Delhi High Court Orders Meta to Disclose Basis for Disabling SEBI-Registered Analyst's Instagram

In a significant development for platform accountability, the Delhi High Court on Monday directed Meta Platforms Inc. to place on record the material that led to the disablement of a SEBI-registered research analyst's Instagram account and the imposition of restrictions on her three other social media accounts. Justice Anup Jairam Bhambhani, presiding over the suit filed by Aakanksha Gupta, declined to grant any interim relief at this stage but ordered Meta to disclose the underlying evidence. The matter is set for further hearing in October.

The case highlights the tension between social media platforms' enforcement of community standards and the due process rights of users, particularly those whose livelihoods depend on digital presence. Gupta, a stock market advisor and analyst registered with the Securities and Exchange Board of India, alleged that one of her Instagram accounts had been disabled without clear cause, while three others—two on Instagram and one on Facebook—were subjected to strikes or restrictions that severely hampered her business.

The Allegations: A Cryptic Enforcement Action

During the hearing, Senior Advocate Diya Kapoor , representing Gupta alongside Advocate Nakul Gandhi , submitted that her client operates multiple social media accounts across platforms including Instagram , Facebook , X , and Telegram to provide investment advice and financial literacy content. She argued that Meta's actions were "not entirely discernible" and came with "cryptic" explanations. The disabled account, according to Gupta, had previously faced copyright strikes that were later found to be fraudulent and restored, only to be disabled again on grounds of "Adult Sexual Solicitation." Kapoor emphatically denied any such activity: "I am instructed to state that we have conducted no such activity at all on this account."

The restrictions on the three other accounts, her counsel argued, were similarly opaque and were linked to "scam and fraud reports"—a charge Gupta also refuted. Kapoor contended that these actions were seriously affecting Gupta's business as a stock market advisor and analyst, effectively threatening her livelihood and freedom of speech. She relied on the Supreme Court's landmark ruling in Shreya Singhal v. Union of India , which established that restrictions on speech under Article 19(1)(a) must be reasonable and procedurally fair.

Meta's Defense: Compliance with Community Standards

Meta, represented by Advocate Varun Pathak , countered that the reasons for the actions were already communicated to the account holder via in-app notifications. For the disabled account, the notification cited violation of community standards on "Adult Sexual Solicitation." Pathak informed the court that Meta's preliminary investigation indicated "a genuine case of adult solicitation" on that account. He sought two weeks to verify the matter more thoroughly and respond.

Regarding the other three accounts, Pathak explained that the restrictions—such as limitations on monetisation links and sharing features—stemmed from "scam and fraud reports" unrelated to copyright issues. He disputed Gupta's version of the earlier copyright strikes, asserting that those were not the basis of the current action. Pathak also raised a preliminary objection to the maintainability of the suit, arguing that it did not concern infringement of any intellectual property rights and therefore was not a proper commercial dispute under the Commercial Courts Act.

Court's Directive: Transparency Over Secrecy

Justice Bhambhani, after hearing both sides, explicitly directed: "The defendant no. 1 is directed to place on record the material based on which action has been taken against the plaintiff's accounts." While the court did not grant any interim relief —stating "No relief at this stage" —it made clear that Meta must produce the evidence supporting its enforcement decisions.

Pathak noted that depending on the nature of the material, Meta might not be able to produce certain content directly, but offered to explain the basis for the action through an affidavit. The court allowed this flexibility, effectively ordering Meta to either produce the material or provide a sworn explanation. The court also directed Meta to preserve all four accounts in their current state pending further orders.

Legal Implications: Due Process in Content Moderation

The ruling addresses a growing legal concern: the lack of transparency in social media platforms' content moderation systems. When an account with a professional registration—such as SEBI registration—is disabled or restricted, the impact extends beyond personal expression to commercial and professional interests. The Shreya Singhal framework requires that any restriction on speech must be justified with clear reasons and must comply with Article 19(2) of the Constitution.

By ordering Meta to disclose the material behind its actions, the Delhi High Court is forcing a rare instance of procedural accountability. Typically, platforms rely on internal guidelines and automated systems to enforce community standards, often leaving users with vague or no explanation. This case could set a precedent that platforms must be able to substantiate their moderation decisions with concrete evidence, especially when those decisions affect regulated professionals.

The preliminary objection on maintainability also raises interesting questions. Meta argued that the dispute does not involve intellectual property rights, which is the typical basis for suing platforms over content removal. However, Gupta's counsel framed the issue as one of livelihood and constitutional rights, potentially bypassing the narrower IP framework. If the court sustains the suit, it could open the door for more challenges to platform takedowns based on fundamental rights.

Impact on Legal Practice and Digital Professionals

For legal practitioners, the case underscores the importance of documenting communications with platforms and preserving notifications. The court's willingness to order disclosure of internal material indicates a judicial trend towards demanding greater transparency from technology giants. Lawyers representing content creators, influencers, and professionals whose work depends on social media may find this case a useful precedent.

SEBI-registered professionals, in particular, should note that their online activities may be subject to scrutiny both from regulators and platform gatekeepers. The intersection of platform policies with professional regulations creates a complex compliance landscape. If Meta is forced to produce evidence, it may reveal whether the adult solicitation claims were genuinely substantiated or the result of erroneous flagging—a common issue with automated moderation.

Conclusion: A Pending Balance

As the case moves to the next hearing in October, the legal community will watch closely to see whether Meta complies with the disclosure order and what material it presents. The court's decision to withhold interim relief suggests it is not yet convinced of Gupta's claims, but the directive for transparency is a strong signal that the judiciary is taking platform accountability seriously.

The outcome could influence how social media companies handle similar disputes in India, particularly for users who have a professional stake in their online presence. For now, the Delhi High Court has made clear that "cryptic" enforcement actions will not suffice—platforms must be prepared to show their cards.