In a shocking report, The New Indian Express recently claimed that India’s Income Tax Department is leveraging passenger data collected through the DigiYatra app to identify potential tax evaders. The report has raised concerns about privacy, surveillance and the scope of government data use, a claim that has been disputed by Suresh Khadakbhavi, CEO of DigiYatra.

DigiYatra, a Ministry of Civil Aviation led initiative, was launched to simplify and streamline air travel by making it seamless and paperless. This process uses facial recognition technology. The app captures passengers’ biometric data, travel details and ID documents to facilitate a seamless airport experience. However, recent reports suggest that the IT department has started cross-referencing DigiYatra’s passenger data with income tax filings to flag anomalies – particularly targeting high-spending passengers whose declared income Does not justify their expenditure.

What does the CEO of DigiYatra have to say?

Khadakbhavi’s strongly worded response described the allegations as baseless. They have clarified that DigiYatra does not store any personally identifiable information (PII) in the central repository. Instead, the data is stored locally on passengers’ devices, aligning with the Self-Sovereign Identity (SSI) framework. This approach ensures data security, privacy, and scalability – making it impossible for the government or any other entity to directly access this information.

Highlighting the app’s milestone of crossing 9 million active users in 2024, Khadakbhavi said, “Such baseless articles eclipse DigiYatra’s achievements.” According to the CEO of DigiYatra, the privacy-first design of the app keeps travelers safe from any possible misuse of their data.

But is there a flaw here?!

Although the privacy claims are reassuring, DigiYatra’s system of verifying the identity of passengers at airports raises some questions. If no central repository exists, how does the system ensure seamless data retrieval for identity verification during check-in? The process involves users uploading Aadhaar details or passport information, a selfie and their boarding pass on the app, which then generates a unique QR code for airport use. Critics argue that some form of data cross-verification should occur behind the scenes, leaving room for potential privacy vulnerabilities.

“The stupidity of the regime?”

The controversy has also reignited a broader debate about data use and governance in India. DigiYatra was criticized in a widely shared tweet, comparing it to previous measures such as demonetisation, claiming that such initiatives largely targeted small businesses while ignoring systemic issues such as loan fraud and government-enabled corruption. Focuses on catching violators on a large scale. According to the tweet, the government remains “naive” about the real sources of black money generation, which often originates from big-ticket loans for government contracts.

If true, the allegations mark a significant change in how travel data can be weaponized for tax enforcement. The IT department is reportedly planning to continuously screen international travellers, especially those whose spending habits are not in line with their reported income. While this is consistent with government-wide efforts for accountability and transparency, it also raises ethical questions about the scope of surveillance.