Chinese investors in Indian unicorns: India sitting on data trap
While the government did see the threat from the Chinese apps, it does not see any from investors from China accessing data of Indian consumers from their Indian partners.
With the ban on some 220 Chinese apps, India may have protected its sovereignty and integrity from prying Chinese eyes. But authorities, however, don’t seem to have a clue in protecting the country’s data from Chinese investors, who continue to invest in Indian apps and unicorns and gain access to data of users, who are predominantly Indian citizens. Besides the agreements between the investors and the apps are not in public forums for analysts to study it.
While the government did see the threat from the Chinese apps, it does not see any from investors from China accessing data of Indian consumers from their Indian partners. It is high time the government answer this question: Should the government continue to allow Chinese investors in Indian unicorns without adequate norms for protecting Indian users’ data?
During 2016-19, Chinese investments in Indian start-ups have grown 12 times. An India Today report listed the Alibaba Group’s strategic investments in Indian unicorns, starting from Big Basket ($250 million), Paytm.com ($400 million), Paytm Mall ($150 million), Zomato ($200 million) to Snapdeal ($700 million). Tencent, the other Chinese company, has invested in Indian firms like Byju’s ($50 million), Flipkart ($300 million), Hike Messenger ($150 million), Ola ($500 million) and Swiggy ($500 million). The investment from China seems to have fallen in 2020 following changes in the foreign direct investment rules that made prior government approval mandatory for investments from countries that share a land border with India. The Alibaba Group is among those hit by the new norms and is unlikely to sign fresh deals to fund Indian companies.
A recent Indian Express report said a Shenzen-based tech company with links to the Chinese government and Chinese Communist Party is monitoring 10,000 individuals and organisations including key decision-makers like the Prime Minister, Chief of Defence Staff among others.
Given the ban on apps because they were a threat to security, the government is yet to formulate full-fledged data security norms. Cyberlaw expert Pavan Duggal, who spoke to APN, said, “Chinese apps like Tiktok, Shareit were a great threat to Indian data because these apps, compared to other apps, were asking for a lot of permissions. They were generating and collecting a lot of personal data of users and sending them to servers in China which could be analysed using artificial intelligence and machine learning.”
“Any and every server anywhere is vulnerable to a potential data breach. But servers in China are highly vulnerable as China has a national cybersecurity law from 2017 and under this law, any information to servers, systems located within China could be automatically accessed or shared with the Chinese government. Hence, data on Chinese servers is not at all safe,”
-Duggal
“On the other hand, India does not have any law on data protection. The Personal Data Protection Bill, 2019 is pending for consideration of the joint parliamentary committee. As far as data is concerned, India is a leaking ecosystem,” he said.
Economist Akash Jindal said India needs to curb Chinese investment because it’s a threat to national security. When asked about the economic impact of curbing Chinese FDI, he said if we are able to market ourselves well, we would be in a position to solicit the same FDI from other countries.
On the security implications of a potential data breach in apps/companies associated with Chinese investors, defence expert PK Sehgal said not only does India need to ban apps linked to China, but “we also need to ban companies like Tencent, Alibaba who are stealing our data”. The moment India does it, other countries will follow, he said.
Talking about modern warfare, he said predictability plays an important role in warfare and data can help to predict the enemy, hence, security implications of a data breach are manifold. Data help to carry out psycho-analysis of important personalities and how leaders are going to react in a certain situation, he said. Sehgal emphasised on the need to take cyber warfare more seriously.
“India needs to secure data as the Chinese are in a position to create chaos and mayhem in India. Through the use of artificial intelligence, China can refine data and can impact India’s financial sector, railways, power grid. Before a single bullet is fired, there may be chaos and mayhem in India,” he added.
He emphasised on the use of information, misinformation, disinformation, propaganda as the tools of modern war. Last year, an Army jawan was honey-trapped via social media and ended up sharing confidential information with Pakistani agencies. When asked about the laws/guidelines for defence personnel using apps, Sehgal added the Defence Ministry has very clear instructions that defence personnel are not supposed to have these apps, but it is tough to monitor each jawan. Jawans are the most vulnerable for a potential honey trap, Sehgal said.
Given this situation, India needs to come up with a clear and cogent policy to deal with data localisation and specific guidelines so that the data has to be dedicatedly protected, otherwise Chinese investors could impact Indian security, sovereignty and integrity.
Supreme Court judge Justice Ujjal Bhuyan has criticised the assault of protesters by police personnel during the recent CJP demonstrations in Delhi, describing the conduct as “very, very distressing” and a matter of serious concern.
Speaking at the launch of retired IPS officer Yashovardhan Azad’s book Policing the Republic, Justice Bhuyan said the detachment expected from police officers appeared to be diminishing.
He expressed concern over young Indian Police Service officers personally participating in the assault of protesters and demonstrators.
Justice Bhuyan stresses need for responsible policing
Justice Bhuyan said effective policing does not require excessive use of force or infringement of human rights. He emphasised that the police play an important role in maintaining public confidence because citizens generally approach the police when they feel they have been wronged.
He said maintaining the credibility of the police force was therefore of “utmost importance”.
The judge’s remarks come amid continuing scrutiny of the police and paramilitary response to the CJP protests in Delhi.
Supreme Court panel to examine police action
The Supreme Court has constituted a high-level panel to investigate allegations concerning the use of force by Delhi Police during the July 20 student protests at Jantar Mantar and the subsequent Parliament march.
The panel, headed by former Supreme Court judge Justice R Subhash Reddy, will examine complaints relating to lathi charges, tear gas, pellet guns and electronic batons. It will also look into allegations of targeted harassment or molestation of female protesters and review available CCTV and video footage.
The police response during the protests has faced criticism, while Delhi Police has maintained that its personnel were also attacked during the clashes.
Judge raises concern over custodial deaths and torture
Justice Bhuyan also spoke about custodial torture and deaths, describing custodial death as one of the gravest crimes in a society governed by the rule of law.
He stressed that torture and cruel, inhuman or degrading treatment cannot be accepted, regardless of whether such conduct takes place during investigation, interrogation or other circumstances.
The judge further warned that when government functionaries themselves become lawbreakers, it can undermine respect for the law and encourage lawlessness.
He questioned whether citizens lose their fundamental rights simply because they have been arrested by police.
‘Fake encounters’ cannot be part of policing
Justice Bhuyan also addressed allegations of extra-judicial killings, commonly referred to as “fake encounters”. Referring to a 2011 Supreme Court judgment, he said such encounters undermine the rule of law.
He stressed that an “encounter philosophy” cannot become part of legitimate policing and said proven fake encounters involving serving police officers must be treated with the utmost seriousness.
The Supreme Court’s panel will now examine the allegations surrounding the police action during the July 20 protests as scrutiny of the events continues.
Eight engineering students from Tamil Nadu were killed after the car they were travelling in crashed into a parked lorry on NH-66 in Kerala’s Thrissur district late Friday night, police said.
The accident took place at around 11.40 pm at Panambikkunnu in Kaipamangalam. The students were travelling from Guruvayur towards Kodungallur when their car collided with the rear of the lorry.
What happened in the Thrissur accident
According to the FIR, the lorry was parked illegally on the right side of the highway near a barricaded section where traffic had been diverted because of ongoing construction work.
Police said the car was travelling at high speed and its driver apparently failed to notice the diversion barricade before the vehicle crashed into the rear of the lorry.
The lorry was registered in Maharashtra.
Six students died at the accident spot, while two others were declared dead on arrival at a nearby hospital, police said.
Six victims identified
The victims were students of an engineering college in Dindigul and were travelling towards Kodungallur along NH-66.
Police have identified six of the eight victims. Four of them — Surya, Yuvasanjith, Vishva and Johua — were from Dindigul. The other two identified victims were Santhosh and Prasanna from Madurai.
The identities of the remaining two students are yet to be confirmed.
Residents, fire and rescue personnel and police took part in the rescue operation and pulled the students from the badly damaged car. The bodies were subsequently taken to the mortuary of Thrissur Medical College.
Case registered against lorry driver
Kaipamangalam police have registered a case against the lorry driver under Section 105 of the Bharatiya Nyaya Sanhita for culpable homicide.
Police said the driver went into hiding shortly after the accident.
The families of the victims were contacted using student identity cards recovered from the bodies. Police said some families were unaware that their children had travelled to Kerala.
Postmortem examinations will begin after the families reach Thrissur Medical College, police said.
Air India has terminated the employment of the pilot-in-command of a Phuket-Delhi flight after he tested positive for a psychoactive substance.
The pilot was in command of flight AI2379, which was travelling from Phuket to Delhi on August 4 when the aircraft suddenly lost altitude over Odisha. The incident left 24 passengers injured.
Air India said the termination was in line with its zero-tolerance policy regarding safety violations and regulatory requirements.
Air India terminates pilot with immediate effect
In a statement, the Tata-owned airline said the pilot-in-command had tested positive for a psychoactive substance.
The airline said that, considering its zero-tolerance approach to violations related to safety, fitness and regulatory requirements, the pilot’s employment had been terminated with immediate effect.
Air India also said it continues to cooperate fully with the investigation into the incident and has provided access to relevant operational, maintenance and technical records.
What happened on the Phuket-Delhi flight?
According to the preliminary findings of the Aircraft Accident Investigation Bureau (AAIB), the Airbus A320 was carrying 145 people when it experienced the near-simultaneous loss of all three hydraulic systems while cruising at around 36,000 feet.
The technical failure resulted in the autopilot disconnecting and triggered a brief stall warning. The aircraft subsequently lost altitude, resulting in injuries to 24 passengers.
The preliminary report also noted that the pilot tested non-negative for a psychoactive substance in a confirmatory test.
However, the report did not establish that the pilot’s drug-test result caused or contributed to the hydraulic system failure or the subsequent loss of altitude.
AAIB recommends action over psychoactive substance finding
The AAIB described the confirmation of psychoactive substance use as a serious concern and recommended that the Directorate General of Civil Aviation (DGCA) take appropriate action against the pilot on priority.
The investigation into the technical and other aspects of the incident is still underway.
The preliminary report also noted that the co-pilot was flying the aircraft when the incident occurred and attempted to bring the situation under control.
Air India said safety remains its highest priority and that its pilots undergo training, proficiency checks, medical examinations and other regulatory assessments in accordance with applicable requirements.
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