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Chapter VII · Appeal and Alternate Dispute Resolution

Section 31: Alternate Dispute Resolution

Section 31 lets the Board steer a complaint into mediation where it thinks the dispute can be settled that way: a discretionary off-ramp that runs alongside, not instead of, the Board's inquiry and penalty powers.

Official text
Section 31Mediation (ADR)
Chapter
Chapter VII · Appeal and ADR
Status
Enacted · phased commencement
Full compliance
13 May 2027
Applies to
Parties to a Board complaint
Official citation
DPDP Act, 2023, s.31
Reading time
6 min
Updated
August 2026

At a glance

Section 31 gives the Data Protection Board a narrow, discretionary power to direct the parties to a complaint to attempt mediation, where the Board is of the opinion that the complaint may be resolved that way. The mediator is one the parties mutually agree upon, or one provided for under any law in force in India, such as the Mediation Act 2023 (which Section 31 does not name). Mediation is not a right either party can demand, and the section does not say that attempting or completing mediation pauses a Section 28 inquiry or bars a Section 33 penalty. Unlike a Section 32 voluntary undertaking, a Section 31 mediation carries no express statutory bar on further proceedings. Section 31 takes effect on 13 May 2027.

Applies to Parties to a complaintChapter Chapter VIIEffective 13 May 2027Read time 6 min

Key takeaways

  • Section 31 lets the Board direct parties to attempt mediation where it forms the opinion a complaint can be resolved that way.
  • It is discretionary: the Board decides, and neither party can demand mediation or force a settlement.
  • The mediator is mutually agreed, or appointed under any law in force in India (the Mediation Act 2023 is relevant context, though Section 31 does not name it).
  • Crucially, Section 31 has no express bar on further proceedings: unlike a Section 32 voluntary undertaking, mediation does not automatically stop a Section 28 inquiry or a Section 33 penalty.
  • Mediation suits remediable operational disputes (late correction, incomplete access, residual marketing) more than serious or systemic breaches.

Who should read this

Read this if a Data Principal complaint against you might be steered into mediation: it explains when the Board can do that, what a settlement can and cannot achieve, and why it does not switch off your penalty exposure.

FoundersLegal / DPOCompliance leadsProduct / engineering

In plain language

Section 31 is a settlement off-ramp. If the Board thinks a complaint could be resolved by agreement, it can direct the parties to try mediation, a facilitated negotiation where a neutral mediator helps you reach a workable outcome rather than deciding who is right.

Two things to keep straight. It is the Board's call, not a right you or the complainant can demand; and it does not replace the Board's own inquiry. Mediation runs alongside the enforcement track, it does not switch it off.

That last point is the trap: unlike a Section 32 voluntary undertaking, which expressly bars further proceedings on its contents, Section 31 mediation carries no such bar. A settlement can help your position, but the Act does not say it prevents a Section 33 penalty.

The text of the law

Section 31: Alternate Dispute Resolution

31 If the Board is of the opinion that a complaint may be resolved by mediation, it may direct the parties concerned to attempt resolution of the dispute through mediation, by a mediator the parties mutually agree upon or one provided for under any law for the time being in force in India.

Wording summarised from the enacted Act. Always confirm against the official Gazette text for authoritative language.

What this means for you

  • Triage every complaint for mediability: a correctable operational failure (late correction, incomplete access, residual marketing after a consent withdrawal) is a good candidate; a serious breach, systemic failure or deliberate non-compliance usually is not.
  • Do not drop evidence preservation because mediation is on the table: keep the complaint, investigation record, consent and access logs, processor evidence, grievance response and remediation history.
  • Separate negotiable from non-negotiable before you sit down: you can offer to delete marketing data or fix a suppression flag, but you cannot agree to delete records you must retain under tax, legal-hold or sectoral law.
  • Set delegated authority in advance: decide who can approve correction, deletion, process changes or any settlement wording, and keep privacy, legal, security and business aligned so a promise does not collide with another obligation.
  • Do not treat a settlement as immunity: it can show cooperation and remediation, but the Board can still inquire and penalise. Not sure how exposed you are? Take the readiness assessment or find a specialist.

Frequently asked questions

Can we demand mediation instead of a Board inquiry?
No. Section 31 requires the Board to form the opinion that the complaint may be resolved by mediation. The referral is discretionary; neither party can compel it.
Who chooses the mediator?
The parties mutually, or a mediator provided for under any law in force in India. The Mediation Act 2023 is relevant context, though Section 31 does not name it.
Does a successful mediation end the Board's case?
Not automatically. Section 31 has no equivalent of the Section 32 bar on further proceedings, so a settlement does not by itself close the matter.
Does mediation remove the risk of a penalty?
No. Nothing in Section 31 or Section 33 says mediation prevents a penalty if the Board later finds a significant breach after inquiry.
Do the DPDP Rules set out how the mediation runs?
No. The Rules do not prescribe a dedicated Section 31 mediation procedure; the section points to a mutually agreed mediator or one under applicable Indian law.

Sources

Related sections
Section 30: Tribunal Orders as a DecreeSection 28: Procedure Followed by BoardVoluntary undertaking (glossary)Chapter VII overview

This is an educational explanation, not legal advice. dpdpactindia.in is an independent resource and is not affiliated with the Government of India.

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