In a major data catastrophe, Adarsh Developers has claimed damages of Rs 150 crore after losing six years’ worth of critical business data stored on Amazon Web Services (AWS). The lost data, including financial records, customer details, and operational insights, was allegedly deleted at the root level by individuals linked to AWS and Redington Group, as per an FIR registered at the Cyber Crime Police Station on February 11.
The company’s operations have come to a grinding halt, resulting in estimated daily losses of Rs 5 crore due to payment failures, statutory non-compliance, and business disruptions. AWS reportedly attempted data recovery, but the information remains irretrievable. The Bengaluru City Police’s Cyber Crime Branch has launched an investigation under the Information Technology Act and Bharatiya Nyaya Sanhita.
A Wake-Up Call for Business Leaders
This alarming incident underscores the consequences of inadequate risk management and business impact analysis (BIA). Organizations often treat these processes as compliance checkboxes rather than essential safeguards. However, when a crisis strikes, the failure to prioritize them can result in massive financial and operational losses.
Industry experts point out that a few fundamental measures could have prevented this disaster:
- Maintaining offline backups of critical business data for emergency recovery.
- Restricting root-level access to minimize risks from third-party vendors.
- Implementing strict Standard Operating Procedures (SOPs) for data handling and system modifications.
- Conducting regular audits of vendor responsibilities to ensure clear accountability.
- Enforcing change management protocols to track and control system alterations.
These are not complex solutions—they are basic cybersecurity hygiene. Yet, many companies neglect them until it’s too late.
