Home >> Blog >> Sale of Personal Information by State – A Data Breach?
31 Jul 2019

Sale of Personal Information by State – A Data Breach?

In this digital era, data has become one of the most valuable assets to own. Elections have been won and international alliances have toppled because of support that could be garnered by utilizing data analytics. While heated debate surrounding data breaches by private entities baffles the world, at home, the Indian Government has monetized from sale of personal data of Individuals, apparently in the pretext of “public purposes”.

In July 2019, a parliamentary debate pertaining to “sale of data” by the State was raised because the Government had provided access to databases containing driving license and vehicle registration details to private companies and Government entities and generated revenue out of them.  The two databases of Ministry of Road Transport and Highways named Vahan and Sarathi were under discussion.  These databases contain details such as vehicle owner’s names, registration details, chasis number, engine number, and driving license related particulars of individuals.  These details amount to personal information by which an individual could be identified (“Personal Data”).

The sale of data was pursuant to a notification released by the Ministry of Road Transport and Highways in March 2019 titled “Bulk Data Sharing & Procedure[1] wherein a policy framework on sale of bulk data relating to driving license and vehicle registration was introduced.  Among other things, this writeup discusses whether such sale of Personal Data for revenue generation is acceptable in light of privacy as a fundamental right and the Data Protection Bill 2018? and whether such access constitutes data breach?


Bulk Data Sharing & Procedure Notification

The “Bulk Data Sharing & Procedure” notification by the Ministry of Road Transport and Highways states the purpose for which bulk data access would be  provided: “it is recognized that sharing this data for other purposes, in a controlled manner, can support the transport and automobile industry.  The sharing of data will also help in service improvements and wider benefits to citizens & Government. In addition, it will also benefit the country’s economy”.  As per the notification, only such entities that qualify the eligibility criteria will be provided access to bulk data.  The eligibility criteria are that an entity should be registered in India with at least 50% Indian ownership, such bulk data should be processed/stored in Servers/Data Centers in India, and the entity should have obtained security pre-audit report from CERT-In empanelled auditor.  The bulk data access would be provided for a price.  Commercial organizations could have such data for an amount of INR 3 crores and educational institutions could have them for 5 lakhs.  As per the notification, the bulk data will be provided in encrypted form with restricted access.  Such entities would be restricted from any activity that would identify individuals using such data sets.  The entities would be required to follow certain protocols for data loss prevention, access controls, audit logs, security and vulnerability.  Violation of these protocols is punishable under the Information Technology Act, 2000.

The Ministry of Road Transport and Highways has in accordance with this policy framework provided database access to 87 private companies and 32 government entities for a price of 65 crores resulting in Personal Data of all individuals being accessible to them.  The Data Principal (the individual whose information is in the database) has no knowledge or control over any use or misuse of his/her information. 

In any data protection framework worldwide, the Data Principal’s consent should be sought stating the purpose for which data ought to be used.  It is only pursuant to Data Principal’s consent that any information can be processed.  On the contrary, providing access to Personal Data to third party private companies without any consent of the Data Principal will keep them out of effective control.  This is against the basic principles of data protection.


Proposed Legislation for Data Protection

India is on the verge of a new Data Protection Act as the bill is being placed in the Parliament.  The Data Protection Bill, 2018[2] contains certain provisions to address the above-mentioned issues.  Section 5 of the Data Protection Bill states when personal data can be processed.  Personal Data shall be allowed only for such purposes that are  clear, specific, and lawful.  Section 5 is extracted below:

  1. Purpose limitation— (1) Personal data shall be processed only for purposes that are clear, specific and lawful. (2) Personal data shall be processed only for purposes specified or for any other incidental purpose that the data principal would reasonably expect the personal data to be used for, having regard to the specified purposes, and the context and circumstances in which the personal data was collected.

Moreover, the relevant enactment regulating driving license and vehicle registration i.e. Motor Vehicle Act does not explicitly permit the State to sell or provide third parties access to Personal Data for generation of revenue.  Therefore, there is no clear, specific, or lawful indication of such access in the enactment.  The question arises whether access to bulk Personal Data can be interpreted as an “incidental purpose” that “data principal would reasonably expect”.  The data principal has provided this information only for the purpose of grant of motor vehicle license and vehicle registration.  The Data Principal ought not have expected his/her data to be sold by the Government.

Section 13 of the Data Protection Bill is also of relevance here because it authorizes the State to process Personal Data for provision of services, benefit or issuance of certification, licenses or permits.  Section 13 is extracted below:

Section 13 – Processing of personal data for functions of the State. — Personal data may be processed if such processing is necessary for excise of the functions of the State authorised by law for: (a) the provision of any service or benefit to the data principal from the State. (b) the issuance of any certification, license, or permit for any action or activity of the data principal of the State.

By this section, the State is authorized to use Personal Data for grant of license or permits or to provide any benefit or service.  However, whether the State is authorized to give access to Personal Data to third party private companies is unclear.

Section 17 of the Data Protection Bill tries to shed some light on this anomaly.  The section states that Personal Data may be processed for “reasonable purposes” after considering if there is any public interest involved in processing the same.  What constitutes reasonable purpose is yet to be specified by the Data Protection Authority to be constituted.  Section 17 is extracted hereunder:

  1. Processing of data for reasonable purposes. —

(1) In addition to the grounds for processing contained in section12 to section 16, personal data may be processed if such processing is necessary for such reasonable purposes as may be specified after taking into consideration—

(a) the interest of the data fiduciary in processing for that purpose;

(b) whether the data fiduciary can reasonably be expected to obtain the consent of the data principal;

(c) any public interest in processing for that purpose;

(d) the effect of the processing activity on the rights of the data principal; and

(e) the reasonable expectations of the data principal having regard to the context of the processing.

(2) For the purpose of sub-section (1), the Authority may specify reasonable purposes related to the following activities, including—

(a) prevention and detection of any unlawful activity including fraud;

(b) whistle blowing;

(c) mergers and acquisitions;

(d) network and information security;

(e) credit scoring;

(f) recovery of debt;

(g) processing of publicly available personal data;

(3) Where the Authority specifies a reasonable purpose under sub-section (1), it shall: (a) lay down such safeguards as may be appropriate to ensure the protection of the rights of data principals; and (b) determine where the provision of notice under section 8 would not apply having regard to whether such provision would substantially prejudice the relevant reasonable purpose.

Section 17, therefore, clarifies that when there is any public interest involved, the State may provide access to publicly available personal data to third parties.  This read with Section 13 indicates that State is not required to get the consent of Data Principal in order to provide services and benefits. 

Whether the State has provided access to personal data for public interest or to provide services and benefits?

The Bulk Data Processing & Procedure notification states that the purpose of providing access of bulk Personal Data is to “support the transport and automobile industry” & “help in service improvements and wider benefits to citizens & Government”.  Supporting the transport and automobile industry and improving services may qualify as public interest, whereas, mere revenue generation will not.  However, there is no clarification from the Government as to how these private companies to whom database access is being provided assist in public interest.  Further, whether all driving license and registration details related data can be classified as publicly available information is again contentious and questionable as the information provided therein is intended to be provided only to license holders & vehicle owners and is partially masked.

In the event if this Personal Data is not construed as public data or these public companies have been given access to personal data in the absence of any public interest, it would result  in personal data breach by the Government Departments where the head of Department will be held liable as per section 96 of the Data Protection Bill.

It is quite preposterous to note that on the one hand Data Protection Bill is being tabled in parliament and on the other, the Government is selling Personal Data of the general public for economic gains.  Whether it results in exploitation of personal and private data in the pretext of public interest without an individual’s consent needs to be ascertained.

Footnote:

[1]  https://parivahan.gov.in/parivahan/sites/default/files/NOTIFICATION%26ADVISORY/8March%202019.pdf

2 https://www.prsindia.org/sites/default/files/bill_files/Draft%20Personal%20Data%20Protection%20Bill%2C%202018%20Draft%20Text.pdf


Image Credits: Markus Spiske

https://unsplash.com/photos/8OyKWQgBsKQ

Related Post

Share this:
 

Leave a Reply

Your Email address will not be published. Required fields are marked *

*