can appeal to the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). If needed, you can further approach the Supreme Court. This ensures fairness and proper justice.

  1. Compensation and Civil Remedies

Even though the DPDP Act mainly talks about penalties, you can still claim compensation if you suffer harm. You can file a civil case for financial loss or damage, seek compensation for mental stress or reputational harm or use your fundamental right to privacy under Article 21 of the Constitution.

Procedure for Filing Complaints

  • The process of seeking remedies under the DPDP Act is designed to be accessible to individuals. The first step involves identifying the nature of the violation, such as unauthorized data sharing or a data breach.
  • Next, individuals must gather evidence, including emails, screenshots, or official communications, to support their claims. This evidence is crucial during the inquiry process.
  • The complaint must initially be filed with the data fiduciary. If the response is unsatisfactory, the individual can approach the Data Protection Board. The Board may conduct an inquiry, request additional information, and issue appropriate orders.
  • In complex cases, seeking legal assistance may be beneficial. Lawyers specializing in data protection law can help navigate procedural requirements and strengthen the case.

Obligations of Data Fiduciaries

  • The DPDP Act imposes significant responsibilities on organizations handling personal data. Section 5 requires them to provide clear notice to individuals regarding data collection and usage.
  • Section 6 mandates obtaining valid consent before processing data. Section 8 outlines general obligations, including ensuring data accuracy, implementing security safeguards, and deleting data when no longer necessary.
  • Section 10 imposes additional obligations on Significant Data Fiduciaries, such as conducting data audits and appointing data protection officers.
  • Compliance with these obligations is essential to prevent wrongful processing and maintain trust in digital systems.

 Key Challenges in 2026

  1. Rapid Technological Growth

Technology like AI is evolving faster than laws. This creates gaps in regulation and makes enforcement difficult.

  1. Rising Cyber Frauds and Data Breaches

Cases of phishing, OTP scams, and data leaks are increasing. Weak security measures lead to misuse of personal data.

  1. Lack of Public Awareness

Many people are unaware of their data rights and complaint process. This results in underreporting of violations.

  1. Compliance Burden on SMEs

Small businesses face difficulty in meeting legal requirements. Limited resources and knowledge affect compliance.

  1. Cross-Border Data Transfer Issues

Data stored in foreign countries creates jurisdiction problems. Different international laws make the regulation complex.

  1. Weak Enforcement Mechanism

The system is still developing with limited capacity. Delays and lack of clarity reduce effectiveness.

  1. Misuse of Consent System

Users often give consent without understanding terms. This makes consent formal but not truly informed.

  1. Commercial Misuse of Data

Companies use personal data for profit and targeted ads. This increases privacy risks and ethical concerns.

  1. Difficulty in Proving Harm

It is hard for individuals to prove data misuse and damage. This makes claiming remedies difficult.

  1. Digital Divide

People in rural or less educated areas lack awareness. This makes them more vulnerable to data misuse.

Conclusion

As we know, technology has become an essential part of modern life, and the use of artificial intelligence is increasingly important. If we fail to adopt these advancements, we risk falling behind those who use them effectively, as they make work more efficient and faster. However, while using such technologies, certain precautions must be taken. Individuals should carefully read the terms and conditions before signing up on any unknown app or website and must avoid sharing sensitive personal information with untrusted sources. In case of any suspicious activity, complaints should be filed without delay.

It is not only the responsibility of the government, judiciary, or private institutions to protect personal data and prevent its misuse; individuals also have a duty to remain aware and cautious. Being mindful before sharing any personal information is essential to ensure data protection in today’s digital age.

References

  • Government of India, Digital Personal Data Protection Act, 2023.
  • Ministry of Electronics and Information Technology
  • Press Information Bureau (PIB)
  • Justice B.N. Srikrishna Committee Report (2018).
  • Reserve Bank of India – Digital Payment Security Guidelines.
  • NITI Aayog – National Strategy for AI.
  • S. Puttaswamy v. Union of India (2017)

 

Chanchal Sharma
Author: Chanchal Sharma