Safeguarding Digital Trust: Corporate Negligence and White-Collar Accountability in India’s Data Protection Framework

Shreemanshu Kumar Dash; Isha Tiwari

doi:10.36948/ijfmr.2025.v07i06.60841

Safeguarding Digital Trust: Corporate Negligence and White-Collar Accountability in India’s Data Protection Framework

Author(s)	Dr. Shreemanshu Kumar Dash, Ms. Isha Tiwari
Country	India
Abstract	India has witnessed a fast rate of digitization of its economy, which has made personal data an extremely important corporate asset whose security has become the determinant of consumer confidence and legal compliance. Non-but, in recent years, several cases of data breaches, including the Aadhaar leak, data breach at Zomato, and data exposure of Air India, demonstrate a disastrous trend of corporate negligence, abuse, and structural malfunctions, which is a modern-day variant of white-collar crime. This paper will look at the liability of companies in data breaches according to the Digital Personal Data Protection Act, 2023 (DPDP Act), responsibilities of data fiduciaries in statute, duties in breach notification, and consumer protection processes. It examines the ways in which breaches of sensitive data, underreporting of breaches, and unauthorized use of personal information are both ethical and legal offenses, with a lack of accountability and enforcement. The paper also analyzes the rights of data principals, access, correction, erasure and redressal of grievances and compares the framework of the country with international regulations, like GDPR and CCPA, that offer more mechanisms of enforcement and redress. Major issues that are discussed in order to prove systemic weaknesses in the existing regime are poor institutional supervision, jurisdiction overlap with the IT Act and RBI rules, no criminal penalties, and corporate foaming at the mouth. The paper ends with the proposals of some reforms to make corporations more responsible, such as criminal liability due to gross negligence, Data Protection Board power increase, periodical audits of compliance, technological security and raising public awareness. Being able to frame the issue of data breaches within the framework of white-collar crime, the paper highlights the importance of the balanced approach that would implement strict corporate responsibility and encourage innovation in the Indian digital economy. Finally, it highlights the importance of combining legal, technical, and social actions to ensure the governance of data to provide privacy and ethical corporate conduct.
Keywords	Data, Breaches, Corporate, Negligence, Liability
Field	Sociology > Administration / Law / Management
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-11-16
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.60841

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Safeguarding Digital Trust: Corporate Negligence and White-Collar Accountability in India’s Data Protection Framework

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