Kochi: The Kerala High Court has observed that the State government committed serious procedural lapses while entering into the controversial agreement with US-based data analytics firm Sprinklr during the COVID-19 pandemic, but refrained from ordering further legal action, citing the extraordinary circumstances that prevailed at the time.
A Division Bench comprising the Chief Justice and another judge made the observation while disposing of a batch of petitions challenging the legality of the 2020 agreement, which had triggered widespread political debate and public concern over data privacy and administrative propriety.
In its judgment, the High Court noted that the contract was executed without adhering to mandatory government procedures. The court pointed out that approvals from key departments, including the Law and Finance Departments, were not obtained and that the agreement was not placed before the Cabinet as required under the Rules of Business. The bench described this as a “serious lapse in procedure”, stressing that established administrative norms cannot be casually bypassed, even during emergencies.
At the same time, the court accepted the State’s explanation that the agreement was entered into at a time when the government was grappling with an unprecedented public health crisis. The judges observed that the pandemic demanded swift decision-making and that the State was under immense pressure to manage and analyses vast amounts of health-related data in real time. In this context, the court found no material to suggest malafide intent or personal gain behind the decision.
Addressing concerns over data security, the High Court recorded the government’s submission that sensitive personal data of COVID-19 patients and quarantined individuals were not handed over to Sprinklr. According to the State, the company merely provided a software platform for data analysis, while full control and ownership of the data remained with the government. The court also noted that the agreement has since been terminated and that there was no evidence of data misuse or leakage.
Given these factors, the bench concluded that reopening the issue or issuing further directions would serve no practical purpose. However, it made it clear that the findings regarding procedural violations should act as a cautionary note for the government in future dealings, especially when entering into contracts involving sensitive public data.
The judgment effectively brings closure to one of the most contentious administrative decisions taken during the COVID-19 period in Kerala. While granting relief to the State from further legal scrutiny, the High Court has sent a strong message underscoring the importance of transparency, accountability and adherence to rules, even in times of crisis.