Data Privacy vs. Criminal Investigation: Judicial Balancing in the Digital Payments Ecosystem
By Abhishek Jat, Advocate Factual Background The case originated from a complaint regarding alleged financial fraud through online betting platforms, wherein the complainant claimed to have lost money via transactions conducted on multiple betting websites using PhonePe as a payment gateway. The police, investigating offences under the Information Technology Act, 2000 (Sections 66C and 66D) and the Indian Penal Code (Sections 419 and 420), issued a notice under Section 91 of the Code of Criminal Procedure, 1973 (CrPC) to PhonePe, seeking detailed information about certain merchants and users suspected of facilitating illegal betting transactions. PhonePe, a prominent digital payments intermediary, challenged this notice, asserting that as a system provider regulated under the Payment and Settlement Systems Act, 2007 and the Bankers’ Books Evidence Act, 1891, it was bound to maintain the confidentiality of user and merchant data. The company contended that such information could o...