A pipeline leakage protection vault system includes a plurality of leakage protection vault modules and a central control unit adapted to be communicably configured to each other. Each module includes a retrofittable configuration adapted to include sub-modules coupled around the pipeline. Each sub-module includes a protective casing, spacer rings and a vault door. The protective casing is adapted to compliment the portion of the pipeline to be fitted to protect the fluid in event of leakage. Further, the spacer rings are adapted to be disposed circumferentially over the protective casing in spaced relationship from each other. The spacer rings includes a plurality of components adapted to monitor parameters associated with the pipeline to generate real time data related to the pipeline. Furthermore, the vault door disposed over the top protective casing and rest over the spacer rings covering the sub-module and withholding the fluid in case of leakage.