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Bengaluru developer files case against Amazon Web Services; alleges data mishandling led to ₹150 crore loss
Bengaluru-based Adarsh Developers has alleged that Amazon Web Services failed to protect critical financial and customer data despite security assurances
Bengaluru-based real estate company Adarsh Developers has filed a complaint with the cybercrime police against Amazon Web Services (AWS), alleging data mishandling that led to a loss of ₹150 crore, a company spokesperson confirmed to HT.com.
According to a spokesperson of Adarsh Developers, the company had entrusted AWS with storing its financial records and customer data, including details of investments in ongoing and upcoming projects.
In May 2023, Saidalawi Safan, a business development representative from AWS, allegedly contacted the company and urged them to upgrade their service, assuring data retrieval even in the event of cyber attacks or sabotage, according to the FIR dated February 11.
Also Read: Bengaluru buyers association files FIR against real estate developer for fraud worth ₹3300 crore
"However, on January 9, our entire data was wiped out, including customer details and financial records spanning over six years. This was a serious data breach, and our company’s operations have been severely impacted," said Sridhar Rajendran, chief human resources officer at Adarsh Developers, in a statement to HT.com.
As a result, the company has been unable to accept payments from buyers in new real estate transactions or pay statutory taxes, leading to significant financial losses, it alleged. The FIR further stated that the deletion resulted in the loss of "vital financial records, supply chain data, customer information, and operational insights accumulated over the years, which are now inaccessible."
The cybercrime police have registered a case against AWS and others, citing violations under the Information Technology Act, as well as charges of cheating and fraud [Section 318(4)] and impersonation [Section 319(2)] under the Bharatiya Nyay Sanhita (BNS). The investigation is currently underway.
“The claims against AWS are false. AWS operated as designed and is not responsible for the deletion of Adarsh Developers' data,” an AWS spokesperson said in response to queries from HT.com.
Also Read: Karnataka RERA holds real estate developer liable for delayed possession; orders builder to pay compensation to buyers
‘Buyers need not be worried'
Addressing concerns from buyers who have already invested in the projects, Rajendran assured that the company is actively working on data recovery.
"We have already recovered about 4.5 years' worth of data, and the remaining information is being restored manually. None of the homebuyers will be affected by this," he stated.
Currently, Adarsh Developers employs 1,800 staff members and engages over 10,000 labourers through various contractors across 35+ residential projects in Bengaluru. The company reported a turnover of ₹2,100 crore for the financial year 2023-24.
