Where is the demarcation line between recruitment and selection process:
It is observed that an MNC is collecting all sorts of information on the Date of Interview. And once the Interview is cracked, the HR immediately asks the documents from the successful candidates. The HR has no intention of selecting all the successful candidates but will shortlist among those candidates after the HR Rounds. (Or may not select anyone, based on the urgency of the requirement)
My query being - even before issuing the Offer Letter, is the company 'legally authorized' to collect copies of documents like PAN Card, Passport, ITR, Salary Breakup/Slips, Previous Company's Appointment/Appraisal Letter, Education Certificates, Form-16, Organization ID, and more importantly the 'Information Release Form' that authorizes the company to conduct verification on me, without me yet being a part of the company. There are many other less intimidating personal pieces of information like Marital Status, phone numbers of Families/References, Address, etc.
I would like to emphasize again that the info is collected WITHOUT an Offer, and purely on a 'candidacy' basis just after the Interview process.
I believe it is not ethical to database the personal information of people who are not a part of the company. However, I am interested in the legality of it.