Bangalore-based real estate firm Adarsh Developers has formally lodged a complaint against a major cloud service provider, alleging severe data mishandling that has resulted in an estimated financial loss of Rs 150 crore.
The complaint outlines that Adarsh Developers entrusted the provider with critical financial records and sensitive customer information. In May 2023, an alleged business development representative from the service provider persuaded the company to enhance its storage services, assuring improved data security and recovery capabilities even in the event of cyberattacks.
After upgrading to the new system in December 2023, Adarsh Developers reported a catastrophic data loss on January 9, 2025, at 10:48 am, when their entire data environment was reportedly erased.
This incident has severely impacted the company’s operations, causing it to be unable to process customer payments, fulfill tax obligations, or address loan interest payments, leading to daily losses of approximately Rs 5 crore. By the end of January, the cumulative loss escalated to Rs 150 crore.
In response to the situation, local cybercrime authorities have initiated legal action against the cloud service provider, charging them under relevant sections of the Information Technology Act, as well as provisions related to fraud and impersonation.
