Karnataka HC Rejects PhonePe’s Bid To Withhold User Data In Online Betting Probe

The Karnataka High Court has dismissed PhonePe's attempt to block police access to user data in a suspected online betting case.

The court ruled that privacy cannot override criminal investigations.

The case began in 2022 when a man reported losing about Rs 6,000 after transferring money through PhonePe to betting websites during India–South Africa cricket matches.

When he couldn’t retrieve the money and the sites were taken down, he filed a cheating complaint.

In December 2022, police asked PhonePe for details of the user involved, the merchant who received the funds, and any checks done during onboarding.

PhonePe declined, claiming it was only a payment platform with a duty to protect user privacy. It argued that data should only be shared under a court order, not based on a police notice.

The court disagreed. In its April 29 order, it emphasised the need for quick digital investigations in cybercrime cases like online betting.

It noted that intermediaries are legally required to share user data with law enforcement within 72 hours of a valid request, under existing IT rules.