Section 72: Punishment for disclosure of information in breach of lawful contract

Information Technology Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2000

Legal Commentary & Landmark Judgments: Section 72

Section 72 of the Information Technology Act prescribes criminal penalties of imprisonment up to two years and fine up to one lakh rupees for breach of confidentiality and unauthorized disclosure of electronic records in breach of lawful contract.

  • Digital Infrastructure Jurisdiction: Section 72 (along with Section 72A) enforces digital confidentiality and contractual fidelity.
  • Statutory Powers & Jurisdiction: Under Section 72, any person who, in pursuance of powers conferred under the Act or Rules, secures access to any electronic record, book, register, correspondence, or information, and discloses such record to any other person without the consent of the concerned person, commits a criminal offense.

Section 72A extends this to service providers who, having secured access to personal information while providing services under a contract, disclose such information without consent or in breach of the lawful contract, causing wrongful loss or wrongful gain.

Key Landmark Precedents:
  • Justice K.S. Puttaswamy (Retd.) v. Union of India (2017) 10 SCC 1: The Supreme Court affirmed that unauthorized commercial disclosure or leakage of personal data entrusted under contracts violates the core fundamental right to privacy under Article 21, warranting both civil remedies and criminal deterrence.
Legal Commentary:

Section 72A is the primary statutory weapon used against rogue BPO employees, call center executives, and cloud service technicians who steal, leak, or sell customer databases to third-party telemarketers or competitors in breach of non-disclosure agreements (NDAs).