DPDP Act 2023: Director Liability, Board Responsibilities And Data Privacy Compliance For Indian Companies

India’s Digital Personal Data Protection Act, 2023 (“DPDP Act”) represents one of the most significant regulatory developments affecting corporate governance, data privacy compliance and risk management in recent years. While many organisations initially viewed the legislation as a technology or legal compliance issue, the DPDP Act has rapidly emerged as a boardroom concern requiring active involvement from directors, chief executive officers, managing directors and senior management.

Can Directors Be Liable Under the DPDP Act?

As businesses increasingly rely on digital ecosystems, customer analytics, artificial intelligence, cloud infrastructure and data-driven decision making, the collection and processing of personal data have become central to commercial operations. Consequently, questions relating to DPDP Act compliance, director liability, board responsibilities and data breach management are becoming increasingly important for corporate leadership.