Telangana police have accused T-Wallet’s previous vendor, Bengaluru-based Transaction Analysts India Pvt. Ltd. (TAIPL), of:

• illegal withholding of sensitive data belonging to nearly 16 lakh citizens,
• unlawful retention of government-owned data,
• misuse of government-owned data,
• obstruction of the transition process to the newly appointed state agency.

Deputy Director Assistant Commissioner of Police A. Ram Reddy reportedly made these statements in a counter-affidavit filed in response to the anticipatory bail petition filed by Transaction Analysts, as cited in The Hindu’s report.

What is T-Wallet? According to previous MediaNama reporting, the TG government launched T-Wallet in 2017 as the state’s official wallet to facilitate payments for both government and private transactions. Some of the organisations that have integrated T-Wallet are: 

• Greater Hyderabad Municipal Corporation (GHMC),
• Hyderabad Metropolitan Water Supply and Sewerage Board,
• Telangana State Northern Power Distribution Company Limited,
• Telangana State Southern Power Distribution Company Limited, and
• Regional Transport Authority.

Who developed the website: The T-wallet website states that it was:

• “co-branded” by Transaction Analysts (INDIA) Pvt. Ltd;
• and designed and developed by the Telangana government’s Department of Information Technology, Electronics & Communications.

URL of the T-Wallet website: [ Original website | Archived webpage ] 

Why has the issue arisen now? Because the Telangana government appointed a new vendor or operator and asked the Transaction Analysts to transfer customers’ KYC details and wallet funds.

What are Transaction Analysts’ arguments? They argue that Reserve Bank of India regulations prohibit them from transferring customer funds and sensitive KYC data without citizens’ consent. They also argue that transferring the data without legal protection could lead to regulatory action for non-compliance. The company made these arguments in its anticipatory bail petition filed with the Telangana High Court, according to a Deccan Chronicle news report.

What do the RBI regulations say? The company is referring to the 10th Chapter of the Master Direction on Know Your Customer (KYC). According to RBI instructions on Secrecy Obligations and Sharing of Information, regulated entities are required to maintain the secrecy of customer information when specified in their contracts. 

However, companies can share user information under the following circumstances: 

• the expressed or implied consent of the customer,
• a legal compulsion,
• a duty to disclose in the public interest, 
• when the disclosure is in the interest of the regulated entity (RE). 

Read more about RBI’s Direction here: [ RBI’s website | PDF ]

The Transaction Analyst also stated that it is willing to share the data if the courts grant it protection. While granting the accused anticipatory bail on May 15, Justice Madavi Devi asked the company to share the data within one week.

What are the Telangana government’s arguments? According to their agreement, when the contractual agreement ends (i.e., May 31, 2025), the company will be required to:

• transfer complete control of data, 
• source code, 
• systems, 
• credentials and 
• related infrastructure to the government 

According to the counter-affidavit filed by Telangana police officer A. Ram Reddy, cited by The Hindu, the state government sent multiple notices to the private vendor, but the vendor allegedly has not submitted the data. 

Core allegations against Transaction Analysts: The Commissioner of Electronic Services Delivery (ESD) or Meeseva filed a case against the Transaction Analyst company under the following charges:

Under the Information Technology Act, 2000: 

• Punishment for identity theft — Section 66C of the IT Act. 
• Penalty for Breach of confidentiality and privacy — Section 72 of the IT Act. 
• Penalty and compensation for damage to a computer, computer system, etc — Section 43 of the IT Act. 
• Government authority to designate a system as a “protected system” and punish if it’s accessed without authorization — Section 70 of the IT Act.

Under Bharatiya Nagarik Suraksha Sanhita, 2023: 

• Criminal breach of trust — Section 316 of BNSS
• Cheating — Section 318 of BNSS

Who are the accused? 

• Katuri Srinivas Rao, CEO of Transaction Analyst,
• P. Kiran Kumar, Project Manager,
• M. Srinivasulu, Chief of Projects (arrested on April 25).

How to track this case? The case is pending before Justice J Sreenivas Rao in the Telangana High Court. You can track the case using the case number CRLP/6513/2026 on TG HC’s e-courts website: [Link] 
Hearing date: May 6, 2026 (e-court records).

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