
No secrets from law, Karnataka HC raps PhonePe on lost money
'The submissions of the petitioner's counsel that information that is to be kept confidential need not be divulged, cannot be accepted. The protection of consumer privacy cannot eclipse the lawful imperative of investigating officers to secure evidence and take the investigation to its logical conclusion. Confidentiality must coexist with accountability,' said Justice M Nagaprasanna, rejecting the petition filed by PhonePe Private Limited.
It further said that today, conventional crimes have receded and new-age crimes have sprung up in large numbers. New-age crimes are cybercrimes, modern offences which demand a swift, and effective response.
The police must be empowered within the limits of law to unearth digital footprints that could otherwise vanish. Therefore, while privacy as contended by the petitioner should be maintained, it cannot be wielded as a shield against lawful investigation, the court said.
CEN police issued summons dated December 7, 2022, to PhonePe to provide details after receiving a complaint from Prashanth, a resident of Chikkamagaluru district, that he lost funds while transacting through several payment gateways for cricket betting. However, PhonePe contended that it is protected under the Bankers' Books Evidence Act, 1891, and cannot divulge the information.

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