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Despite eight years since GST implementation, no official government statistics exist on registered GST Practitioners, even though the legal framework and registration process are well-established. However, industry data reveals approximately 1.3 million tax professionals (formal and informal) now serve India’s 15.2 million GST taxpayers, with the consulting market estimated at $7+ billion annually. The sector is dominated by 159,557 practicing Chartered Accountants alongside hundreds of thousands of unregistered consultants, growing at 8-11% annually since 2017.

This data gap contrasts sharply with comprehensive government reporting on GST revenue and taxpayer statistics. While the GST Network tracks registrations and collections meticulously, practitioner enrollment numbers remain unpublished across all government portals, reports, and statistical releases. Understanding this consulting ecosystem requires piecing together data from professional bodies like ICAI, market research firms, and industry analyses rather than relying on a single authoritative source.

Official GST Practitioner data: a conspicuous absence

The research revealed a striking finding: registered GST Practitioner statistics are not publicly available from any government source, despite the existence of a formal enrollment framework under Section 48 of the CGST Act, 2017. The GST Portal maintains a searchable database of individual practitioners through its “Find a GST Practitioner” tool, but aggregate enrollment numbers are never published.

Extensive searches across the GST Portal, GST Council, NACIN (National Academy of Customs, Indirect Taxes and Narcotics), CBIC (Central Board of Indirect Taxes and Customs), Ministry of Finance, and Press Information Bureau found detailed information about the registration process, eligibility criteria, and examination requirements—but zero statistics on total enrollments, state-wise distribution, or historical growth trends. This contrasts dramatically with GST taxpayer data, which is regularly updated and published with comprehensive breakdowns.

The GST Practitioner framework requires applicants to pass a NACIN-conducted examination within two years of enrollment, with exams held twice yearly since 2018. However, neither exam candidate numbers nor pass rates are publicly disclosed. The system recognizes multiple professional qualifications as eligible, including Chartered Accountants, Company Secretaries, Cost Accountants, commerce/law graduates, and retired government officials—yet no consolidated count exists across these categories.

Possible explanations for this data gap include separate tracking by Central and State authorities, making aggregation difficult, privacy considerations around individual practitioner data, administrative separation between enrollment and post-exam certification stages, and limited public interest compared to revenue collection metrics that dominate GST reporting.

Chartered Accountants: the backbone of formal GST consulting

The Institute of Chartered Accountants of India (ICAI) provides the most concrete professional data available. As of February 2025, ICAI reports 407,629 total members, making it the world’s largest or second-largest accounting body. Of these, 159,557 hold Certificates of Practice (39.1%), representing the core of formal GST consulting capacity.

These practicing CAs operate through 98,967 registered firms: 68,125 proprietary firms (68.8%), 27,051 partnership firms/LLPs (27.3%), and 3,791 sole practitioner firms (3.8%). While ICAI does not publish specific breakdowns of members by practice area, industry analysis suggests 70-80% of practicing CAs provide tax services including GST compliance, returns, audits, and advisory work.

ICAI’s response to GST implementation has been comprehensive. The organization conducted training for over 2,000 government officers in GST programs during 2023-24 alone, delivered 160+ batches of its Certificate Course on GST since 2017, and organized 1,432 CPE (Continuing Professional Education) programs on GST in 2023-24—the largest topic category. Publications include 262+ editions of GST Updates and 57+ e-newsletter editions.

The CA profession has experienced strong growth since GST implementation: 31,946 new CAs qualified in 2024, the highest number since COVID-19, contributing to annual membership growth of 7-8%. ICAI’s ambitious target of 30 lakh (3 million) CAs by 2047 would require 130,000 new qualifications annually—four times the current rate—indicating recognition of massive future demand.

Government recognition of CAs in the GST ecosystem is formal and extensive. CAs are specifically authorized as representatives under Section 116(2) of the GST Act, 2017, eligible to conduct GST audits, and required to certify annual returns (GSTR-9C) for businesses exceeding ₹5 crore turnover. Hon’ble Vice-President of India at GloPAC 2023 specifically recognized CAs’ role in transforming GST from being perceived as complex to becoming a “Good and Simple Tax.”

Market size estimates: a $7+ billion industry serving 15 million taxpayers

Industry research and market analysis provide estimates where government data is absent. The Indian tax consulting market was valued at $6.5 billion (₹42,500 crore) in 2017, growing 9% to $7.1 billion in 2018 primarily due to GST implementation. A 2017 Consultancy in analysis projected that serving approximately 9 million companies under GST jurisdiction would require 1.3 million new tax consultants.

By 2024-25, the Big Four accounting firms alone (Deloitte, EY, PwC, KPMG) generated combined revenues of ₹38,800 crore (~$4.7 billion) in FY24, projected to exceed ₹45,000 crore (~$5.4 billion) in FY25. Their consulting services, including tax advisory, accounted for over ₹25,000 crore of this total. Individual firm performance shows remarkable growth: EY India reported ₹13,400+ crore (16-17% growth), Deloitte ₹10,000 crore (29% growth), PwC ₹9,200 crore (22% growth), and KPMG ₹5,900-6,200 crore (5.5-10% growth).

The broader India consulting market reached $13 billion in 2024 and is projected to hit $24 billion by 2031 at an 11% CAGR, according to 6Wresearch. Within this, the GST-related technology market is also expanding rapidly: the GST reconciliation software market was valued at $1.5 billion in 2024 with projections of $4.2 billion by 2033 (15.2% CAGR).

Current demand indicators are substantial: India now has over 15.2 million active GST taxpayers as of May 2025, up from 7.8 lakh in the initial 23 days after GST launch in July 2017—representing 19x growth or approximately 9% CAGR over eight years. Monthly GST collections averaged ₹1.84 lakh crore in FY 2024-25, with the highest-ever collection of ₹2.10 lakh crore in April 2024 and second-highest of ₹2.01 lakh crore in May 2025.

The informal consulting sector: an estimated 700,000-900,000 professionals

Beyond registered CAs and formal firms lies a substantial informal consulting ecosystem. Industry estimates suggest 700,000-900,000 informal/unregistered consultants provide GST services, primarily to MSMEs and small businesses in Tier-2 and Tier-3 cities where CA penetration is lower.

This estimate derives from gap analysis: if the total consultant requirement is 1.3 million (2017 industry projection) and formal practitioners number 400,000-450,000 (including 159,557 practicing CAs, Big Four employees, and mid-sized firm professionals), the difference suggests 700,000-900,000 informal practitioners. These include bookkeepers offering GST services, accountants without CA qualification, tax consultants with commerce/law degrees, and part-time advisors.

Market structure thus divides into organized and unorganized sectors. The organized sector includes the Big Four, mid-sized domestic firms (Grant Thornton India, BDO India, Nangia & Company, Dhruva Advisors, BMR Advisors), registered CA firms, and formally enrolled GST Practitioners. The unorganized sector comprises individual consultants, small accounting services, and regional practitioners operating below the registration threshold.

Business directory data supports this scale: IndiaMART lists over 1,000 GST consultant service providers across major cities including Delhi, Mumbai, Bengaluru, Pune, Chennai, Thane, Hyderabad, Ahmedabad, Kolkata, Jaipur, and Gurugram. However, this represents only digitally-listed providers and likely undercounts the total informal market.

The GST registration threshold (₹20 lakhs for services) and composition scheme (₹50 lakh threshold) allow many small consultants to operate without GST registration themselves, contributing to difficulty in quantifying this segment. Many serve micro-enterprises and individual proprietors who require basic compliance support rather than sophisticated advisory services.

## Growth trajectory: 173% revenue increase driving explosive consultant demand

GST implementation on July 1, 2017 created an immediate demand shock. The first year saw a 50% increase in indirect taxpayers, adding 3.4 million new registrants beyond those migrating from the old VAT/service tax system. Additionally, 1.7 million businesses below the threshold limit registered voluntarily to claim Input Tax Credit benefits.

Year-by-year GST revenue growth demonstrates market expansion:

| Financial Year | Gross GST Collection | Y-o-Y Growth |

|—|—|—|

| 2017-18 | ₹7.41 lakh crore | Baseline (9 months) |

| 2018-19 | ₹11.77 lakh crore | 59%* |

| 2019-20 | ₹12.22 lakh crore | 3.8% |

| 2020-21 | ₹11.37 lakh crore | -7.0% (COVID impact) |

| 2021-22 | ₹14.83 lakh crore | 30.5% |

| 2022-23 | ₹18.08 lakh crore | 21.9% |

| 2023-24 | ₹20.18 lakh crore | 11.6% |

| 2024-25 | ₹20.13 lakh crore | 9.4% (est.) |

*Not directly comparable due to partial first year

This represents 173% growth from 2017-18 to 2023-24, with collections stabilizing at sustained 9-11% annual growth rates. The cumulative total exceeds 162 crore GST returns filed since implementation, each requiring professional preparation or review for most businesses.

Professional services sector response was immediate and aggressive. In 2017-18, the Big Four expanded rapidly: Deloitte added 20 partners from KPMG to reach 75 tax advisory partners, EY deployed 125 partners in tax advisory, KPMG maintained 250 advisory partners with plans for 15-20 additions, and PwC operated 113 partners. By 2024-25, Big Four firms planned to hire 100,000 people collectively, with Deloitte targeting 40,000-50,000 new employees, PwC adding 30,000 over five years, and KPMG recruiting 20,000 over 2-3 years.

GST has fundamentally reshaped CA practice. Pre-GST, service tax applied only to the services sector; post-GST, indirect tax compliance affects virtually all businesses with turnover above ₹20 lakhs. Industry data indicates GST now represents 30-40% of practice revenue for many CA firms, compared to the relatively minor role of service tax previously. All 98,967 registered CA firms now offer GST services as standard.

Geographic concentration: the top 5 states account for 54% of collections

State-wise GST collection data for FY 2024-25 (till February 2025) reveals extreme geographic concentration:

| State | GST Collection | YoY Growth | % of Total |

|—|—|—|—|

| Maharashtra | ₹3,28,321 crore | 12% | 21.5% |

| Karnataka | ₹1,46,066 crore | 10% | 9.6% |

| Gujarat | ₹1,24,654 crore | 10% | 8.2% |

| Tamil Nadu | ₹1,19,320 crore | 8% | 7.8% |

| Haryana | ₹1,08,714 crore | 16% | 7.1% |

| Uttar Pradesh | ₹1,02,256 crore | 10% | 6.7% |

| Delhi | ₹70,863 crore | 17% | 4.6% |

| West Bengal | ₹61,065 crore | 7% | 4.0% |

| Telangana | ₹57,586 crore | 6% | 3.8% |

| Odisha | ₹55,119 crore | 11% | 3.6% |

The top 5 states alone account for 54% of national GST collections, indicating where the highest density of consulting demand exists. Fastest-growing states include Haryana (16%), Delhi (17%), and Bihar (16%), suggesting emerging markets for consultant expansion.

Taxpayer distribution by state (July 2020 data) shows Maharashtra leading with 1.56 million taxpayers (12.6%), followed by Tamil Nadu (~1.1 million, 8.9%), Uttar Pradesh (~1.05 million, 8.5%), Gujarat (~1.0 million, 8.1%), and Karnataka (~950,000, 7.7%). These concentrations correlate directly with economic activity: Maharashtra hosts financial services and manufacturing hubs in Mumbai and Pune, Karnataka centers IT services in Bangalore, Gujarat dominates manufacturing and chemicals in Ahmedabad and Surat, Tamil Nadu leads in automobiles and textiles around Chennai, and Haryana benefits from the Gurugram-Delhi NCR corporate cluster.

Metropolitan concentration is pronounced. Tier-1 cities—Mumbai, Bangalore, Delhi-NCR, Chennai, Ahmedabad, Pune, Hyderabad—host the vast majority of Big Four offices, mid-sized consultancies, and leading CA firms. However, 15% of new Global Capability Center (GCC) mandates shifted to Tier-2 cities in 2023-25, with Pune, Ahmedabad, and Chandigarh seeing increased GST consultant presence driven by cost arbitrage.

Regional practice characteristics differ significantly. North India is projected to capture the largest accounting software market share by 2030 with hubs in Delhi, Gurugram, Noida, and Chandigarh. West India, particularly Mumbai and Gujarat, focuses on manufacturing and trading. South India concentrates on IT services (Karnataka, Telangana) and automobile manufacturing (Tamil Nadu) with strong compliance culture. East and Central India represent smaller but growing markets, with Kolkata, Jharkhand, and Odisha showing steady development.

Key growth drivers: complexity, formalization, and digitalization

Regulatory complexity remains the primary demand driver. GST features multiple tax slabs (0%, 5%, 12%, 18%, 28%, plus cess), frequent rate changes and amendments, e-invoicing mandates (extended to ₹5 crore+ businesses in January 2025), Input Tax Credit reconciliation requirements, and the dual CGST/SGST/IGST structure. Compliance obligations include monthly/quarterly returns (GSTR-1, GSTR-3B), annual returns and reconciliation statements (GSTR-9, GSTR-9C), e-way bill generation, and Reverse Charge Mechanism compliance.

Economic formalisation accelerated dramatically post-GST. The 50% increase in indirect taxpayers in the first year, adding 3.4 million registrants, demonstrates the shift from informal to formal economy. 1.7 million voluntary registrations by sub-threshold businesses seeking Input Tax Credit benefits further indicates formalization incentives. Current estimates suggest 31% formal payroll under social security definitions, 53% under GST net definitions, with 13% of estimated 71 million non-agriculture enterprises now registered under GST.

Digital transformation creates continuous consulting demand. The end-to-end digital GST system (GSTN platform), e-invoicing, e-way bills, automated return filing, AI/ML-based analytics, and biometric Aadhaar authentication require professional implementation support. Technology consulting commands 51.63% of the accounting professional services market, covering ERP migration, GST software integration, cloud-based accounting solutions, and cybersecurity advisory.

Inter-state trade facilitation expanded significantly. India’s internal trade in goods and services represents approximately 60% of GDP, with inter-state trade volumes significantly exceeding pre-GST estimates. The unified national market eliminates state border checks, reduces logistics costs and transit times, but requires multi-state registration support, place of supply determination, IGST vs. CGST/SGST optimization, and supply chain restructuring—all consultant-intensive activities.

SME and startup growth drives middle-market consulting. Threshold-exempt businesses increasingly opt for voluntary registration, startups require GST compliance from inception, and government initiatives (Startup India, Make in India) accelerate business formation. India’s digital economy is projected to reach $1 trillion by 2025, creating continuous demand for registration, initial compliance, tax planning, software selection, and training services.

Global Capability Centers (GCCs) and MNCs represent the high-value consulting segment. India hosts 1,580 GCCs (FY 2023) generating $46 billion in exports, projected to reach $110 billion by 2030, with 24 centers exceeding $1 billion revenue in FY 2024. These require sophisticated services: “capability-center-as-a-service” models, transfer pricing and GST integration, dual compliance (India plus home country), and shared services accounting.

Government enforcement intensification creates defensive consulting demand. Data analytics and AI for tax evasion detection, fake Input Tax Credit and shell company crackdowns, registration suspensions/cancellations, mandatory e-invoicing expansion, and integration with ICEGATE (customs) and FASTag (logistics) drive demand for compliance audits, GST litigation and dispute resolution, voluntary disclosure and rectification, and representation before authorities.

Future outlook: 8-11% CAGR through 2030 with technology disruption

Market growth projections remain robust across multiple segments. The India accounting professional services market is forecast at 8.5% CAGR through 2030, with GST reconciliation software growing at 15% CAGR and technology consulting for GST at 8.41% CAGR. GST collections are projected to reach ₹22+ lakh crore in FY 2025-26 with monthly averages of ₹1.8-2.0 lakh crore and continued 7-10% annual growth.

Emerging opportunities include GST 2.0 reforms (proposed rate rationalization merging 12% and 18% slabs, simplified return filing systems, enhanced automation and AI integration, expanded product coverage), new service areas (ESG and sustainability reporting integration, blockchain for GST compliance, predictive analytics for tax planning, cross-border e-commerce taxation), and geographic expansion into Tier-2/Tier-3 cities with rural formalization initiatives and regional language support services.

Challenges ahead include market saturation risk from cloud-based DIY software (Tally, Zoho, QuickBooks) priced under ₹12/month, commoditization of routine compliance services, and price pressure on low-complexity assignments. Talent requirements demand tech-savvy tax professionals, continuous training on regulatory changes, and multi-disciplinary skills combining tax, IT, and data analytics. Regulatory uncertainty from frequent policy changes, state-level implementation variations, and litigation backlogs creates planning difficulties.

Technology disruption potential is significant. In 2024, 44% surge in remote consulting occurred with 58% of advisory interactions now virtual. 21% of firms are integrating AI for GST compliance automation. The accounting software market shows rapid cloud adoption, with North India projected to lead market share by 2030 due to increased IT spending. Quick commerce and e-commerce are driving indirect tax complexity, requiring sophisticated technology solutions.

Professional supply constraints may emerge. To reach ICAI’s target of 30 lakh (3 million) CAs by 2047, the institute needs 130,000 new qualifications annually—more than four times the current rate of 31,000-32,000. Current growth of 7-8% annually is insufficient, suggesting either supply constraints will limit formal consulting capacity or alternative professional pathways (Company Secretaries, Cost Accountants, specialized GST certifications) will fill the gap.

Conclusion: a massive sector operating in statistical shadows

India’s GST consulting sector represents a $7+ billion industry employing approximately 1.3 million professionals (formal and informal) serving 15.2 million taxpayers, yet remarkably lacks official government enumeration. The absence of published statistics on registered GST Practitioners despite a formal regulatory framework represents a significant data gap in understanding India’s professional services economy.

What we know with confidence: 159,557 Chartered Accountants hold Certificates of Practice (February 2025) and most provide GST services through 98,967 registered firms. The Big Four generate approximately $5.4 billion annually (FY25 expected) with sustained 20%+ growth. ICAI delivered 1,432 GST-focused CPE programs in 2023-24 alone, trained over 2,000 government officers, and conducted 160+ Certificate Course batches since 2017. GST taxpayer registrations grew 19x from 780,000 (July 2017) to 15.2 million (May 2025), while collections increased 173% from ₹7.4 lakh crore (2017-18) to ₹20.2 lakh crore (2023-24).

What we estimate with reasonable confidence: Total consulting professionals number 1.3 million (2017 industry projection remains relevant), split between 400,000-450,000 formal practitioners (CAs, Big Four, organized firms) and 700,000-900,000 informal consultants serving smaller businesses. The market grew 18% from 2016-2018 during GST implementation and continues at 8-11% CAGR. Geographic concentration mirrors economic activity, with top 5 states (Maharashtra, Karnataka, Gujarat, Tamil Nadu, Haryana) accounting for 54% of collections.

Critical data gaps persist: exact numbers of registered GST Practitioners, state-wise practitioner distribution, NACIN exam participation and pass rates, formal vs. informal market segmentation, year-by-year historical practitioner growth, and revenue contribution by consulting category (compliance vs. advisory vs. litigation). These gaps prevent precise workforce planning, educational program design, or regulatory policy optimization.

The sector’s evolution follows four distinct phases: implementation chaos with massive consultant hiring (2017-2019), COVID disruption accelerating digitalization (2020-2021), stabilization with technology integration and compliance maturity (2022-2024), and the emerging GST 2.0 era featuring AI/ML adoption, advisory-led services, and Tier-2 expansion (2025+). Each phase has reshaped professional requirements and market structure.

For businesses, this research confirms both opportunity and uncertainty: demand for GST services remains strong and growing, supported by regulatory complexity, economic formalization, and digital transformation imperatives. However, commoditization threatens routine compliance services as DIY software improves, while high-value advisory work requires increasingly sophisticated multi-disciplinary capabilities. The informal sector serves a critical market function but operates with minimal visibility, quality standards, or professional accountability.

For policymakers, the data gap is problematic. Without accurate practitioner counts, authorities cannot effectively plan capacity building initiatives, assess service quality and coverage, identify underserved geographic areas, or evaluate whether professional supply meets compliance demand. The contrast between meticulous GST revenue tracking and complete absence of practitioner statistics suggests a policy blind spot.

Obtaining reliable data would require: filing RTI (Right to Information) applications with GSTN, CBIC, and NACIN; searching Lok Sabha/Rajya Sabha parliamentary question databases; conducting comprehensive ICAI member surveys on practice areas; analyzing individual state GST department registries; or commissioning primary research through market surveys. Until such efforts occur, India’s GST consulting sector remains statistically invisible despite its critical role in the country’s tax administration infrastructure.

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This article is written by the iPleaders team.

Introduction

AI is not just moving fast but changing shape. You will not find SaaS platforms just offering handy tools that help users click through the task. What seemed futuristic is in the market now. What we are talking about now is agentic AI systems that set goals, make decisions, and act with minimal human oversight.

For instance, it was found by the Irish Data Protection Commission in November 2023 that Microsoft Ireland breached Articles 12 and 17 of the GDPR. Why? They mishandled erasure requests properly and failed to inform complainants of their right to a judicial remedy. If giants like Microsoft can miss on complying with something as fundamental as consent, erasure, and transparency, then this is a wake-up call for every platform building or deploying AI   

Yet, enthusiasm is hard to miss. In a survey conducted by PwC in 2025, it was found that about seventy-three per cent of executives believe that AI agents are going to give them tough competition in the coming years. And not to miss, about fifty-seven per cent are already experimenting with the in customer service, sales, and IT. But where does the issue lie? Many companies are racing without a clear framework.   

This autonomy in AI promises speed, creativity, and scale, yet heightens legal exposure around consent, profiling, fairness, and oversight. As laws like the GDPR, CPRA (California), and India’s Digital Personal Data Protection Act, 2023 begin to intersect with agentic AI’s capabilities, one question becomes urgent: are today’s laws enough? And more practically, what compliance frameworks can SaaS platforms adopt now to stay ahead?

Regulatory landscape

The rise of Agentic AI across SaaS platforms has created a real gap between technology and the law. The speed of regulatory reforms is not matching the autonomy of AI. Yes, we do have frameworks that offer some guidance. But things get blurry very quickly when it comes to self-learning and decision-making systems.   

General Data Protection Regulation (GDPR)

Let’s start with GDPR, because when we talk about AI-driven decision-making, it is still the gold standard. Starting with Article 5, which mandates principles like transparency and data minimisation. The basic need, like a lawful consent, is laid down by Article 6. But the real game-changer is Article 22. This gives the right not to be subject to decisions made solely by automated processing if those decisions have a significant effect.      

This provision was central in SCHUFA (C-634/21, CJEU, 2023), the court ruled that automatically generated credit scores constitute “automated individual decision-making” under GDPR Article 22 when third parties rely on them for contractual decisions. This highlights the need for transparency and safeguards in automated decision processes affecting individuals’ legal rights. Similarly, in Dun & Bradstreet Austria GmbH (C-203/22, CJEU, 2025), the court clarified that companies must provide “meaningful information” about the logic of automated assessments under Article 15, even when trade secrets are invoked. For SaaS firms deploying agentic AI, these rulings confirm that opacity in decision-making is a legal liability, not just a reputational one.

California Privacy Rights Act (CPRA)

California’s CPRA gives consumers the right to opt out of automated profiling where it impacts areas like employment or housing. Enforcement is also tightening. In 2022, Sephora was fined US$1.2 million under CCPA for failing to honour global privacy control signals. While not directly about AI, the case underscores regulators’ seriousness about data rights, which will extend to autonomous AI profiling as CPRA’s rule-making on Automated Decision-Making Technology (ADMT) advances.

India’s Digital Personal Data Protection Act, 2023

And then we have the DPDP Act of India, A very consent-centric law. It provides that people must know why their data is being collected (Article 5). With regard to consent, it provides that the consent must be free, informed and specific (Article 6). It also put responsibilities on the companies (or “data fiduciaries”) around security, accuracy and grievance redressal. 

But something is missing. What?

The law does not have explicit rules on automated decision-making or profiling, unlike GDPR or CRPA. This creates a grey zone for SaaS providers in India, raising compliance uncertainty.

Agentic AI use-cases in SaaS & associated risks

With the ability to make decisions on its own, Agentic AI is popping up everywhere on SaaS platforms. This may look like a huge win: faster workflow, smarter insights and fewer manual processes. 

But there is a flip side. What?  

The more the system is autonomous, the bigger the privacy and compliance headaches. Let’s see some examples.

EdTech: GoGuardian Beacon

An AI-driven student safety platform, GoGuardian Beacon, is used by over 10,000 schools and monitors about 25 million students across the US. It analyses online activities to detect and prevent bullying, self-harm and catch other distress indicators. Since its launch in 2020, it has prevented about 18,623 students from physical harm.

But critics have something else to say. They claim that there is a lack of transparency in this system, which often works with explicit consent from students and parents. 

In fact, this is more dangerous for the LGBTQ+ students, as this could unintentionally expose their highly personal data.

CRM platforms: Obsidian security’s oversight on AI tools

Corporations are plugging GenAI tools into their CRM platforms. But Obsidian Security has flagged pretty serious risks. What risks are we talking about? These tools run with little to no oversight. It can tap into sensitive data without a proper guardrail. And this data may extend up to personal financial details and healthcare reports. 

This issue gets worse because many CRM systems do not have a clear privacy policy and strong governance measures.  And because of this, many big problems may occur.

If the real-time monitoring and strict controls do not come into place, then what started as a move to boost efficiency will turn into a costly liability.

E-commerce shopping agents and personalisation risks

Did you know that agentic-AI is deeply integrated into the operations of retail giants like Amazon and Walmart?

Approx thirty-five per cent of the revenue is driven by the product recommendations given by personalised engines of Amazon, which works as a quite powerhouse. The backend agent that a built on SageMaker is also handling the pricing model, managing fulfilment and customer segmentation. 

Coming to Walmart, its Luminate platform uses AI agent to manage restocking and personalise the shopping experience in real time.   

But the concerning part is that customers are often not informed of how and why their data is being used. So many times, they are unaware that they are being monitored. This raises concerns regarding some dangers that occur because of this invisible personalisation, like profiling, tracking and segmentation of people without consent.      

The problem is not agentic AI itslef, but the way it is governed. To determine whether it is a powerful asset or a liability, three factors are responsible: consent, culture and communication. 

SaaS platforms, when skipping consent checks, neglect explainability or blur data boundaries, risk compliance failure and lose user trust. Every autonomous agent needs a guardrail, designed around this purpose, the type of data it touches and the impact it has on people.

Compliance framework: a risk-based approach

It is quite clear from the examples that the real problem is launching AI without thinking through the risks. Compliance is about giving innovation a backbone with structure and accountability. That is why a risk-based mindset is a must.

Data Protection Impact Assessments (DPIAs)

A DPIA is basically a privacy health check that helps to spot risks before any AI tool launches. Especially those that interact with personal and behavioural data. Skipping it would be a trouble.

Let me take you through a case that happened in 2020, where Vodafone was fined by the Italian Data Protection Authority for about 12.25 million Euros. 

But what did it do?

It launched an AI-powered marketing campaign without conducting a DPIA. It also overlooked the consent, data handling and opt-out options, and guess what? They paid the price. 

What is the smarter approach? You should not ask if you need a DPIA. Ask why one is not on the table? 

Giants like Microsoft even say it is a good practice, even when not legally required.  In fact, the regulators in the Gulf are starting to make them mandatory for high-risk AI. 

From policy to practice

Of course, even on paper, audits go so far. These AI systems need to be built with guardrails. Let’s see one vulnerability case of Slack that happened in August 2024. A security researcher disclosed a vulnerability in the AI toolset. It was shown how a prompt injection could trick its AI into phishing employees and exposing their sensitive data.   

And here is where red teaming and audit trails come into play. Red teaming is stress-testing AI before launch and an audit trail is logging every action for accountability. Hence, the message is clear: compliance is not an afterthought but a part of building a trustworthy AI system from day one.

Policy and governance measures: building trustworthy AI

Good engineering controls are important, but if there is no accountability, then they will not go very far. Hence, governance is not an option, but it works as the foundation of trust of people in AI. 

The role of data protection officers and ai ethics governance

GDPR mandates those companies handling a large amount of personal and sensitive data to appoint a Data Protection Officer (DPO) under Article 35. But companies are moving a step further. To keep ethical oversight front and centre, companies are appointing an AI ethics officer or setting up responsible AI councils, since AI make more complex and high-impact decisions.  

Leading companies in AI governance

Microsoft 

Microsoft has embedded Responsible AI leads in their production teams. They collaborate with the Office of Responsible AI to flag risks, address ethical concerns and keep compliance on track.

Salesforce 

Salesforce rolled out a tiered AI governance framework that includes “red flags” review boards to check and prevent AI-related risks. 

Zoom 

Zoom has launched an AI companion with granular admin controls to tackle unauthorised AI tools. This allows businesses to check who uses AI and how.  

SAP

SAP took a multi-layered approach, combining an AI Ethics Advisory panel, an AI Ethics Office and an AI Ethics Board. These all worked together to ensure comprehensive oversight of AI initiatives. 

Why does it matter?

These measures bridge the gap between the deployment of AI and staying accountable. No doubt, appointing a DPO meets legal obligations, but appointing an AI Ethics Officer reflects strategic foresight.

Governance is not just a safeguard, but it is a driver of responsible innovation when legal, engineering and product teams collaborate early.

The path ahead: preparing for future scrutiny

Privacy issues in agentic AI are not just a prediction; it is already happening. We are seeing these real risks play out, happening from classrooms to hospitals to customer service desks. This means clear rules and strong oversight are no longer options, specifically in sensitive cases where the impact on people’s lives is highest.     

EU AI Act: a new regulatory landscape

The EU Artificial Intelligence Act came into effect on 2nd of August 2024. It has categorised AI tools such as customer support chatbots or software that detects emotions as “high risk” (Article 6(2) and Annex III).      

If any SaaS company uses such tools without proper checks and human oversight, from 2nd August 2026. In that case, it will be fined up to thirty-five million Euros or seven per cent of their global revenue, whichever is higher.  

The message is simple: if any decision made by AI affects the jobs, well-being and opportunities, then it is your duty to explain how it works and why. These are not just restrictions but also give a new baseline for building digital trust.  

India’s DPDPA: emerging oversight

India is not behind and is moving in the same direction with the DPDP Act 2023. We are expecting detailed rules and regulations by the Ministry of Electronics and Information Technology by 28th September 2025. The earlier draft released in January 2025 already calls for explicit consent, clear notices, quicker breach reporting, and shorter data retention periods. However, the Act does not yet tackle automated decision-making head-on. But this helps build a platform for tighter AI regulation in finance, healthcare and edtech.  

Strategic implications for SaaS providers

Now, it is high time for SaaS providers to stop seeing the EU as normal and regional rules, but should now start using and treating them as the global norms. It is always seen that when the rules and regulations are strict, then the platforms remain well-structured and won’t fall into any trouble.

Conclusion

The pattern of work in the SaaS platform has changed since Agentic AI came. Now it not only does what it has been instructed to do, but it can automatically run the workflows, talk to the users directly and make decisions. This is a reason why data privacy cannot be just ignored or taken lightly for compliance. The data privacy is embedded in the platform from the beginning. 

We’ve already seen real risks in practice: CRM tools wrongly tagging personal data, learning platforms tracking students without asking, and customer churn models making unclear automated choices. Big cases with Microsoft, Zoom, and WhatsApp show that poor oversight can lead to legal trouble and damage a company’s reputation. On the other hand, platforms that use tools like risk assessments (DPIAs), red-teaming, audit logs, and clear AI governance show that following compliance rules can actually help drive safe innovation. 

The focus now is not on whether regulation is needed; it is on how proactively SaaS providers prepare. With the EU AI Act setting a global benchmark and India’s DPDP rules evolving rapidly, platforms must embed accountability into their products.

It is the time that you check your AI systems. Also, ensure that transparency and privacy are embedded in it in every step and use the AI as a power, not as something which gives you doubt to think again. 

References

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This article is written by the iPleaders team and reviewed by Adv Shashank Singh. He is specialised in aviation law with extensive experience advising on aircraft leasing, MRO agreements, and cross-border aviation contracts. He practices before the Supreme Court of India, Delhi High Court, and key tribunals, combining expertise in complex commercial disputes, white-collar crime, IBC and international arbitration with a strong focus on regulatory clarity and strategic outcomes.

Introduction

In the present-day digital schemes, the act of purchasing an airline ticket never stops at choosing a particular seat; one must always click “I agree” to a long list of terms and conditions. These often-underrated digital contracts are commonly loaded with complex legal jargon, having within their ambit clauses that exempt them from liability and any possible claims, having a requirement for mandatory arbitration, and placing strict limitations on claims grounded in negligence. The deliberately complicated provisions, lodged somewhere deep within the layers of fine print, have the ostensible intention of making easy-going corporate life, but in reality, most travellers are unaware of them.

In this cruel hypothetical air crash scenario of Air India Flight AI-171, families discovered that their rights to compensation were tied not to statutory protections but to the fine print of ticket contracts. This gloomy setting surely presents questions with bane: How aware are consumers of such types of situations? 

Had you indeed unknowingly waived the right to full compensation in case of a crash when clicking “I agree” to airline terms? In the more complex aftermath of such an incident, what truly are the legal boundaries on the enforceability of such digital agreements, and how will the evolution of case law affect the rights of victims going forward? How it plays into clauses of Aviation contracting will be delved into further. 

After all, “Clicking ‘I Agree’ should never mean surrendering the right to justice. The law cannot allow fine print to reduce human life to a clause.”

The anatomy of airline contracts: what do ticket T&Cs typically include?

When the passenger clicks on the “I agree” icon while booking flights online, one essentially accepts airline contracts that the Supreme Court has recognised as binding in law. The T&Cs form the civil basis for the passenger-carrier relationship, and yet only about 12% of consumers bother to read them. Hence, ticket agreements become a contractual black box full of complicated legal commitments.

The terms and conditions of airlines usually have a few standard clauses that are very much in favour of the carrier. Limitation of liability is a prominent clause. Airlines provide nominal compensation for lost baggage, limited under international conventions, like the Montreal Convention, 1999, of the order of roughly $8.33 per kilogram. 

Another important clause is one relating to mandatory arbitration. Instead of allowing passengers their day in court in local jurisdictions, airlines may insist on arbitration in a specific locale, often under Singaporean law or that of the U.S. This limits consumer access to convenient legal remedies and tilts the scales in the airline’s favour.

Force majeure clauses act to relieve airlines of liability by excluding responsibility for events out of the control of an airline: natural disasters or a pandemic. Consequential damages are usually excluded, meaning airlines do not pay for indirect losses, like missed wedding parties, interviews, or bookings for hotels, unless they are clearly at fault.

Adding on to the unfairness, many contracts also contain class action waivers. Such provisions block passengers from bundling efforts in challenging unfair practices; each alleged wronged traveller must proceed single-handedly on claims commonly too minor to justify pursuing.

Post-accident enforceability of waiver: balancing act in the law

After air crashes, passengers or their families are often confronted with airline waivers limiting their ability to proceed legally. Whether such waivers are enforceable depends on whether they survive judicial scrutiny employing principles of contract law fairness, transparency, and absence of unconscionability.

Courts have undertaken various legal tests in assessing waiver validity. One of the foundational principles under the law of contracts is that an agreement to be binding must be entered into voluntarily with free consent and must, therefore, not be oppressive to one party to the contract. Thus, unfair or hidden conditions, especially those limiting liability or imposing arbitration in very distant forums, can be declared unconscionable.

The Nandram case stressed the point about unconscionable contract terms, especially if they are foisted upon the weaker party without negotiations; they are subject to being declared void. The judgment stressed that freedom to contract cannot be absolute; it has to be weighed against the demands arising from justice and equity.

The Montreal Convention provides the basis for airline liability in international carriage, giving passengers minimum protection under Articles 17 to 21. They set strict liability depending on certain thresholds (i.e. bodily injury or death for 128,821 SDRs). While airlines cannot limit the passengers’ claims up to these limits, attempts to lower them through waivers are usually voidable. The courts have determined that waivers contrary to statutory protections cannot be enforced, thereby superseding mandatory international obligations.

The litigator challenging these post-crash waivers is well-advised to consider several basic factors:

• Conspicuousness: Was the waiver clearly disclosed, or hidden in fine print?
• Consent: Did the passenger agree thereto knowingly or did conscience object?
• Bargaining Power: Could anything have been negotiated, or was it take it or leave it?
• Unconscionable: Has conscience itself been shocked by the ultra-one-sided bargain?

A good strategy points to the procedural unfairness and inequality of bargaining power and” in derogation of statutory or treaty protection.” Courts are much more likely to strike down the clauses that appear exploitative, particularly in the hyper-emotional context of aviation disasters.

In short, while waivers from airlines are common, their enforceability is not absolute. Courts weigh the liberty to contract with considerations of justice, especially when lives are involved.

Case spotlight: Air India flight AI-171 & digital ticket terms

The tragic Air India Flight AI-171 crash raised not only concerns about aviation safety but also the legal complexities concerning the terms of digital tickets. This accident during descent into Ahmedabad had many casualties and injuries. While the cause is still under active investigation, the families of the victims find themselves in legal battles surrounding the enforceability of ticket terms and conditions (T&Cs).

Arguably, the most contentious clause in the AI-171 ticket contract concerns arbitration being held in Bangalore with compensation capped at ₹50,000. Such conditions were set in the digital booking platforms and were “agreed” to when passengers or their representatives clicked through the booking process. After the crash, several grieving families were shocked at the thought that there existed such limiting provisions.

When the Bombay High Court was approached by several victim families, the legal wrangling began. The Court issued interim injunctions restraining Air India from acting on the arbitration clause. It was held that enforcement of such a clause perhaps would amount to a denial of substantive justice, especially in the aftermath of a fatal mishap. The public interest petition filed in conjunction with the case described this arbitration agreement as a “blanket denial of justice” in that the families simply did not have a real opportunity to negotiate or review these terms.

The ticket contract would be characterised as an adhesion contract. Such contracts, more so within the consumer context, do open themselves up for judicial scrutiny under the doctrines of unconscionability and unfair surprise. Basically, the courts look at whether the party who is the weaker one really had a choice and whether the terms were laid out before him in a conspicuous manner.

Here, the families argue that the clause for arbitration and the cap for compensation were not just unfairly buried from consideration but were, in reality, unremunerative of the anguish suffered. 

In practice, litigators can show families procedural unfairness, consider the lack of consent, and the fact that an undue burden has been placed on victims in pleading cases against enforcement. The important thing that weighs against enforcing such stiff clauses is the toll of the tragedy itself.

To flash around some of the points considered, the AI-171 matter clarifies the requirement for putting digital consent under the microscope in high-stakes contracts. It brings to the fore questions relating to justice, empathy, and the ethical limits within which an aircraft contract may be enforced.

Other aircraft disasters & how contractual issues intervened

An examination of major airline disasters reveals that ticket terms and conditions have constantly been a source of legal tussle, especially clauses relating to arbitration and limits of liability. Such contractual stipulations have, in many instances, been embedded in digital booking processes and have drawn judicial scrutiny in more than one jurisdiction.

In the MH 370 case of Malaysia Airlines, families were asked to agree to an arbitration in Hong Kong as a condition to partial compensation. This condition has received much negative criticism, and several families have legally defended this issue.

Similarly, in the aftermath of Lion Air Flight JT610 (2018) and Ethiopian Airlines Flight 302 (2019), the families of the victims filed their actions in the United States and in other jurisdictions.

Restrictive contractual provisions were bypassed by counsel for the plaintiffs, invoking elements considered in the Montreal Convention, chiefly Articles 17 and 21 relative to airline liability. This strategy thus allows for outward representation within public judicial systems instead of private arbitration forums.

As this happens in various tragedies, an express pattern appears: digital acceptance mechanisms are increasingly being challenged by passengers and their lawyers. In India, for instance, pleadings under the Consumer Protection Act, 2019 highlight the absence of real consent and the one-sided nature of airline contracts. Families contend that consumers are not meaningfully informed about dispute resolution clauses, let alone allowed to negotiate them.

The slow but discernible shift now tends toward consumer protection from unfair contractual waivers.

Human life cannot be trivialised by contract

There is a need to draw a clear line between contracts for the carriage of goods and those for the carriage of passengers. Under Indian contract law, a carrier dealing with goods may, by agreement, limit liability for loss or damage. Courts have respected such waivers in cases involving cargo, recognising that both parties entered into the arrangement with a full understanding of the risks. But this principle has no place when it comes to passengers. Here, statutory protections step in and override any contractual attempt to curtail rights

The Carriage by Air Act, 1972, which incorporates the Montreal Convention, makes airlines strictly liable for death or bodily injury. Clauses that seek to cap compensation at token amounts or compel grieving families into distant arbitration forums have repeatedly been tested against public policy, fairness, and the doctrine of unconscionability. Recent case law brings this out sharply, in Vinay Shankar Tiwari v. IndiGo Airlines, 2013, the Ld. Uttar Pradesh State Consumer Disputes Redressal Commission held that airlines cannot rely on digital ‘I Agree’ booking systems to contract away their duty of care or basic fairness. The Commission observed: 

…“There is no doubt that a passenger is bound by the terms and contract of carriage, but… the Airlines Authority should help the passengers so that they can board the scheduled aircraft after completion of the security measures in time.”… 

Domestic consumer law vs privity and digital contracts

In the evolving legal landscape of airline disputes, Indian consumer law is now being used to challenge restrictive terms in digital contracts. The typical doctrines of contracts, privity or consent are set aside in favour of an alternate framework focusing on the fairness and welfare of the consumer under the Consumer Protection Act 2019.

On these lines, the CP Act protects consumers against unfair trade practices, including digital contracts with unilateral disclaimers and terms restricting legal remedies contained in hidden clauses. This Act recognises the imbalance of power prevailing in form contracts and allows consumer forums to knock down such terms when they go against public interest. Specifically, if an arbitration clause or a force majeure clause is an instrument that denies consumers access to justice, the forums may declare such provisions void.

International conventions & global consumer protection

Cross-border air travel places the passenger in the midst of international treaties and municipal laws. This regime is led by the Montreal Convention, 1999, which standardises airline liability for injury, delay, and baggage loss. The Convention expressly forbids carriers from contracting out of the minimum liability thresholds set by it, thus providing a baseline of protection to the passengers.

In the European Union, Regulation (EC) No 261/2004 (EU261) imposes further obligations on airlines so that compensation is to be paid in cases of cancellations, long delays, and denied boarding. Airlines have attempted to circumvent these obligations in the past through private agreements erga omnes, but the courts have, ever since the 2015 Paris terror attacks (Carnet case), stood resolutely against such attempts, thus declaring these rights under EU261 cannot be waived by contract. Consumer rights were neither suspended nor waived even in an act of terror.

Therein lies the jurisdictional challenge in India. While the Montreal Convention is binding as per international law, the enforcement under domestic jurisdiction has been specified by the Carriage by Air Act, 1972, Consumer Protection Act, 2019, and the Aircraft Rules, 1937. 

This complex interaction shows how treaty-based rights and national consumer protections together fortify passenger claims, despite aggressive contracting by airlines.

Negotiating the fine print: practical advice for passengers & lawyers

In the high-speed world of online airline bookings, passengers and their legal representatives must remain vigilant about the contract terms they are bound by. Most ticketing platforms embed extensive terms and conditions (T&Cs) that include arbitration clauses, governing law, and liability waivers, all of which can have serious legal consequences.

An arbitration clause and governing law clause would be something to watch out for-they’re usually so deeply buried in a digital scroll box. A clause setting forth a foreign jurisdiction or a seat of arbitration can really deprive passengers of recourse before their local laws.

Such clauses can be contested against the principles of consumer protection and public policy, especially under the Consumer Protection Act, 2019, and the statutory Passenger Charter.

Maintain documentation: take screenshots, list timestamps, and describe where disclaimers appeared on screen during booking processes. Such digital evidence may assist an aggrieved party in proving that the terms were not fairly disclosed.

Ultimately, passengers should approach local consumer forums instead of international arbitration centres. These forums allow for cost-effective, rights-based remedies and are increasingly assertive in refusing to enforce unfair airline contracts.

Reform is possible: policy, courts, and airline self-regulation

Looking forward to a progressive path in airline contracting involves a combination of regulatory directives, judicial disciplining, and industry self-regulation. The DGCA can start out by promulgating directions requiring airline booking platforms to display arbitration clauses, liability waivers, and governing law terms plainly upfront. Presenting those clauses to passengers before payment would be one step in countering the practice of burying them in hyperlink text.

ICAO can be pressed internationally to lay down model directives on digital contract fairness, including disclosure standards and passenger consent mechanisms. These would help cross-fertilise consumer protection mechanisms across jurisdictions.

On the legislative side, India would do well to introduce a Consumer Protection (Digital Contracts) Bill 2024 that explicitly deals with standard-form digital contracts to maintain fairness, transparency, and true consent in aviation services. The present law can even go further and prohibit pre-dispute arbitration in consumer matters.

Another role courts can continue to act out is invoking public policy to strike down terms that are oppressive to passengers, who may have no negotiating power whatsoever.

Way ahead 

It is also important to recognise that aviation is not casual about safety. Organisations such as Air India Engineering Services Limited (AIESL) operate under one of the most rigorous regulatory frameworks in the world. Before a flight takes off, the number of inspections, certifications, and compliance checks is formidable, spanning airworthiness directives to routine and non-routine maintenance. These multiple layers exist precisely to make sure that the catastrophic scenarios discussed in the article remain rare exceptions.

Looking ahead, there are broader perspectives that could further strengthen law and policy in this field:

Uniform liability 

Extending Montreal-style compensation standards to domestic flights would prevent disparity between international and domestic passengers.

Advance compensation

Mandating transparent advance payment mechanisms would provide families with immediate relief after an accident, avoiding unnecessary hardship and litigation delays.

Digital contracting fairness

Passenger contracts should highlight statutory rights upfront in plain language, making aviation a benchmark for consumer protection in the digital space. Re-thinking consent: Regulations should clarify what cannot be tucked away in digital contracts, ensuring statutory protections remain untouchable.

Insurance enforcement

Compliance with mandatory liability insurance must be strictly monitored, so remedies remain real and enforceable.

Awareness campaigns

Periodic efforts by airlines and regulators to educate passengers about their rights, especially in digital ticketing contexts, would go a long way in reinforcing trust.

The real debate is not about airlines shirking responsibility, but about how law and regulation can continue to strike a balance. Transparency at the time of contracting, together with the formidable technical safeguards already woven into aviation practice, serves to protect both passengers and the industry. Clicking ‘I Agree’ must never mean giving up fundamental rights, and it should also remind us of the immense responsibility carriers and MROs shoulder in keeping every flight safe.

Conclusion

Airline ticket contracts often brush aside unfair terms with digital gloss, leaving passengers with nowhere to turn. This discussion outlines the methods by which courts, regulators, and consumers may oppose such unfair terms. The working definition of consent seems to require a real understanding and not just a click-induced, forced recognition. I therefore recommend the strengthening of disclosure requirements, judicial vigilance, and statutory safeguards, such as those envisaged by the Digital Contracts Bill. Industry players should also promote transparency and fairness. Passengers must insist on reading the key terms and document everything well, then enforce their rights in consumer forums. It is time to rebalance the skies; contracts should be for people, not against them. We should all rally for reform based on justice and transparency.

Frequently asked questions (FAQs)

1. Can airlines impose terms and conditions even if the person does not read them?

Yes, when the person clicks “I Agree”, then under contract law, it is generally considered a valid consent even if the person has not read the terms and conditions. On the other hand, the Court can also strike down the clauses that are unfair or violate any statutory protection. 

2. Do airlines have the right to completely avoid any liability related to crashes through contracts?

No, airlines cannot completely avoid the liability related to a crash through contracts. Domestic laws such as the Carriage by Air Act, 1972, and International conventions such as the Montreal Convention set a minimum standard related to the liability and cannot be waived off through the contracts. 

3. Do Indian passengers have different protection as compared to international passengers?

Yes, Indian passengers have different protection as compared to international passengers. The international passengers are protected under the Montreal Convention, and this also sets uniform global liability standards. On the other hand, the Indian passengers usually rely on the Carriage by Air Act, 1972, and the Consumer Protection Act, 2019. 

References

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This article is written by the iPleaders team and reviewed by Adv Shashank Singh. He is specialised in aviation law with extensive experience advising on aircraft leasing, MRO agreements, and cross-border aviation contracts. He practices before the Supreme Court of India, Delhi High Court, and key tribunals, combining expertise in complex commercial disputes, white-collar crime, IBC and international arbitration with a strong focus on regulatory clarity and strategic outcomes.       

Beginning

For a long time, private planes have been the go-to travel choice for wealthy individuals. This has increased ever since the pandemic hit, in India and across the globe. With this, there has been a significant increase in private jet accidents as well.   

Now these accidents are quite different from commercial planes, as these tragedies don’t make headlines. This triggers a storm of legal, financial and reputational battles. Several questions come up: Who is the owner? Who is liable? Will insurers pay up? And what happens to the vast estate suddenly left behind? 

Just like the plane crash of Wagner chief Yevgeny Prigozhin, which resulted in his death in August 2023. He left behind his Embraer Legacy 600. This sparked a speculation of foul play, sabotage, pilot error and technical error.

On the outside, private aviation may look glamorous, but beneath that sheen lie serious gaps in laws and regulations.  

This compels us to imagine how courtrooms examine these types of cases. Moreover, a major question that arises here is, when the rich fall from the sky, do law and justice fall with them?

Private planes vs commercial airlines: how legal frameworks differ

Both do not differ on the surface. Both involve a licensed pilot, passengers and an airworthy plane. But what differs in the framework on which they work. 

Unlike commercial flights, private planes operate under far less scrutiny. Private jets usually operate under the Non-Scheduled Operator Permits (NSOPs) in India. This design gives flexibility to private operators, which is often misused, but they can choose their pilot, crew and set operational protocols. 

Yes, private planes have a regulatory eye of the Director General of Civil Aviation (DGCA), but the level of oversight is nowhere near that of commercial flights. Commercial flights have to go through safety audits, compliance reviews and standard operating procedures. Private planes, on the other hand, work on loose rules, few inspections and diluted accountability.  

This picture is not different on a global level. There are different frameworks that create a dense web of complications, like the Montreal Convention, DGCA protocols and ICAO norms, for commercial flights. But this web is far from the private planes. The NSOPs leave room for flexibility, which also dilutes accountability.

This is a huge challenge for the lawyers, insurers and the victim’s family. Which court has the jurisdiction? Compensation claims can be filed under which law? How will the damages be calculated? These are not abstract questions, but determine if the victim’s family gets fair compensation or stays stuck under a web of a long-running lawsuit.   

Passengers are not treated as  consumers

Which legislation helps when a commercial plane goes down?

The families of these passengers can file a lawsuit under the Consumer Protection Act, 2019. This is not the same for private aviation. The reason is basically because most of the passengers of private planes are either:

• Owners
• Company directors
• Family members, or
• Guests 

This creates issues for the lawyers and family members of these victims. How?

Since these passengers are not ‘regular ticket holders’, they cannot go to consumer courts. Their legal remedies shift to contract law, tort claims and insurance litigation, and this makes the compensation process technical, expensive and very long.

Contractual ambiguity and waivers

In private aviation, the stakes of forms and waivers that are often signed are the foundation of a legal maze. These charter agreements are not easy. The clauses in these documents quietly shape what happens if something goes wrong.

You will find clauses like, liability limitation clause, the waiver clause and the jurisdiction clause, which very conveniently push the dispute into faraway or foreign arbitration forums like New York or Singapore. Litigation gets more challenging because of other exclusion clauses.  

For the victim’s family, this creates an uphill battle. The legal battle is not shaped as per any straightforward legal rights but on the basis of the right waived when the agreement was signed. 

Where the compensation claims are guided by the statutory safety provision and international guidelines, the outcome depends much on the contract. Which means, when the accident happens, the question is not about negligence or law, but about what was buried in the fine-printed agreements that passengers often sign without even understanding them completely. 

Liability maze: Who can be sued after a private plane crash?

When a commercial plane comes down, it is easy to trace the liability. Things are quite strict and clear here. But private planes? Things get complicated quickly when it comes to determining the liability.

Private planes are tucked behind layered corporate vehicles, trusts or consortiums. Finding out who is liable is like digging through corporate documents, charter agreements and insurance policies, yet investigation reports do not always give a definite answer. 

So who can be held liable? Let’s break down:

Pilot and cabin crew 

First stop of any investigation. 

They are at the centre of any investigation. Fatigue, human error or poor decision-making often put them at the centre of the liability claims. 

Operator company 

If the operator company neglects flight preparation, flight safety check or deployment of crew, then if any fatal accident happens, it finds itself in a legal crosshair. 

Aircraft owner 

Things are a bit tricky here. Often, the owner is not an individual, but a trust or a shell company registered in a tax haven. Finding out the real owner is an investigation in itself. They are usually hidden behind this network of shell companies.   

Maintenance firms

If the crash is the result of mechanical failures or faulty repairs, then maintenance contractors shall also fall into the maze of liability.

Charter broker

The claims of misrepresentation of the safety of the private flights or failure to exercise proper due diligence may come against the broker who arranges the flight. 

Manufacturer 

This is not common, but if any defect in design or system is discovered, then manufacturers may come under the radar.

Insurers 

Ultimately, compensation comes from the insurers and individual insurance policies. But it is often noticed that insurance companies act notoriously to avoid the obligation by conducting their own investigation and trying to pin blame elsewhere to limit payouts.  

Liability does not rest on one party, actually. Multiple parties share the liability, jointly and severally, to ensure that families receive proper compensation. Yet again same problem, the process can drag on for years. 

The lawyer’s uphill battle

The path to represent the victim’s family has practical hurdles. It takes months to trace ownership through offshore shell companies. Serving a cross-border notice requires understanding and compliance with the Hague Convention procedures or bilateral treaties. 

Next comes jurisdiction. Charter agreements often come with arbitration clauses that scatter disputes among different jurisdictions, sometimes three or more. 

The victim’s family finds themselves running from one place to another. Filing probate proceedings in one country, an insurance claim in another and a negligence suit in another.

This is like a legal marathon for them, draining both financially and emotionally.

Succession battles and the estate: death, wealth, and aviation disasters

A private plane carrying a high-net-worth individual (HNI) when crashes, then the tragedy rarely ends at the crash site. A lot happens when there is a sudden loss of a business leader or a public figure. Families shatter, empires destabilise, and a long legal dispute ensues. 

History witnessed this with the sudden demise of Sanjay Gandhi in a plane crash that left not only a personal political vacuum but also reshaped the direction of Indian politics in 1980. A recent incident of the crash of a Gulfstream G-IVSP that killed Flow La Movie, a Puerto Rican music producer. This tragedy did not leave a grieving family but a rich estate, stretching across royalties, offshore assets, intellectual property and claims in multiple countries.      

These assets that NHIs hold leave behind wealth scattered across bank accounts, private equity, offshore trusts, real estate and business ventures that span continents. Now, this situation in India is further complicated because of cultural and legal realities. Many family businesses still work on ‘handshake deals’ without any formal agreements and without a will and trust.  

Role of Insurance Policies

The impact of these tragedies is financial as well. Everything like aviation liabilities policies, keyman-person insurance and personal life insurance comes into play after the accident. And when these insurance payouts into hundreds or even thousands of crores, they can either stabilise the family or turn into a long-lasting court battle.  

A hidden tension comes to the surface when grief mixes with sudden liquidity. Insurance payouts can attract various people to fuel the power struggles, like business partners, distant relatives, and estranged spouses.    

So, what we get here is that a private place crash tests the strength of wealth planning, family unity and legal safeguards. Hence, for HNIs, succession planning is not a luxury, but it is the only real defence against decades of disputes.  

Insurance coverage and denial: the big money fight

Families naturally assume that insurance will ease at least a part of the financial blow. But in reality, the actual battle does not start in the court but with an insurer. They look for different possibilities to deny insurance payouts. 

One of the most common grounds for denial is pilot error. Even a minor issue with licensing can be a ground for denial. For instance, if a pilot is flying at night and he lacks a valid night license, then the claim can be denied. 

Maintenance is another big reason. If any scheduled inspection is skipped by any aircraft or uses a non-certified part then a ‘material non-disclosure clause’ is invoked by the insurer and then refuses to pay.   

The international aspect makes the private aviation dispute more complex. For any Indian-origin victim, if his plane is registered in tax havens and insured by Bermuda, London or Singapore underwriters, this means spending a huge sum of money just to fight over jurisdiction even before the actual claim is heard.  

Insurers play a long game. They are well aware that families are grieving and they can accept a fraction of the actual payout. That is why private aviation insurance disputes are not just about policy language, but about timing, strategy and sheer endurance. Those who go unprepared often end up with far less than what was promised by the insurers.  

Product liability and defective aircraft claims

When a private plane crashes and there’s no clear evidence of pilot error or maintenance issues, focus shifts to the aircraft manufacturer and the possibility of a product defect. This opens the door to one of the most technical, expensive, and complicated types of litigation, i.e., aviation product liability.

On paper, the principle is simple. If a design flaw or manufacturing defect played a role in the crash, the manufacturer (or component supplier) can be held liable. In practice, proving that link is anything but simple. 

Modern business jets are not built by a single company but by vast networks of suppliers scattered across multiple countries. 

Tracing a fault in an altimeter, a hydraulic system, or a flight control module often requires access to proprietary data that manufacturers are reluctant to release without a court order.

Aircraft manufacturers routinely deploy forum non conveniens arguments, attempting to shift cases to jurisdictions with weaker product liability laws. Many contracts include limitations of liability or mandatory arbitration clauses buried deep in delivery agreements.

Plaintiffs who succeed usually do so in the US (particularly in states like California or Texas) or EU courts, which apply strict liability doctrines. However, securing jurisdiction in those courts often hinges on the aircraft’s point of manufacture or sale, not its crash location. 

Regulatory investigations: how DGCA, AAIB, and global bodies respond

The sequence feels almost predictable when a private plane crashes. Rescue operations are finished by the first responders. Then the investigators reach the crash site.    

But does this guarantee accountability or timely investigation? 

Absolutely not. Private aviation in India operates under a weaker system. Investigation is often delayed, and reports are not transparent. The process in commercial aviation is completely different. Strict rules are to be followed by the agencies and protocols are time-tested. Reports prepared are detailed and transparent and this leads to strong safety measures.    

Framework in India

India has two main authorities on paper:

Directorate General of Civil Aviation (DGCA)

DGCA oversees licensing, registration of aircraft and certification of airworthiness.

Aircraft Accident Investigation Bureau (AAIB)

AAIB comes into play when a plane crash occurs. This is responsible for investigating these crashes.  

For private planes, jurisdictional overlaps and limited resources weaken the effect of these bodies. Specifically, if this aircraft is operating in India but is foreign-registered.  

The problem here is that, even after a thorough investigation on the technical side, the findings are not admissible in the court. This makes the road to justice harder for the victim’s family. 

The puzzle of insurance

Let’s see the case of New India Assurance Co. Ltd. vs. Janus Aviation Pvt. Ltd. (2024). The insurer’s appeal to wiggle out of the liability was rejected by the Bombay High Court. This case highlighted a pattern: to deny claims, insurers often rely on technical interpretations of the policy language, while the operators and families are left tangled in litigation. These disputes aren’t just about the contracts, but they go to the heart of the possibility of the existence of any remedy at all.

Cases that tell the story

Learjet 45 VT-DBL, Mumbai (2023)

Amid heavy rainfall, a Learjet 45 aircraft veered off the runway at Mumbai airport, leaving eight on-board people injured. The preliminary investigation held by AAIB pointed out the gaps in the qualifications of the crew and operational compliance. Even in high-end private aviation, the lapses in oversight cannot be isolated but systematic.   

Cessna 152, Faizabad (2018)   

A Cessna 152 aircraft, VT-PTD, was involved in a forced landing on the Saryu river bed in Faizabad. This incident revealed just how fragile safety systems can be at smaller operators and academics.   

What is the common thread in these cases?

It is the lack of uniform, enforceable standards that match those applicable to commercial planes. 

Transparency matters

AAIB does not reveal the report at a transparent level, with proper clarity and is often delayed. This is very different from the US National Transportation Safety Board (NTSB) or Australia’s ATSB.  

Beechcraft B-200 King Air, Essendon, Australia (2017)  

This was one interesting case in which an Indian-origin executive was killed. Australia’s ATSB not only identified the pilot’s error but also issued a public safety bulletin, recognised contributing and non-contributing factors and published the report transparently. It later even played a role in resolving civil and insurance claims.     

The victim’s family in India faces bureaucratic roadblocks when trying to access the data of the black box, maintenance records or interim findings. Even when they use their Right to Information (RTI), key documents are denied on the pretext of national security, or if accepted, then they are shared in redacted form.  

What do recent patterns in private plane crashes reveal?

Every private plane crash is a human tragedy. But if we look into the bigger picture, patterns begin to emerge. And these patterns expose the operational lapses and deep legal blind spots. These plain crashes are not some random events.

Taking the example of a crash of Wagner chief Yevgeny Prigozhin’s Embraer Legacy 600 in 2023. The headlines were dominated because of the political angle, but something different was noticed by the aviation lawyers. A complete lack of transparency around the history of the maintenance of the jet, crew vetting and basic security protocols. Much information was kept secret from the public by private ownership.   

Another case was a Cessna citation in Virginia in 2023. This plane flew on autopilot and ran out of fuel midair. It crashed and killed all the passengers on board, including a senior executive’s child.   

Initial theories pointed to cabin depressurisation. But the investigation revealed that the confidentiality clause between the servicing firm and the plane owner blocked access to critical data. The families had to fight just to access the evidence that explained their loss, before they could even think of compensation.    

Three patterns stand out across these incidents:

• Being registered under shell companies or trusts helps protect privacy and avoid taxes. But this makes it hard to set liability and ownership.
• Maintenance, operations and crew training are often spread across multiple firms. Now, when something goes wrong, deciding accountability gets complicated, which further complicates the litigation.  
• Insurers often use technical language to delay and deny payouts. 

These patterns show that the problem is not just negligence, but also the systematic gaps. The baseline of accountability is missing. 

Ending note

Private aviation may provide freedom and luxury, but the legal aftermath after a crash tells a different story. Ownership is the major issue because it is often hidden behind offshore trusts. Contracts and waivers bury the liabilities. And, insurers try harder to deny payouts to the victim’s family. 

Where in commercial aviation the process is quite transparent and provides statutory protections, families of the victims of private plane crashes are left to go through long battles for compensation.

Hence, reform is overdue. Extension of liability rules like the Montreal Convention to private aviation, enforcement of mandatory insurance with real audits, putting limitations on unfair waivers and putting accident reports transparently are the bare minimum.   

The law must not fall when a private plane falls. Only commercial aviation must not have the privilege of accountability and oversight.  

FAQs

What is the first legal step that families should take after a private plane crash?

After a crash, the families should get in touch with an experienced aviation lawyer. This should ideally be in every jurisdiction, including where it was registered, insured or operated. Preservation of evidence is also important, the chain of custody is maintained, and official accident reports are obtained without delay. 

Can a foreign company be sued in India?

Yes, but it can be quite complicated because legal notices may need to be served and claims filed in the foreign jurisdiction where the company is registered. It’s usually better to start parallel proceedings in India to secure interim relief.

Can a private plane crash trigger criminal liability?

Criminal liability in a private plane crash is a rare scenario. Unless gross negligence, unauthorised maintenance, or falsified documents are proved by the investigator, no case crosses the threshold of criminal charges.

Do private plane passengers have any consumer rights?

No, the private plane passenger does not qualify as a ‘consumer’ under the  Consumer Protection Act 2019 until they pay for their ticket directly. But, as an alternative, families may pursue remedies under tort or contract laws.

References:

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