DPDP Act 2023Chapter II: Obligations of Data FiduciarySection 4

    Section 4 — DPDP Act, 2023

    Grounds for Processing Personal Data

    Chapter II: Obligations of Data FiduciaryDownload full Act PDF

    Statutory Text

    (1) A Data Fiduciary may process the personal data of a Data Principal only in accordance with the provisions of this Act and for a lawful purpose—
    (a) for which the Data Principal has given her consent; or
    (b) for certain legitimate uses.
    
    (2) A lawful purpose means any purpose which is not expressly forbidden by law.

    Source: Digital Personal Data Protection Act, 2023. Official text available at truconsent.io/resources/dpdp-act.pdf.

    What This Means

    Section 4 collapses the entire question of lawful basis down to exactly two doors: consent (Section 6) or a legitimate use (Section 7). There is no third door. Unlike GDPR's six lawful bases — which include 'legitimate interests' as a flexible catch-all — the DPDP Act's legitimate uses under Section 7 are a closed list of nine specific scenarios. If your processing activity does not fit within Section 7's closed list, you need consent. There is no self-assessed 'legitimate interest' balancing test available to Data Fiduciaries.

    Examples and Instances

    No GDPR-style legitimate interests balancing

    A fintech company that runs fraud analytics on transaction data cannot rely on a GDPR-style 'legitimate interests' basis. Under the DPDP Act, it must either obtain consent for fraud analytics as a disclosed purpose, or fit the processing within one of Section 7's nine legitimate uses (e.g., compliance with a law or judgment).

    Both bases can apply to the same organisation simultaneously

    A hospital can process patient data under consent (Section 6) for general healthcare services and under a legitimate use (Section 7 — compliance with a law) for mandatory disease reporting to health authorities. The bases operate independently for each processing activity.

    How truConsent Covers This

    Consent Engine

    Manages the consent basis for each processing purpose. Consent records are immutable and purpose-tagged, ensuring Section 4(1)(a) is always demonstrable.

    DPDP Navigator

    Maps every processing activity to a lawful basis — consent or a specific legitimate use — so your RoPA is compliant with Section 4.

    Related Sections

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