Adarsh Developers Files Complaint Against AWS Over ₹150 Crore Business Loss from Data Deletion

Bengaluru-based real estate company Adarsh Developers has lodged a police complaint against Amazon Web Services (AWS), alleging that its business data was deleted, resulting in a financial loss of ₹150 crore. The company claims that critical financial and customer data stored on AWS cloud services became inaccessible in January, disrupting its operations.

The complaint, filed by Chief Human Resources Officer (CHRO) Sridhar Rajendran, accuses AWS of violating the Information Technology (IT) Act and sections of the Bharatiya Nyaya Sanhita (BNS) related to fraud, cheating, and impersonation. Adarsh Developers, which has an annual turnover of ₹2,100 crore, claims that the data loss has severely impacted its ability to collect payments, comply with tax requirements, and meet financial commitments.

According to Adarsh Developers, the issue began in May 2023 when an AWS business development representative, Saidalawi Safan, contacted the company and proposed an upgrade to a new cloud storage system. The representative reportedly assured that the upgraded service would offer enhanced data security and retrieval options, even in cases of cyberattacks or sabotage. Convinced by these assurances, the company adopted the upgraded system in December 2023.

However, in January 2024, the company discovered that its AWS-hosted data environment had been completely deleted. When Adarsh Developers reached out to its implementation partner, SAVIC Technologies Pvt. Ltd., it was informed that the data loss resulted from actions taken by certain individuals at Redington, an AWS vendor.

The company claims that six years’ worth of business data, including financial records, supply chain information, and customer details, became permanently inaccessible. As a result, the firm has been unable to process customer payments, file statutory taxes, or meet interest obligations to lenders. The estimated financial loss due to the disruption has been pegged at ₹150 crore by January 31, with a daily loss of approximately ₹5 crore.

AWS has denied the allegations, stating that the claims are false and that its services operated as designed. A spokesperson for AWS clarified that the company is not responsible for the deletion of Adarsh Developers’ data.

Following the complaint, the cybercrime police have initiated an investigation into the matter. Authorities are expected to examine AWS’s role, the involvement of its vendors, and the circumstances that led to the data loss. The investigation aims to determine whether there was any wrongdoing or negligence in handling Adarsh Developers’ cloud storage.

While the legal proceedings and investigations continue, Adarsh Developers is likely to seek ways to recover its lost data and mitigate the financial impact. The outcome of this case could have broader implications for companies using cloud services, emphasizing the need for stronger agreements and safeguards in cloud storage contracts.