Section 27: Powers and Functions of Board

Chapter: Powers, Functions and Procedure of Board

Direct Answer

Section 27 of India's DPDP Act 2023 (Powers and Functions of Board) board may inquire into breaches, impose penalties, and issue directions. It applies to all data fiduciaries. Organisations should document controls, maintain audit evidence, and review this obligation before full enforcement expected from May 2027.

Overview

Board may inquire into breaches, impose penalties, and issue directions.

Key Points of Section 27

• Board inquires into personal data breaches and non-compliance
• May impose penalties and issue directions
• May initiate action on complaint or referral

Who This Applies To

All Data Fiduciaries

Compliance Action Steps

1. Maintain inquiry-ready evidence packs
2. Designate legal contacts
3. Run mock inquiry drills

Practical Examples

1. The Board opens an inquiry after a delayed breach notification — Section 27–28 govern inquiry powers and procedure.
2. A Data Fiduciary receives a direction to implement urgent remedial measures during an ongoing inquiry under Board procedure rules.
3. undefined

Statutory Text

Powers and functions of Board. 27(1): Inquire into breaches (data, Fiduciary, Consent Manager, registration, s.37 intermediary) and impose penalties. 27(2): Issue binding directions after hearing. 27(3): Modify, suspend, withdraw or cancel directions.

Source: Digital Personal Data Protection Act, 2023 (No. 22 of 2023), Gazette of India, Extraordinary, Part II—Sec. 1, 11 Aug 2023. Operative excerpts for reference; official Gazette text prevails.

Legal Provisions and Compliance Guidance

Section 27 — Powers and Functions of Board (Chapter: Powers, Functions and Procedure of Board)

Statutory overview

Board may inquire into breaches, impose penalties, and issue directions.

Plain-English requirements

1. Board inquires into personal data breaches and non-compliance

2. May impose penalties and issue directions

3. May initiate action on complaint or referral

Operational implications for Indian organisations

Data fiduciaries and processors should translate Section 27 into concrete controls: update privacy notices, train staff, adjust product flows, and maintain evidence that demonstrates compliance during audits or Board inquiries. Map this section to your Record of Processing Activities (RoPA) and link each control to an owner, review date, and evidence repository. Product managers should embed privacy-by-design checkpoints in sprint reviews; security teams should align SOC monitoring with obligations that carry penalty exposure; and legal teams should track DPBI guidance that interprets ambiguous phrases in the statute.

Relationship to DPDP Rules 2025

The DPDP Rules 2025 notified in January 2025 provide operational detail for many Chapter obligations — including timelines, formats, and registration requirements. Monitor Central Government notifications and DPBI guidance for sector-specific interpretations that refine how Section 27 is enforced. Rule updates may introduce new forms, registration portals, or technical standards that supersede informal industry practice — subscribe to official Gazette notifications rather than relying solely on vendor marketing materials.

Sector-specific considerations

Sections 27–28 define inquiry powers and procedure. Prepare evidence packs and legal contacts before receiving a Board notice.

Implementation playbook

1. Prepare inquiry-ready evidence bundles.
2. Designate legal contacts for Board proceedings.
3. Document good-faith compliance efforts.

Related provisions

Section 27 should be read alongside Section 26, Section 28. Indian compliance programmes typically map these sections together in privacy impact assessments, vendor due diligence questionnaires, and board reporting packs. Cross-referencing prevents siloed fixes — for example, improving consent under Section 6 without updating notice under Section 5 leaves residual regulatory risk.

Documentation and evidence

Maintain version-controlled policies, system logs, consent records, training attendance, and DPIA outputs that reference Section 27. During a Data Protection Board inquiry, documented good-faith compliance efforts can influence remedial directions and penalty outcomes. Evidence should be tamper-evident where possible — immutable consent logs, WORM storage for audit trails, and timestamped policy approvals strengthen your position.

Audit and Board inquiry preparedness for Section 27

When the Data Protection Board opens an inquiry, investigators typically request: (a) your privacy notice and consent records tied to powers and functions of board; (b) RoPA entries referencing Section 27; (c) training records for staff handling relevant workflows; (d) technical evidence such as access logs, encryption configurations, or deletion confirmations; and (e) correspondence with Data Principals on related rights requests. Proactively assemble a section-specific evidence bundle quarterly. Board inquires into personal data breaches and non-compliance; May impose penalties and issue directions. Platforms like Complynz automate control mapping and evidence collection so legal teams can respond to DPBI requests within days rather than weeks.

Enforcement timeline

The Act passed in August 2023. DPDP Rules were notified in November 2025. Consent Manager registration opens November 2026. Full operational enforcement is expected from May 2027 — organisations should complete gap remediation before that date. Early movers gain competitive advantage with enterprise buyers and government tenders that increasingly require demonstrable DPDP readiness.

Frequently Asked Questions

What does DPDP Act Section 27 require?

Section 27 (Powers and Functions of Board) requires that board may inquire into breaches, impose penalties, and issue directions. It applies to all data fiduciaries.

Who must comply with Section 27 of the DPDP Act?

All Data Fiduciaries

What is the compliance deadline for DPDP Section 27?

DPDP Rules 2025 introduced a phased 18-month implementation window. While some provisions are being rolled out from 2025–2026, full enforcement with DPBI penalty powers is expected from May 2027. Organisations should implement Section 27 controls before that date.

How do I implement DPDP Section 27 in my organisation?

Start with a gap assessment mapping Section 27 requirements to your current privacy programme, product flows, and vendor contracts. Assign an internal owner, implement missing controls, document evidence in a central repository, and schedule quarterly reviews. Automated GRC platforms reduce manual effort and help maintain continuous compliance as rules evolve.

Does Section 27 apply to startups and small businesses in India?

Yes, unless a specific exemption notification applies to your organisation class. Section 27 (Powers and Functions of Board) applies to all data fiduciaries. Startups may receive targeted exemptions under Section 17, but core obligations around consent, security, and rights typically remain. Budget-constrained teams should prioritise high-penalty sections first.

How does Section 27 relate to GDPR or other global privacy laws?

Section 27 is India's standalone requirement under the DPDP Act 2023. Organisations already GDPR-compliant must still map DPDP-specific obligations — consent standards, DPBI enforcement, penalty caps, and Rules 2025 timelines differ from EU law. Apply the higher protection standard where laws overlap and maintain separate India-specific documentation.

Suggested Next Step

DPDP Platform — Maintain continuous compliance evidence for Board inquiries.

Back to Complete DPDP Guide