WhatsApp questions the suitability of petitioner who filed a PIL against WhatsApp Pay
In an affidavit filed in the Supreme Court last night,
WhatsApp has questioned the credentials and suitability of Good Governance
Chambers (G2 Chambers), “a legal Think Tank”, that filed a PIL against WhatsApp
Pay in the apex court on February 28, 2020. Filed by Brian Hennessy, the
director and associate general counsel of WhatsApp, the affidavit argues that
the PIL is not maintainable in court and calls G2 Chambers a “busybody” that,
as an “unregistered Think Tank” [original emphasis], was just seeking “to
create new barriers for WhatsApp Pay under the guise of enforcing fundamental
rights”. MediaNama has seen a copy of the affidavit.
The PIL, filed by Sawtwik Chinta, part of G2 Chambers, on
February 28, 2020, had asked the Supreme Court to not grant permission to WhatsApp
to expand its digital payments system in India through UPI.
In its affidavit, WhatsApp has said that the beta version of
WhatsApp Pay was launched on February 7, 2018 with NPCI’s approval and is
limited to less than 1% of all its users in India. RBI and NPCI had green-lit
the launch of WhatsApp Pay in early February 2020 and allowed it to expand its
user base to 10 million users.
In the last hearing on May 13, Senior Advocate Kapil Sibal,
on behalf of WhatsApp, had said that the company would not go ahead with its
payments’ scheme without complying with all the regulations. At that time, the
Supreme Court bench, constituting Chief Justice S.A. Bobde, and Justices Indu
Malhotra and Hrishikesh Roy, had said that this PIL should not come in the way
of the RBI granting WhatsApp any permissions.
WhatsApp, Facebook (represented by Senior Advocate Arvind
Datar) and the Union of India (represented by Solicitor General Tushar Mehta)
to file their reply affidavits. The bench had also tagged Delhi-based think tank
Centre for Accountability and Systemic Change’s case against WhatsApp with this
matter. CASC had petitioned the apex court in July 2018 about WhatsApp’s
failure to comply with Indian laws, including its failure to appoint a
grievance officer.
In this case, G2 Chambers is represented by Senior Advocate
Krishnan Venugopal, Deepak Prakash, Yasir Rauf, Gaurav Sharma and the law firm
Law Juno. ICICI Bank, with whom WhatsApp started its pilot service, is also
listed as a respondent in the case.
WhatsApp’s arguments
G2 Chambers does not need to interfere in a process that has
been going on for 2 years: The beta version of WhatsApp Pay was launched over
two years ago and since then, WhatsApp has worked diligently with NPCI. “There
is no occasion for any ‘busybody’ to intervene at this stage and superimpose
their views in this process,” the affidavit reads.
G2 Chambers is unsuitable for pursuing this PIL since
Unregistered association: It is an unregistered association
and thus, as per the Supreme Court, does not “possess a legal personality” and
thus has no fundamental rights to enforce. The affidavit said the apex court,
in the past, has “strictly scrutinized” and “banned” such associations from
filing PILs.
Formed just two months before filing the PIL: It was formed
just two months before the PIL was filed and has provided no proof of engaging
in privacy-related public interest advocacy. WhatsApp has given the recent
domain registration of G2 Chambers (on January 26, 2020) as evidence of this.
It “appears to have waited two years to form its ‘think tank’ to file this
PIL,” reads the affidavit. On its website, areas of focus include food,
unemployment, healthcare and right to privacy. For WhatsApp, the right to
privacy is a “clear outlier” and “potentially included for the sole reason of
justifying this PIL”. G2C’s Twitter account was created in February 2020, while
its Facebook page was created on March 29, 2020. The PIL was filed on February
28.
Might be involved with a similar complaint with the CCI: G2
Chambers has not revealed to the Supreme Court that it may be involved with a
similar complaint with the Competition Commission of India. The CCI complaint,
filed by Harshita Chawla on March 19, asks for the same relief (to stop
WhatsApp Pay), is represented by the same law firm and was filed shortly after
this PIL (Law Juno), and until recently, Law Juno and G2 Chambers shared the
same address.
G2 Chambers and the law firm representing it are the same:
The domain names for both G2 Chambers and Law Juno were registered on the same
date — January 26, 2020. And the individual who appears to have registered for
the G2 Chambers website and the Law Juno website has the same name — Sahil
Baghla. A Sahil Baghla posted a job listing on LinkedIn for G2 Chambers and
claims to be employed at Law Juno. MediaNama could also see that LinkedIn
activity (available here, here, here).
As per the affidavit, an individual named Sahil Baghla was
arrested in connection to a $300 million worth Bitcoin-based Ponzi scheme. This
individual was charged with offences of criminal breach of trust and cheating
by the Bombay High Court in July 2019. When we called Law Juno, we were told
that Sahil Baghla is a part of Law Juno, and Law Juno is indeed representing G2
Chambers. We have reached out to them for more details.
No fundamental right has been violated and nor does the PIL
say so. Thus, the PIL doesn’t make sense, and is not maintainable under Article
32.
Response of Good Governance Chambers
Deepak Prakash, who is one of the lawyers representing G2
Chambers, told MediaNama that WhatsApp is arguing only on the basis of locus
standi of the PIL. “This is not an issue at all. There is no legal validity [to
their arguments in the affidavit] at all. They were arguing the same thing in
the court as well,” he said.
The real issue, Prakash said, “is data protection and
sharing the financial data of millions of people”. “They have to answer on
merit now. They have to say that we are not violating [the rules],” he said.
When we asked Prakash that maintainability would have to be
established to proceed to merits of the case, he said, “That [maintainability]
is the main argument of Mr Datar who appeared in the court. But the court
completely rejected that argument. The CJI said that we cannot throw away a
petition on the basis of locus standi.”
Prakash was not fully aware of the circumstances around
Sahil Baghla and said as much. But he did ask what is the problem if the same
person made the website for both G2 Chambers and Law Juno. “My CA is making
case of lot of other lawyers, and other companies. He is using the same ID.
What is the issue with that?” he said.
On whether or not the same case has been filed in the CCI,
Prakash said that he would have to verify that, but even if it were filed,
“what is the problem in that?” “Competition Commission of India deals with a
different aspect; Supreme Court of India deals with a different aspect. One
deals with fundamental rights, the other is about competition,” he said.
What did the PIL say?
The petition argued that WhatsApp “has been known to have
failed to secure sensitive data of its users” and has also “failed to assume
accountability and responsibility for the same”. As per the petition, WhatsAp
has defaulted in securing data of users as per the localisation norms set forth
by the RBI and NPCI, and by failing to have a dedicated app for UPI payments.
Combining messaging and payments into one app is a “highly volatile model” and,
as per the petition, puts sensitive user data at high risk. It has cited the
NSO-Pegasus case, indexing links to group chats on Google, etc. as instances of
lax cybersecurity in WhatsApp.
The PIL also said that WhatsApp Pay was willfully not
complying with the UPI regulations and was a “direct threat to national
security”. The PIL had also said that the $5.7 billion deal between Reliance
Jio and Facebook would give Facebook and WhatsApp an “even larger user data”.
Interestingly, Reliance Jio is not a respondent in this PIL, but CERT-In is.
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