With the Digital Personal Data Protection (DPDP) Act coming into force, in the context of Housing Societies, there are some significant changes to the responsibility of the Resident Welfare Associations (RWAs)/Management Committees.
To help associations understand what the law means in practice, ADDA conducted an exclusive DPDP awareness workshop for Management Committee members.
The session was conducted by San Banerjee, CEO & Co-Founder of ADDA, and focused on explaining:
- The DPDP Act’s relevance to Housing Societies
- The responsibilities of the RWAs and Software Vendor Partners
- Practical steps societies must take to stay compliant
This blog captures the highlights of what was covered in the workshop, and some important questions raised by MC members.
Table of Contents
What Is the DPDP Act?
The Digital Personal Data Protection Act is a central government legislation that governs how digital personal data of Indian citizens can be collected, processed, stored, and used.
The DPDP Act, talks about 3 main stakeholders:
- Data Principal – The entity whose data is being collected, stored and used
- Data Fiduciary – The entity who determines the purpose and means of processing of personal data;
- Data Processor – Entity who uses the data on behalf of the Data Fiduciary
Let’s understand who these stakeholders are, in the context of Housing Societies:
- Data Principal are the Owners, Residents, Staff, Visitors whose data is being collected
- Data Fiduciary are the Management Committee, as they determine the purpose of using the personal data
- Data Processor are the software vendors, or any other systems who store such personal data
At its core, the DPDP Act is built on two principles:
- Personal data must be used only for the purpose for which it is collected
- Purpose Limitation and Explicit Consent – Use of data for purposes for which residents has given explicit consent
It is important to understand that before DPDP, owners / residents, etc. had limited legal options if their data was misused. With DPDP, clear accountability, penalties, and grievance mechanisms now exist.
Why DPDP Is Critical for RWAs and Management Committees
A key message from the workshop was: Under DPDP, the RWA, is recognised as Data Fiduciary and is hence legally accountable for the purposes the owner and resident data is being used.
According to the Act, the Data Fiduciary is the entity deciding on the purpose of using the data, and the data processor should abide by it.
What makes this part very significant are the steep penalties, which can go up to ₹250 crore, making awareness and compliance non-negotiable.
RWAs routinely collect and process sensitive digital personal data such as:
- Owner and tenant details
- Phone numbers and email IDs
- Vehicle information
- Visitor entry logs
- Domestic staff data
- ID proofs and documents
While it is the responsibility of the software systems to make sure that data misuse does not happen from their end, it is also the RWAs responsibility to make sure that are ensuring that the software systems are not using the data for any other purposes other than the official purposes of functioning of a housing society, without explicit consent.
An easy way to ensure this, is by choosing a software who does not have any business interest in the resident and owner’s data.
Official Purposes of the Management Committee:
(for which ideally owners/residents data should be used)
1. Sending Official Communication – with respect to Property updates, AGM, Election etc.
2. Providing resident interaction workflows for society operations, limited to service requests, complaints, queries, suggestions, operational intimations (such as move-in and move-out requests, vehicle access requests), and registrations strictly required for society administration (such as registration for participation in society events & activities)
3. Sending Dues and receipts
4. Providing Online payment methods
5. Providing Amenity Booking workflow
6. Reviewing and Updating their Personal Data
7. Visitor / Domestic Staff Notifications and Approvals
8. Publishing Official Documents to all Members e.g., Agenda and Minutes of Meetings, Financial Reports etc.
9. Any other purpose as listed in the ByLaws of the RWA or EXPLICIT consent is received and recorded with proof by the RWA
This is important to understand that there are no further explicit consent needed, if the Data is being used for the above official purposes.
For use of resident and owner data for any purpose outside, the above purposes, it is important to get explicit, documented consent.
What Was Covered in the Workshop
The session was designed to help Management Committee members understand why DPDP matters to RWAs and how it changes accountability in day-to-day operations. The discussion focused on real situations faced by housing societies, explained through practical governance lenses. Below were the points covered:
1. The new role of Management Committees as Data Fiduciaries
2. Understanding the sensitivity of data collected by RWAs
3. Common points of data collection and consent management
4. Purpose limitation and lawful use of resident data
5. Why resident data cannot be used for advertisements or promotions without consent
6. A practical 6-point checklist to make your RWA DPDP-compliant
Several practical scenarios, decision frameworks, and implementation considerations were discussed live during the workshop.
Key Questions from the Q&A Session
Below are some of the most common questions raised by Management Committee members during and after the workshop. Here we have listed the questions and the responses, for reference of management committee members and interested residents.
1. Before DPDP, residents were not taking legal action. Why would they take it now?
Before DPDP, residents had no clear legal framework to pursue misuse of digital personal data. While consumer courts existed, there was no specific law addressing data protection. DPDP changes this by explicitly granting citizens legal rights and a structured grievance mechanism, making enforcement practical and actionable.
2. Is it advisable for RWAs to completely avoid external or promotional use of official apps?
The workshop advised RWAs to first clearly identify their official platform, which residents are mandated to use. On such platforms, mixing official communication with promotions increases compliance and trust risks. If external use is considered, it must be carefully governed and consent-driven.
3. Some apps ask residents to pay to remove ads. Is that compliant under DPDP?
Consent under DPDP must be symmetrical. If a resident can give consent easily, they must also be able to withdraw it just as easily. Making residents pay to withdraw consent is not aligned with DPDP principles.
4. Are digital display boards or lift lobby screens showing ads a DPDP issue?
No. Digital display boards do not involve processing of residents’ digital personal data. Since no personal data is being captured or used, DPDP does not apply to such offline or display-only advertising.
5. How should RWAs handle consent for visitors?
RWAs should ensure visitors are informed about what data is collected, why it is collected, and how long it is retained. Need for clear communication at entry points was discussed in the workshop.
6. Is consent required for raising maintenance bills or storing family member data?
No. Activities such as billing, receipts, official communication, and basic household data fall under lawful use. These are essential functions of an RWA and do not require explicit consent under DPDP.
7. Does sharing outstanding dues (name and amount only) on official WhatsApp groups violate DPDP?
No. Recovering dues is a lawful function of an RWA. However, care should be taken to limit shared information strictly to what is necessary and avoid sharing sensitive personal details.
8. Residents prefer WhatsApp communication. Does DPDP restrict this?
DPDP focuses on the purpose of data usage and explicit consent. Official announcements related to safety, utilities, or emergencies may be shared across channels to ensure awareness. Typically WhatsApp groups are not recognised as an official channel for communication, and residents have the choice to leave anytime. If that is the case, there should not be a problem in using WhatsApp for promotions.
RWAs should, however, clearly define which platform is considered official for governance purposes.
9. Does DPDP apply to manual visitor registers?
DPDP applies only to digital personal data. Manual registers are outside its scope. However, once that data is digitised (for example, entered into software or spreadsheets), DPDP becomes applicable.
10. If a resident does not give consent, will promotional announcements be blocked for them?
Yes, this is the intended design discussed. External or commercial communication should only reach residents who have explicitly consented. The exact mechanisms were discussed as part of future platform enhancements.
11. Does a Data Protection Officer (DPO) need government certification?
No certification is required. The role is about awareness, oversight, and accountability. Participation in DPDP awareness workshops itself contributes to demonstrating organisational intent and preparedness.
12. Should Aadhaar or PAN be collected and stored by RWAs?
The workshop strongly advised avoiding storage of government IDs wherever possible. IDs may be used for verification purposes, but long-term storage significantly increases risk due to the sensitivity of such data.
13. How should RWAs handle biometrics used for entry or facility access?
If biometric data is stored or processed by a third-party device or vendor, that vendor becomes a data processor. RWAs must ensure appropriate contractual safeguards and DPDP alignment with such vendors.
14. Are RWAs or software providers subject to audits under DPDP?
There is no provision for random audits as of now. Audits may occur if a formal grievance is escalated to the Data Protection Board. This reinforces the importance of documentation and responsible data practices.
15. Is AGM approval enough to adopt software, or is individual consent required?
For use of data which are within the official RWA functions, AGM approval is sufficient. DPDP does not mandate individual consent for choosing software, as long as data usage remains within official purposes. For purposes outside the official purposes, explicit, documented consent is needed.
16. Are RWAs required to take consent for all activities conducted by the Management Committee?
Consent is required only when residents’ digital personal data is used beyond essential association functions. Activities not involving personal data fall outside DPDP’s scope.
17. How can RWAs prevent misuse of resident data by society staff?
Training and sensitisation are critical. Staff must understand that casual sharing or misuse of resident data carries serious legal and financial consequences under DPDP.
18. Before DPDP, residents rarely took legal action. Why will they take action now?
Before DPDP, residents had no clear legal framework to challenge misuse of their digital personal data. Complaints were limited to social media or informal escalation because there was no dedicated authority or defined accountability.
With DPDP in force, residents now have clearly defined rights, a formal grievance mechanism, and a Data Protection Board to escalate unresolved issues. This makes legal action structured, accessible, and enforceable—changing resident behaviour significantly.
19. Who is responsible for resident data under DPDP — the RWA or the software provider?
DPDP clearly defines roles:
- Residents are Data Principals
- RWAs / Management Committees are Data Fiduciaries
- Software platforms act as Data Processors
While software providers are responsible for secure processing and infrastructure, RWAs decide why and how resident data is used. Therefore, accountability ultimately rests with the Management Committee, making DPDP a governance responsibility rather than a purely technical one.
20. Do RWAs need to take consent for all resident data such as billing, visitor entry, or family details?
No. DPDP distinguishes between different types of data usage.
For lawful and essential RWA functions—such as maintenance billing, official communication, security, visitor management, and amenity usage—explicit consent is not required. These are contractual obligations of association membership.
Consent becomes necessary only when data is used beyond essential operations.
21. What types of data usage require explicit consent from residents?
The workshop classified data usage into three buckets:
- Lawful Use: Core RWA operations (no consent required)
- Expanded Use: Resident-to-resident interactions such as community discussions or buy/sell listings (explicit opt-in required)
- External Use: Advertisements, promotions, or third-party outreach (strict explicit consent mandatory)
This classification helps RWAs decide when consent is required and when it is not.
22. Are advertisements allowed on official society platforms under DPDP?
Advertisements are not prohibited, but mixing them with mandatory official platforms carries legal risk.
If residents are forced to use a platform for official purposes and are exposed to promotions without clear consent, it can lead to grievances. The workshop strongly advised RWAs to treat their official platform like a school or corporate ERP—clean, focused, and free from commercial clutter.
Offline advertising channels (digital boards, lift posters, flea markets) were highlighted as safer alternatives.
23. How should RWAs handle consent for visitors, domestic staff, and external workers?
Visitors and domestic staff typically do not interact with society apps directly, yet their data is collected.
RWAs should:
- Clearly disclose what data is collected, why, and for how long
- Use physical notices at entry points for visitors
- Collect signed consent forms for domestic staff where required
DPDP allows reasonable time for implementation, but transparency is key.
24. Does DPDP apply to WhatsApp groups used by societies?
It depends on how WhatsApp is used.
If WhatsApp groups are optional and residents can freely join or exit, they are generally not treated as official platforms. However, if WhatsApp becomes the only channel for mandatory communication, DPDP expectations increase.
The workshop emphasized identifying one official platform for governance and treating all others as supplementary.
25. What about sensitive data like Aadhaar, PAN, biometrics, and sale deeds?
The guidance shared was clear:
- Avoid storing Aadhaar or PAN unless legally required
- Use IDs for verification and return them
- Store only minimal portions of sale deeds where possible
- Biometric data should remain with the biometric device vendor, not the RWA or ERP
The principle is data minimisation—collect only what is necessary.
26. How can RWAs prevent data misuse by society staff or internal members?
DPDP places strong emphasis on preventing negligence.
RWAs were advised to:
- Conduct internal awareness training for staff handling data
- Document training and sensitization efforts
- Restrict access to personal data on a need-to-know basis
- Foster a culture where data privacy is taken seriously
Demonstrating intent and preventive action is critical if any complaint arises.
27. Are RWAs or software platforms subject to audits under DPDP?
There is no routine or random audit announced yet.
However, if a resident grievance escalates to the Data Protection Board and is found to be valid, an investigation or audit may be initiated. In case of cyber incidents, obligations under the IT Act also apply, handled primarily by the data processor.
28. Is DPDP compliance a one-time activity?
No. DPDP compliance is ongoing. RWAs must continuously:
- Review data practices
- Update contracts with data processors
- Maintain grievance mechanisms
- Train committee members and staff
The workshop positioned DPDP as a long-term governance shift, not a checkbox exercise.
Why This workshop Was Important
This session marked an important shift:
- Data privacy is no longer optional
- RWAs are now custodians of resident trust
- Early awareness reduces future legal risk
Participants will also receive:
- Attendance certificates as proof of DPDP awareness
- Follow-up FAQs and resources
Closing Note
DPDP is to India what GDPR was to Europe — a fundamental shift in how personal data is collected, processed, and protected.
By attending this workshop, Management Committees took an early and responsible step toward safeguarding resident data, building long-term trust, and future-proofing their associations against regulatory risks.
To support more RWAs and society staff in this transition, additional DPDP awareness workshops are being conducted with limited seats, allowing for deeper discussion and practical guidance.
If you would like to attend an upcoming session, you can check details and register here:
👉 https://go.adda.io/dpdprwaworkshop