With the advent of technology, the world has accepted the physical as well as the virtual existence of the community. Banking on various advantages of digitalised documentation has become the need of the hour. However, this also poses a great threat to the security of not only the Sovereigns but also to its individuals. Hence, comes the role of ethical hackers. The paper delves into the essential role of ethical hacking in safeguarding data and enhancing information security along with the legislative protection conferred upon them under Indian Municipal laws. Ethical hackers, also known as white hat hackers, have become indispensable in the present era of the digital world. However, it does not mean that the powers conferred upon them are absolute as they need to follow the riders of regulatory controls and ethical considerations. Following the doctrinal research method, the paper revolves around understanding the aspect of data mining used by various institutions/organisations specifically in reference to ethical hacking as required by them for the protection and promotion of their affairs. Further, the various Indian legislative provisions enshrined to control any unethical hacking practices are critical. The paper concludes with the major findings that the legislative protection in-ethical hacking is mainly conferred upon the Government organisations leaving the vacuum for the same in private sectors. Indeed, DPDA, 2023 provides slight protection to private institutions also concerning ethical hacking, nevertheless, the provision as such is quite scanty and may require the judiciary to interpret the same exhaustively.