The Karnataka High Court has ordered the constitution of a Special Investigation Team (SIT) to reinvestigate the alleged data theft at NewSpace Research and Technologies Pvt Ltd, a leading Indian drone manufacturer that works with critical national security stakeholders. The SIT will be led by DGP Pranab Mohanty, with senior IPS officers Bhushan Gulab Rao Borase and Nisha James appointed as core members.
Justice M Nagaprasanna, while delivering the order, expressed strong reservations about the integrity of the original police investigation, especially considering that the former investigation officer is now facing a corruption case. He directed the state government to immediately transfer the investigation to the SIT, which must submit a report within three months.
The complaint stems from allegations by NewSpace Research, which accused former employees—led by ex-vice-president Prabhat Sharma—of stealing sensitive data and launching a competing company, thereby compromising India’s national security.
“Cyber Espionage in Disguise”: Judge Criticizes Laxity in Probe, Cites Paper Arrest
In a strongly worded judgment, Justice Nagaprasanna warned that the case carries the “colour of cyber espionage” and emphasized that such high-stakes data theft cannot be investigated through ordinary procedures. He noted that technical expertise and forensic capabilities are essential for a fair and meaningful probe.
He also raised serious concerns over how Prabhat Sharma—initially arrested in the case—was simply issued a “notice for appearance”, effectively bypassing custodial interrogation.
“What should have been custodial interrogation ended up in a mere appearance before the investigating officer, giving rise to doubts of fake investigation,” the judge observed.
Calling the earlier probe superficial and ineffective, the court emphasized the risk of a miscarriage of justice if a deeper, more specialized investigation is not undertaken. The judge noted the importance of NewSpace Research’s clientele, including the Indian Army, Navy, Air Force, BEL, HAL, and DRDO, underlining the sensitivity of the stolen UAV-related data.
NewSpace Warned of National Security Breach; SIT Tasked with Restoring Public Trust
NewSpace Research had approached the High Court with a plea for an SIT-led investigation, arguing that the unauthorized transfer of proprietary UAV data by its former employees posed a serious threat to India’s strategic interests. The company stated that despite filing a police complaint, little progress had been made due to possible internal collusion and procedural lapses in the prior investigation.
The government counsel acknowledged that a change in investigation officers had taken place due to corruption allegations against the original investigator and offered to have the High Court monitor the ongoing probe. However, the court opted instead for a fresh SIT to ensure credibility, speed, and depth in handling a case with implications beyond corporate rivalry.
The SIT is now tasked with thoroughly examining:
The alleged theft of critical UAV designs and software
The chain of data transfer from NewSpace servers
The setup of the rival company by the former employees
The role of insiders or officials who may have delayed justice
The court’s intervention underscores the growing importance of cybersecurity and intellectual property protection in the defense-tech sector. The SIT findings, once submitted, could set a precedent for how India deals with internal data theft involving strategic defense innovations.