Krafton India Accused of Selling User Data: Legal Case Sparks Industry-Wide Privacy Concerns

India’s gaming market has seen meteoric growth, but with expansion comes exposure. This April, Krafton India – the studio behind Battlegrounds Mobile India (BGMI) – found itself at the center of a major legal storm. Accusations of selling user data for profit triggered an FIR, a court-ordered investigation, and industry-wide debate about privacy standards in digital gaming.

This isn’t just another scandal. It’s a test case that could define how India treats data privacy in games moving forward, and the fallout may extend beyond Krafton.

Key Takeaways

• Krafton is under formal investigation after being accused of selling BGMI user data via Telegram for ₹2,000 per subscriber.
• The legal charges are severe, involving cheating, conspiracy, and breaches of the IT Act.
• India’s new data privacy laws may see their first major enforcement through this case.
• The outcome could reshape compliance norms for all gaming platforms in India.
• Operators should immediately audit their data protocols to avoid a similar fate.

What Exactly Is Krafton Being Accused Of?

Let’s get straight to it.

On April 8, 2025, Santosh Torane, a resident of Maharashtra, filed a First Information Report (FIR) claiming that Krafton India sold confidential user data to third parties via Telegram. According to the complaint, the data was sold at a rate of ₹2,000 per subscriber.

The alleged violations include:

• Cheating (Indian Penal Code Section 420)
• Criminal conspiracy (IPC Section 120-B)
• Violations of the Information Technology Act, 2000 under Sections 72, 72A, and 85

In plain terms: Krafton is accused of illegally profiting from private user data, breaking both criminal and IT laws in the process.

The Legal Machine Kicks Into Gear

After Torane’s initial complaints were ignored, he escalated the matter to the Judicial Magistrate First Class in Malshiras. The court, acting under Section 156(3) of the Criminal Procedure Code, ordered the Akluj Police to initiate a formal investigation.

Krafton’s response was fast. The company filed two writ petitions: Nos. 4806 and 5342/2024. They’re asking the Bombay High Court to quash the FIR and stop the probe.

On April 15, the consolidated case appeared before Justices Sarang V. Kotwal and Dr. Neela Gokhale.

Krafton’s official statement was cautious but firm:

“At KRAFTON, the protection of personal data is of utmost importance to us. We are committed to upholding the highest standards of data security. As the matter is currently sub judice, we believe it is best to wait for the legal process to conclude.”

Behind that corporate-speak is a deeper concern: if the charges stick, Krafton could be facing serious reputational and financial damage.

This Isn’t Krafton’s First Run-In With Indian Authorities

Let’s not forget. BGMI was already banned in India once before.

Back in 2022, the game was pulled from app stores over national security concerns related to data transfers to Chinese servers. It returned under stricter compliance guidelines, rebranded as BGMI.

This new FIR brings all of that back into the spotlight, raising fresh questions about Krafton’s handling of sensitive data and adherence to local laws.

India’s Data Laws Are No Longer Toothless

In 2023, India passed the Digital Personal Data Protection Act, a long-awaited upgrade to its regulatory toolkit. The law gives authorities real teeth when it comes to penalizing companies that mishandle user information.

Krafton’s case could become the first major stress test for this legislation. If courts confirm the company violated data privacy statutes, it would set a precedent for future enforcement against gaming firms operating in India.

It also comes at a time when online gaming platforms were recently brought under the Prevention of Money Laundering Act (PMLA), forcing operators to introduce rigorous KYC and transaction monitoring protocols.

Why This Case Matters for the Entire Industry

The implications here are bigger than just one studio.

If a company like Krafton, backed by a global parent, publicly visible, and already once flagged by the government,can come under fire this hard, then no operator is truly safe from scrutiny.

Here’s what other platforms need to take away:

• Data practices are no longer backend ops – they’re front-page risks
• Courts will no longer treat digital platforms as a grey area
• Compliance now starts before a launch, not after things go wrong

There’s a growing appetite within India’s legal and political systems to make an example out of a high-profile case. Krafton might be the one to pay that price.

What Could Happen Next

The hearing on April 15 may be just the beginning.

If the High Court allows the investigation to continue, Krafton could face:

• A criminal trial
• A forced public audit of data practices
• Further suspension or banning of BGMI
• Investor backlash or loss of partnerships

And for India, a conviction could signal that it’s entering a new phase of digital maturity – one where privacy laws have real bite and global companies are held accountable on local terms.

Industry Insight: Could This Spark an Investor Chill?

Possibly.

India has been seen as one of the fastest-growing gaming markets globally, pulling in over $2.7 billion in revenue in 2024. If this case becomes a warning shot, foreign investors might slow down their aggressive entry strategies.

Questions will be asked:

• How safe is it to operate in India?
• What legal obligations are truly enforceable?
• How exposed is our data stack?

The smart operators will use this time to audit their compliance frameworks and legal exposure. The others? They’ll wait – and risk becoming the next Krafton.

Conclusion: A Wake-Up Call, Not a One-Off

Whether Krafton is found guilty or not, the case has already changed the conversation in India’s gaming industry.

Data privacy is no longer a checkbox. It’s the battlefield. And game developers are no longer tech startups with impunity – they’re now being treated as data handlers subject to criminal law.

The lesson here is clear: trust is earned, but accountability is enforced. Any operator hoping to grow in India will need more than just a great product – they’ll need a bulletproof data game, too.

References

1. Krafton under fire for allegedly leaking user data
2. BGMI Krafton data leak lawsuit
3. Krafton India in trouble again for alleged sale of user data
4. Krafton accused of data sharing
5. FIR against Krafton India
6. Times of India coverage
7. Background on India’s gaming regulations