Is Background Verification Mandatory In India?

Yes, background verification is mandatory as all organizations are on the lookout for qualified, trustworthy and credible candidates who will actively contribute to their productivity.
Employers hire individuals who have access to the company’s as well as the client’s sensitive data. In order to ensure that the data is not misused, fraud mitigation needs to be conducted on the candidate. Every company should have a background check policy in place to safeguard themselves against serious litigations relating to negligent hiring practices and data leakage.
All candidates have to go through an extensive background check which includes checking their identities, residential address, past employment, academic credentials, CIBIL scores, criminal history, court record checks, social media checks. Most companies opt for the 4 most common checks i.e Address, past employment, education and court record check.
ISO 27001 certified companies are mandated to perform a background check on all their employees. Also, the Privacy Data Protection Bill of India, which is based on the GDPR of Europe mandates the same


Certain background verification firms are unaware of the Data Privacy Law’s regulations.
The supreme court of India has declared the right to privacy as a fundamental right which is protected under the Indian Constitution. This changes the manner in which data is utilized by businesses. This legislation has come into effect so as to minimize intrusion into a person’s privacy. Arbitrary use of individual data is no longer permitted and so, these background verification companies are usually very compliant when it comes to handling data. Both the government as well as the private entities will not be able to misuse data in this manner. Under the data privacy laws, checks such as court records and criminal track history do not need consent as these are public records and can be accessed by anyone. Biometric information and the financial details need permission and authentic background check companies always seek the consent of individuals before conducting these checks. Even reference checks are done by intimating the candidate about it prior to it being carried out.
No firm would want to become a victim of negligent hiring as bad hires can cause irreversible damage to a company in the form of unhealthy workplace behavior, lowered productivity, data thefts and the like. Lawsuits can lead to excessive monetary losses. Given below are a couple of reasons for conducting background checks
· Creating a secure and healthy workplace where employees and stakeholders feel at ease and inspired.
· Transparency is a vital facet and must be ensured on both fronts
· Eliminating the element of uncertainty during the hiring process
· Maximizing productivity by taking in only the most diligent candidates
A new hire is synonymous with an investment of time, resources as well as money. It is imperative for firms to run their due diligence on a candidate prior to hiring them. Once they have the final reports of background checks, they feel reassured and more confident.
In the present day, 68 per cent of individuals have embellished resumes that they utilize to apply for a job. A rapid spurt of misrepresentations in all companies points towards the need for outsourcing pre-employment verification. The credentialed background verification firm will educate you in those departments that you need to keep abreast of.
An Indian-American ex-Amazon employee was put behind bars for over 10 months over embezzlement and fraud. The article contained in the Times of India had highlighted how a 28-year-old employee was indicted. Using his inside knowledge, he had been recruiting employees in India and taking bribes. He has paid over $100,000 in bribes during his tenure. (
A popular Indian fintech company is also in the news for misappropriation of company funds. The upper management have allegedly abused the company’s expense account so as to maintain their luxurious lifestyles. People who hold significant posts also need to undergo a thorough background screening so that the employees who work under them feel comfortable.
The lack of a centralized system for a candidate’s complete background verification is a loophole that we must begin to live with. The entire process of getting a background screening done can be outsourced to certain companies that conduct background checks professionally. Companies can leverage background verification to bag certain contracts with both foreign and domestic clients. A comprehensive background check report that was prepared by us was well appreciated by our client based in Singapore. They used it as a prototype so that they could show our reports to their prospective clients. This in turn led to the acquisition of a lucrative contract.
Millow happens to be an ISO 27001 certified company as this certification is a prerequisite for all those firms that do the work of fraud mitigation. Some companies get pulled up for discriminatory hiring practices and few have even been sued in court. “Unconscious bias” is a genuine phenomenon in hiring. Background checks eliminate bias as they are gender-neutral & objective as they are fact-based and provide substantive proof”. Background verification qualifies or eliminates people on the basis of substantive proof.
Outsourcing the work of background verification also allows a company to enjoy more flexibility when it comes to operation and budget. They are able to devote most of their time to strategizing and looking for ways to enhance their company’s overall revenue. Background verification is indeed mandatory in our country as it sheds light on the aspects that firms care about.
Millow is India’s trusted background verification company. We leverage our proprietary technology & stringent processes to provide you with BGV reports in the shortest amount of time. If you need to get your employees, vendors, business partners, loan applicants, or even yourself/profile verified do contact us on:
Contact: 011 41219183