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Difficulty: MediumNational Events, Acts, and Governance Initiatives

Regarding the statutory framework and institutional mechanisms established under the Digital Personal Data Protection (DPDP) Act, 2023, evaluate the following statements:

1. The Data Protection Board of India is empowered to inquire into personal data breaches and direct urgent remedial measures.
2. The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) serves as the designated appellate body to hear appeals against decisions of the Data Protection Board.
3. The statutory financial penalty for failing to take reasonable security safeguards to prevent a personal data breach is capped at a maximum of ₹50 crore per instance.

Which of the statements given above are correct?

  1. A
    1 and 3 only
  2. 1 and 2 onlyAnswer
  3. C
    2 and 3 only
  4. D
    1, 2 and 3

Answer

Statements 1 and 2 only are correct.
The statement identifying '1 and 2 only' is correct. The Digital Personal Data Protection Act, 2023 establishes the Data Protection Board of India as the primary enforcement body and designates the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) as the appellate authority. Meanwhile, the third statement is false because the maximum penalty for failure to adopt reasonable security safeguards to prevent personal data breaches is ₹250 crore, rather than ₹50 crore.

Step-by-Step Solution

1
Analyze the statutory role and powers of the Data Protection Board of India (DPBI).
Statement 1 is correct. Under the Digital Personal Data Protection Act, 2023, the Data Protection Board of India functions as an adjudicatory mechanism tasked with inquiring into data breaches, directing mitigation, and levying financial penalties.
The Act establishes DPBI as a digital-by-design regulatory authority for enforcement.
2
Identify the designated appellate tribunal under Section 29 of the Act.
Statement 2 is correct. Any person aggrieved by an order of the Data Protection Board may appeal before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).
TDSAT is explicitly designated in the legislation as the appellate authority to ensure specialized and speedy dispute resolution.
3
Examine the statutory penalty structure in the Schedule of the Act.
Statement 3 is incorrect. The Schedule to the DPDP Act, 2023 prescribes a maximum penalty of up to ₹250 crore (not ₹50 crore) for failure to take reasonable security safeguards to prevent a personal data breach.
Higher penalty thresholds were established to ensure strong deterrence against organizational negligence.

Key Concept

Statutory Architecture and Penalty Provisions of the Digital Personal Data Protection Act, 2023
Estimated Time:1m 15s
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Topics

National Events, Acts, and Governance Initiatives

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