Tech Project Head Arrested for Misusing Government Data

Hyderabad, Apr 29 : In a significant development highlighting concerns over data security and governance, the Central Crime Station (CCS) police in Hyderabad have arrested a senior project executive of a private technology firm for allegedly misusing government-owned digital assets and attempting to redirect sensitive data to a private platform.

The accused, M. Srinivasulu, who served as the chief of projects at Transaction Analysts (India) Private Limited, was taken into custody on April 25 following a formal complaint lodged by the Electronic Service Delivery (ESD) wing of the state’s IT and communications department.

Allegations of Data Misuse and Breach of Trust

According to officials, the complaint accuses the company’s top management and associated personnel of serious violations, including breach of trust, misappropriation of digital infrastructure, and deliberate obstruction in transferring project control after contract completion.

Authorities allege that the firm failed to hand over critical project components such as source code, user databases, and other digital assets, despite clear contractual obligations. Instead, it is claimed that the company attempted to assert ownership over the data through questionable documentation and sought to channel user information into a privately controlled application.

Background of the Government Contract

The company had originally secured the project in January 2017 to design, develop, and maintain a key state-level digital platform. The government reportedly invested approximately ₹70 lakh in the project’s development and rollout, along with ongoing monthly maintenance payments.

The agreement was extended multiple times between 2018 and 2025, reflecting continued reliance on the firm’s services. However, the contract formally concluded on May 31, 2025, after which a new vendor, Purview India Consulting and Services LLP, was selected through a competitive bidding process.

Failure to Transfer Project Assets

Officials emphasized that the agreement clearly mandated a complete transfer of all digital resources to the government upon contract termination. However, the accused firm allegedly did not comply with these requirements and instead created hurdles during the transition phase.

Investigators believe that this non-cooperation not only delayed the onboarding of the new vendor but also raised serious risks related to data integrity and public service continuity.

Ongoing Investigation and Legal Action

Following the complaint, the CCS police registered a case and began issuing notices to several current and former employees linked to the project. While Srinivasulu has been arrested, other key individuals, including the company’s CEO Srinivasa Rao Katuri and operations manager Kiran Kumar, are currently absconding.

Law enforcement agencies are actively pursuing leads to locate the remaining accused and gather further evidence in the case.

Government Considering Strict Measures

In response to the incident, government authorities are evaluating strict punitive measures against the firm. These may include blacklisting the company from future contracts and initiating proceedings to recover financial losses incurred due to the alleged misconduct.

Officials have reiterated the importance of safeguarding public data and ensuring accountability in government technology partnerships.