NEW DELHI, Aug 25: The Supreme Court has raised concerns over the access of private entities to sensitive employment and tax-related information held by government authorities, urging the Centre to consider stronger safeguards against potential misuse of such data.
A bench headed by Chief Justice Surya Kant and comprising Justices Joymalya Bagchi and V Mohana expressed concern on Monday over the emergence of commercial technology platforms that allegedly access, retrieve and verify personal information linked to Employees’ Provident Fund Organisation (EPFO) and income tax records.
The court made the observations while declining to entertain a Public Interest Litigation filed by Piyush Sharma on the issue. The bench, however, suggested that the Centre examine the matter and develop an effective mechanism with the assistance of experts in the field.
The PIL raised concerns about the possible commercial use of personal information that individuals are legally required to submit to government authorities.
The bench observed that the broader issue falls within the policy domain but described private access to sovereign data as “worrisome”. It also highlighted concerns over personal information provided under statutory requirements being accessed and potentially exploited for commercial purposes.
During the hearing, the petitioner claimed that his own inquiry showed that providing PAN and Universal Account Number (UAN) details through a private verification process could lead to the retrieval of his complete employment history associated with those identifiers.
The petitioner alleged that the process did not require an OTP, explicit consent or an apparent identity verification mechanism based on authorisation.
He did not, however, allege that government agencies had leaked the information. Instead, the PIL focused on the safeguards surrounding personal data submitted to authorities under various laws and the possibility that such information could later become accessible to private organisations.
According to the petitioner, employment verification platforms are increasingly using information associated with statutory employment and financial records for activities including employee verification, detection of undisclosed employment, dual-employment screening, labour-market profiling and employment-related decision-making.
The submissions brought broader attention to the need for safeguards governing the use of sensitive information by private technology platforms.
The Supreme Court subsequently asked the Centre to take “necessary steps” to prevent private enterprises from misusing individual data.
The court’s observations come amid growing concerns over data privacy and the increasing use of digital verification systems in employment and financial services. The matter also highlights the challenge of balancing legitimate verification requirements with individuals’ rights over sensitive personal information.