Tech Mahindra attacked by Ransomware, PCMC refuses to pay for the loss.

Tech Mahindra lodged a complaint on March 9, 2021. According to the complaint, the servers of the Chinchwad Smart City Project suffered from a ransomware attack that caused an estimated loss of Rs. 5 crores.

From the start – Tech Mahindra on highlight

In 2019, Tech Mahindra got the project of Smart City (Pune) worth Rs. 500 Crores from the Pimpri Chinchwad Municipal Corporation  (PCMC). The project was about to provide a smart infrastructure, control center, integrated command and real-time monitoring, data center, traffic, disaster management. About 15 crores, approximately, have been invested on the firewall of the system. Now, on March 9, 2021, the manager at Tech Mahindra, registered a criminal offense at the Nigdi police station.

Tech Mahindra, Pune

Insight of the attack

The Tech Mahindra officials said that they were informed of a ransomware attack on PCMC servers and the team has briefed the whole situation to the cybersecurity officials and filed FIR with the police. The attack took place on February 26, 2021, where it affected 25 servers of Pune’s Smart City Project. Now, they have concluded that all the servers which are infected will be rebuilt and implementation of a robust security system will be done. The attackers have demanded Rs. 5 crores in ransom and the amount has to be paid in Bitcoins. But the officials have declined to pay the amount and said that the servers will be rebuilt and the data can be recovered.

Saying’s of Politics and PCMC

Sujit Baksi, Head, APAC Business and President, Corporate Affairs, Tech Mahindra, said in a statement to Moneycontrol, “Our team is monitoring the situation on a regular basis and has also continued the work on rebuilding the environment without touching the infected servers. The servers, which were impacted are recoverable and there are no commercial repercussions.”

Being a public entity specializing in IT and business process outsourcing for other public entities in the country, the situation has sparked political debate in India, as opposition parties blame Tech Mahindra of incompetence, negligence, and even for hiding key information relevant to the incident from the public.

PCMC office

The civic body shall not compensate anything to the IT firm, said Municipal Commissioner Rajesh Patil as the civic body claims to not have suffered any damage in terms of information leakage. According to PCMC IT Officer Neelkanth Poman this comes as a surprise as they thought the company could restore the system and also there is no justification for the loss and hence PCMC shall not pay a single penny to Tech Mahindra.

Though the servers attacked by ransomware are recoverable and there is no commercial impact on it but the government has to interfere in the form of cybersecurity rules and the deployment of the manpower in any sector. We hope that now all the development projects will be handled more carefully and political war will be set aside in terms of the development of business and country. With this, I am signing off and will see you with other updates and posts. Stay connected!