The Karnataka High Court ruled that privacy protections do not override police investigations when public interest or criminal matters are involved.
The court said digital payment companies like PhonePe are not fully immune from sharing user transaction data with the police during a criminal investigation.
PhonePe had challenged a police summons asking for transaction details linked to a 2022 fraud complaint.
PhonePe argued that laws like the Payment and Settlement Systems Act and the Bankers Books Evidence Act protected it from disclosing such information.
The court clarified that these laws allow disclosure if ordered by a court or a legal authority, such as a police officer during an investigation.
The judge emphasized that while user privacy is important, it must coexist with the need for accountability and effective investigation.
COMMENTS