Indian Tech firm files lawsuit after ransomware attack

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Tech Mahindra, one of the renowned IT companies from India, has filed a lawsuit against a government for refusing to pay a compensation of over 50 million for the loss incurred through a ransomware attack.

Going deep into the details, Tech Mahindra was managing all Information Technology related services related to the Chinchwad Smart City Project being funded by Pimpri Chinchwad Municipal Corporation (PCMC).


Unfortunately, the servers operating at the smart city project were targeted by a ransomware attack on February 26th,2021 resulting in severe losses to the company managing the project i.e. Tech Mahindra.

According to Mahendra Laxminarayan Lathi, the IT head of the project, hackers somehow infiltrated the database and locked up the data from access, making it difficult for the company to restore data at the earliest.

Because of the file encrypting malware attack, the technology services provider suffered disruption to the services related to the smart city project that includes smart water & sewage system disruption, traffic and parking issues in the city and impact on the CCTV surveillance and the data center that also affected the recovery of services during disaster.

Tech Mahindra estimates that the cost of the financial loss incurred by it was Rs 5 crore and it expected a payback from the Municipal corporation. But Rajesh Patil, the Municipal commissioner, issued a press statement yesterday stating that the corporation was not liable for compensation and so no single penny will be reimbursed to the tech giant.

After listening to the words of Mr. Patel, Tech Mahindra filed a lawsuit as it incurred a heavy loss with the ransomware attack that might have made 25 of its servers worthless.