Information Technology Act 2000

Description
Information Technology Act 2000

THE INFORMATION TECHNOLOGY ACT, 2000

Contents
Section 1. .................................................................................................................................................... 7 Section 2. Definition ................................................................................................................................... 7 Section 3 : Digital Signature – Authentication of electronic records........................................................ 11 Section 4. Legal recognition of electronic records. .................................................................................. 13 Section 5. Legal recognition of digital signatures. .................................................................................... 13 Section 6. Use of electronic records and digital signatures in Government and its agencies. ................. 14 Section 7. Retention of electronic records. .............................................................................................. 14 Section 8. Publication of rule, regulation, etc., in Electronic Gazette. ..................................................... 15 Section 9. Sections 6, 7 and 8 not to confer right to insist document should be accepted in electronic form. ......................................................................................................................................................... 15 Section 10. Power to make rules by Central Government in respect of digital signature. ...................... 16 Section 11. Attribution of electronic records. .......................................................................................... 16 Section 12. Acknowledgment of receipt................................................................................................... 17 Section 13. Time and place of dispatch and receipt of electronic record. ............................................... 17 Section 14. Secure electronic record. ....................................................................................................... 19 Section 15. Secure digital signature.......................................................................................................... 19 Section 16. Security procedure. ................................................................................................................ 20 Section 17. Appointment of Controller and other officers. ...................................................................... 20 Section 18. Functions of Controller. ......................................................................................................... 21 Section 19. Recognition of foreign Certifying Authorities. ....................................................................... 22 Section 20. Controller to act as repository. .............................................................................................. 23 Section 21. Licence to issue Digital Signature Certificates. ...................................................................... 23 Section 22. Application for licence. .......................................................................................................... 23 Section 23. Renewal of licence. ................................................................................................................ 24 Section 24. Procedure for grant or rejection of licence. .......................................................................... 24 Section 25. Suspension of licence. ............................................................................................................ 24 Section 26. Notice of suspension or revocation of licence. ...................................................................... 25 Section 27. Power to delegate. ................................................................................................................. 25 Section 28. Power to investigate contraventions. .................................................................................... 25 Section 29. Access to computers and data. .............................................................................................. 25 Section 30. Certifying Authority to follow certain procedures. ................................................................ 26 2

Section 31. Certifying Authority to ensure compliance of the Act, etc .................................................... 26 Section 32. Display of licence. .................................................................................................................. 27 Section 33. Surrender of licence. .............................................................................................................. 27 Section 34. Disclosure. .............................................................................................................................. 27 Section 35. Certifying Authority to issue Digital Signature Certificate ..................................................... 28 Section 36. Representations upon issuance of DSC ................................................................................. 28 Section 37. Suspension of DSC ................................................................................................................. 29 Section 38. Revocation of Digital Signature Certificate ............................................................................ 29 Section 39. Notice of suspension or revocation ....................................................................................... 30 Section 40. Generating Key pair ............................................................................................................... 30 Section 41. Acceptance of Digital Signature Certificate ........................................................................... 30 Section 42. Control of the private key ...................................................................................................... 30 Section 43. Penalty and Compensation for damage to computer, computer system, etc (Amended vide ITAA-2008) ................................................................................................................................................ 31 Section 43(A) Compensation for failure to protect data (Inserted vide ITAA 2006) ............................... 32 Section 44. Penalty for failure to furnish information, return, etc ......................................................... 33 Section 45. Residuary Penalty.................................................................................................................. 33 Section 46. Power to Adjudicate.............................................................................................................. 34 Section 47. Factors to be taken into account by the adjudicating officer ............................................... 34 Section 48: ................................................................................................................................................ 35 Section 49: ................................................................................................................................................ 35 Section 50: Qualifications for appointment as Presiding Officer of the Cyber Regulation Appellate Tribunal ..................................................................................................................................................... 35 Section 51: Term of Office ........................................................................................................................ 36 Section 52: Salary, Allowances and other terms of conditions of service of the Presiding Officer.......... 36 Section 53: Filling up of Vacancies ............................................................................................................ 36 Section 54: Resignation and Removal....................................................................................................... 36 Section 55: Orders constituting Appellate Tribunal to be final ................................................................ 37 Section 56: Staff of the Appellate Tribunal ............................................................................................... 37 Section 57: Appeal to the Appellate Tribunal ........................................................................................... 37 Section 58: Procedure and Powers to the Cyber Appellate Tribunal ....................................................... 38 Section 59: Right to Legal Representation................................................................................................ 38 3

Section 60: Limitation ............................................................................................................................... 38 Section 61: Civil Court not to have jurisdiction ........................................................................................ 38 Section 62: Appeal to the High court ........................................................................................................ 39 Section 63: Compounding of Contraventions ........................................................................................... 39 Section 64: Recovery of Penalty ............................................................................................................... 39 Section 65: Tampering with computer Source Documents ...................................................................... 39 Section 66: Computer related offences .................................................................................................... 40 Section 66 A: Punishment for sending offensive messages through communication service, etc. ( Introduced vide ITAA 2006/8) .................................................................................................................. 40 Section 66 B: Punishment for dishonestly receiving stolen computer resource or communication device (Inserted Vide ITA 2008) ........................................................................................................................... 41 Section 66C: Punishment for identity theft. (Inserted Vide ITA 2008) ..................................................... 41 Section 66D: Punishment for cheating by personation by using computer resource (Inserted Vide ITA 2008) ......................................................................................................................................................... 41 Section 66E: Punishment for violation of privacy.(Inserted Vide ITA 2008)............................................. 41 Section 66F: Punishment for cyber terrorism........................................................................................... 42 Section 67: Punishment for publishing or transmitting obscene material in electronic form ................. 43 Section 67 A: Punishment for publishing or transmitting of material containing sexually explicit act, etc. in electronic form (Inserted vide ITAA 2006)............................................................................................ 43 Section 67 B: Punishment for publishing or transmitting of material depicting children in sexually explicit act, etc. in electronic form. .......................................................................................................... 44 Section 67 C: Preservation and Retention of information by intermediaries .......................................... 44 Section 68: Power of Controller to give directions (Amended Vide ITAA 2006) ...................................... 45 Section 69: Powers to issue directions for interception or monitoring or decryption of any information through any computer resource (Substituted Vide ITAA 2006) ........................................... 45 Section 69 A: Power to issue directions for blocking for public access of any information through any computer resource ................................................................................................................................... 46 Section 69B: Power to authorize to monitor and collect traffic data or information through any computer resource for Cyber Security ..................................................................................................... 46 Section 70 A: National nodal agency. (Inserted vide ITAA 2006/8)............................................................. 47 Section 70 B: Indian Computer Emergency Response Team to serve as national agency for incident response ................................................................................................................................................... 47 Section 71: Penalty for misrepresentation ............................................................................................... 48 Section 72: Breach of confidentiality and privacy .................................................................................... 49 4

Section 72 A: Punishment for Disclosure of information in breach of lawful contract (Inserted vide ITAA2006) ......................................................................................................................................................... 49 Section 73: Penalty for publishing electronic Signature Certificate false in certain particulars .............. 49 Section 74: Publication for fraudulent purpose ....................................................................................... 50 Section 75: Act to apply for offence or contraventions committed outside India ................................... 50 Section 76: Confiscation ........................................................................................................................... 50 Section 77: Compensation, penalties or confiscation not to interfere with other punishment. (Substituted Vide ITAA-2006) ................................................................................................................... 51 Section 77 A: Compounding of Offences .................................................................................................. 51 Section 77 B: Offences with three years imprisonment to be cognizable................................................ 51 Section 78: Power to investigate offences (Amended Vide ITAA 2006) ................................................... 52 Section 79: Exemption from liability of intermediary in certain cases ..................................................... 52 Section 80. Power of police officer and other officers to enter, search, etc............................................ 53 Section 81. Act to have overriding effect. ................................................................................................ 53 Section 82. Controller, Deputy Controller and Assistant Controllers to be public servants. ................... 54 Section 83. Power to give directions. ....................................................................................................... 54 Section 84. Protection of action taken in good faith. ............................................................................... 54 Section 85. Offences by companies. ......................................................................................................... 54 Section 86. Removal of difficulties. .......................................................................................................... 55 Section 87. Power of Central Government to make rules. ....................................................................... 55 Section 88. Constitution of Advisory Committee. .................................................................................... 57 Section 89. Power of Controller to make regulations. ............................................................................. 57 Section 90. Power of State Government to make rules. .......................................................................... 58 Section 91. Amendment of Act 45 of 1860............................................................................................... 58 Section 92. Amendment of Act 1 of 1872................................................................................................. 58 Section 93. Amendment of Act 18 of 1891............................................................................................... 58 94. Amendment of Act 2 of 1834. ............................................................................................................ 58 Cases ......................................................................................................................................................... 59 Case 1: ....................................................................................................................................................... 59 Case 2: ....................................................................................................................................................... 59 Case 3: ....................................................................................................................................................... 62 Case 4: BPO Data theft case...................................................................................................................... 63 5

Case 5: State of Tamil Nadu Vs Suhas Katti Conviction ............................................................................ 64 Case 6: ....................................................................................................................................................... 65 NDMC ELECTRICITY BILLING FRAUD CASE ................................................................................................ 66 R v/s Governor of Brixton prison and another. ........................................................................................ 66 State of Tamil Nadu Vs Suhas Katti Conviction......................................................................................... 66 Avnish Bajaj (CEO of bazzee.com – now a part of the eBay group of companies) ................................... 67 DASKHINA Kannada police have solved the first case of cyber crime in the district ............................... 67 R v/s Gold & Schifreen .............................................................................................................................. 67 R v/s Whiteley ........................................................................................................................................... 68 Frios v/s State of Kerela ............................................................................................................................ 68 Syed Asifuddin case .................................................................................................................................. 68 Parliament Attack Case ............................................................................................................................. 68

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IT Act was enacted on 17th May 2000 and India was the 12th nation in the world to adopt cyber laws. IT Act is based on Model law on e-commerce adopted by UNCITRAL. The main objectives of IT Act include the following: ? To provide legal recognition for transactions carried out by means of electronic data interchange, and other means of electronic communication, commonly referred to as "electronic commerce? ? To facilitate electronic filing of documents with Government agencies and E-Payments ? To amend the Indian Penal Code, Indian Evidence Act,1872, the Banker‘s Books Evidence Act 1891,Reserve Bank of India Act ,1934 ? To give legal recognition to digital signature for accepting any agreement in electronic form ? To stop computer crime and protect privacy of internet users ? To give legal recognition for keeping books of accounts by bankers and other companies in electronic form

Section 1.
The extent of application: It extends to whole of India and also applies to any offence or contravention there under committed outside India by any person {section 1 (2)} read with Section 75- Act applies to offence or contravention committed outside India by any person irrespective of his nationality, if such act involves a computer, computer system or network located in India.

Section 2. Definition
Some important definitions as described in Section 2 of IT Act include: (a) "Access" with its grammatical variations and cognate expressions means gaining entry into, instructing or communicating with the logical, arithmetical, or memory function resources of a computer, computer system or computer network. (b) "addressee" means a person who is intended by the originator to receive the electronic record but does not include any intermediary. (c) "adjudicating officer" means an adjudicating officer appointed under subsection (1) of section 46.
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(d) "affixing digital signature" with its grammatical variations and cognate expressions means adoption of any methodology or procedure by a person for the purpose of authenticating an electronic record by means of digital signature. (e) "appropriate Government" means as respects any matter— (i) Enumerated in List II of the Seventh Schedule to the Constitution (ii) relating to any State law enacted under List III of the Seventh Schedule to the Constitution, the State Government and in any other case, the Central Government (f) "asymmetric crypto system" means a system of a secure key pair consisting of a private key for creating a digital signature and a public key to verify the digital signature (g) "Certifying Authority" means a person who has been granted a licence to issue a Digital Signature Certificate under section 24 (h) "certification practice statement" means a statement issued by a Certifying Authority to specify the practices that the Certifying Authority employs in issuing Digital Signature Certificates (i) "computer" means any electronic magnetic, optical or other high-speed data processing device or system which performs logical, arithmetic, and memory functions by manipulations of electronic, magnetic or optical impulses, and includes all input, output, processing, storage, computer software, or communication facilities which are connected or related to the computer in a computer system or computer network (j) "computer network" means the interconnection of one or more computers through— (i) the use of satellite, microwave, terrestrial line or other communication media; and (ii) terminals or a complex consisting of two or more interconnected computers whether or not the interconnection is continuously maintained (k) "computer resource" means computer, computer system, computer network, data, computer data base or software (l) "computer system" means a device or collection of devices, including input and output support devices and excluding calculators which are not programmable and capable of being used in conjunction with external files, which contain computer programmes, electronic instructions, input data and output data, that performs logic, arithmetic, data storage and retrieval, communication control and other functions (m) "Controller" means the Controller of Certifying Authorities appointed under sub-section (l) of section 17 "Cyber Appellate Tribunal" means the Cyber Regulations Appellate Tribunal established under sub-section (1) of section 48
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(o) "data" means a representation of information, knowledge, facts, concepts or instructions which are being prepared or have been prepared in a formalised manner, and is intended to be processed, is being processed or has been processed in a computer system or computer network, and may be in any form (including computer printouts magnetic or optical storage media, punched cards, punched tapes) or stored internally in the memory of the computer (p) "digital signature" means authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3 (q) "Digital Signature Certificate" means a Digital Signature Certificate issued under subsection (4) of section 35 (r) "electronic form" with reference to information means any information generated, sent, received or stored in media, magnetic, optical, computer memory, micro film, computer generated micro fiche or similar device (s) "Electronic Gazette" means the Official Gazette published in the electronic form (t) "electronic record" means data, record or data generated, image or sound stored, received or sent in an electronic form or micro film or computer generated micro fiche (u) "function", in relation to a computer, includes logic, control arithmetical process, deletion, storage and retrieval and communication or telecommunication from or within a computer (v) "information" includes data, text, images, sound, voice, codes, computer programmes, software and databases or micro film or computer generated micro fiche (w) "intermediary" with respect to any particular electronic message means any person who on behalf of another person receives, stores or transmits that message or provides any service with respect to that message (x) "key pair", in an asymmetric crypto system, means a private key and its mathematically related public key, which are so related that the public key can verify a digital signature created by the private key "law" includes any Act of Parliament or of a State Legislature, Ordinances promulgated by the President or a Governor, as the case may be. Regulations made by the President under article 240, Bills enacted as President's Act under sub-clause (a) of clause (1) of article 357 of the Constitution and includes rules, regulations, byelaws and orders issued or made thereunder (z) "licence" means a licence granted to a Certifying Authority under section 24 (za) "originator" means a person who sends, generates, stores or transmits any electronic message or causes any electronic message to be sent, generated, stored or transmitted to any other person but does not include an intermediary;
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(zb) "prescribed" means prescribed by rules made under this Act; (zc) "private key" means the key of a key pair used to create a digital signature; (zd) "public key" means the key of a key pair used to verify a digital signature and listed in the Digital Signature Certificate; (ze) "secure system" means computer hardware, software, and procedure that— (a) are reasonably secure from unauthorised access and misuse; (b) provide a reasonable level of reliability and correct operation; (c) are reasonably suited to performing the intended functions; and (d) adhere to generally accepted security procedures; (zf) "security procedure" means the security procedure prescribed under section 16 by the Central Government; (zg) "subscriber" means a person in whose name the Digital Signature Certificate is issued; (zh) "verify" in relation to a digital signature, electronic record or public key, with its grammatical variations and cognate expressions means to determine whether— (a) the initial electronic record was affixed with the digital signature by the use of private key corresponding to the public key of the subscriber; (b) the initial electronic record is retained intact or has been altered since such electronic record was so affixed with the digital signature. This act is not applicable to the following: ? (a) a negotiable instrument (Other than a cheque) as defined in section 13 of the Negotiable Instruments Act, 1881 ? (b) a power-of-attorney as defined in section 1A of the Powers-of-Attorney Act, 1882 ? (c) a trust as defined in section 3 of the Indian Trusts Act, 1882 ? (d) a will as defined in clause (h) of section 2 of the Indian Succession Act, 1925 including any other testamentary disposition ? (e) any contract for the sale or conveyance of immovable property or any interest in such property; ? (f) any such class of documents or transactions as may be notified by the Central Government

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Section 3 : Digital Signature – Authentication of electronic records
(1) Subject to the provisions of this section any subscriber may authenticate an electronic record by affixing his digital signature. (2) The authentication of the electronic record shall be effected by the use of asymmetric crypto system and hash function which envelop and transform the initial electronic record into another electronic record. Explanation.—For the purposes of this sub-section, "hash function" means an algorithm mapping or translation of one sequence of bits into another, generally smaller, set known as "hash result" such that an electronic record yields the same hash result every time the algorithm is executed with the same electronic record as its input making it computationally infeasible— (a) to derive or reconstruct the original electronic record from the hash result produced by the algorithm (b) that two electronic records can produce the same hash result using the algorithm. (3) Any person by the use of a public key of the subscriber can verify the electronic record. (4) The private key and the public key are unique to the subscriber and constitute a functioning key pair.

Secure Digital Signature
If by application of a security procedure agreed to by the parties concerned, it can be verified that a digital signature, at the time it was affixed, was: (a) (b) unique to the subscriber affixing it; capable of identifying such subscriber;

(c) created in a manner or using a means under the exclusive control of the subscriber and is linked to the electronic record to which it relates in such a manner that if the electronic record was altered the digital signature would be invalidated, then such digital signature shall be deemed to be a secure digital signature

Essential steps of the digital signature process
? STEP 1 The signatory is the authorized holder a unique cryptographic key pair; ? STEP 2 The signatory prepares a data message (for example, in the form of an electronic mail message) on a computer;

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? STEP 3 The signatory prepares a ?message digest?, using a secure hash algorithm. Digital signature creation uses a hash result derived from and unique to the signed message; ? STEP 4 The signatory encrypts the message digest with the private key. The private key is applied to the message digest text using a mathematical algorithm. The digital signature consists of the encrypted message digest, ? STEP 5 The signatory typically attaches or appends its digital signature to the message; ? STEP 6 The signatory sends the digital signature and the (unencrypted or encrypted) message to the relying party electronically; ? STEP 7 The relying party uses the signatory‘s public key to verify the signatory‘s digital signature. Verification using the signatory‘s public key provides a level of technical assurance that the message came exclusively from the signatory; ? STEP 8 The relying party also creates a ?message digest? of the message, using the same secure hash algorithm; ? STEP 9 The relying party compares the two message digests. If they are the same, then the relying party knows that the message has not been altered after it was signed. Even if one bit in the message has been altered after the message has been digitally signed, the message digest created by the relying party will be different from the message digest created by the signatory; ? STEP 10 Where the certification process is resorted to, the relying party obtains a certificate from the certification service provider (including through the signatory or otherwise), which confirms the digital signature on the signatory‘s message. The certificate contains the public key and name of the signatory (and possibly additional information), digitally signed by the certification service provider. Before understanding various sections covered under this chapter III and IV lets understand few terms. Electronic Commerce: Transactions over the electronic systems such as the Internet and other computer networks that include formation of contracts, delivery of information and Services and finally delivery of Content. Electronic commerce can take place between businesses (business-to-business or B2B) or between businesses and consumers called business-toconsumer or B2C.

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Electronic Governance: This is the special kind of E-commerce where one of the parties doing transaction is government .It is aimed towards making govt. services available to citizens in transparent manner. Electronic Record(ER): Electronic record produced by a computer. Stored in digital form, and cannot be perceived without using a computer. It can be deleted, modified and rewritten without leaving a mark. A copy is indistinguishable from the original. It can‘t be sealed in the traditional way, where the author affixes his signature.

ELECTRONIC GOVERNANCE Section 4. Legal recognition of electronic records.
Where any law provides that information or any other matter shall be in writing or in the typewritten or printed form, then, in spite of anything contained in such law, such requirement shall be deemed to have been satisfied if such information or matter is (a) Rendered or made available in an electronic form (b) Accessible so as to be usable for a subsequent reference.

Section 5. Legal recognition of digital signatures.
Where any law provides that information or any other matter shall be authenticated by affixing the signature or any document shall be signed or bear the signature of any person (hen, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied, if such information or matter is authenticated by means of digital signature affixed in such manner as may be prescribed by the Central Government. Explanation.For the purposes of this section, "signed", with its grammatical variations and cognate expressions, shall, with reference to a person, mean affixing of his hand written signature or any mark on any document and the expression "signature" shall be construed accordingly. Description: As per this section says that any law that requires an authentication by person‘s signature can also be authenticated by digital signature provided it is affixed in such manner as may be prescribed by the Central Government

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Section 6. Use of electronic records and digital signatures in Government and its agencies.
(1) Where any law provides for(a) the filing of any form. application or any other document with any office, authority, body or agency owned or controlled by the appropriate Government in a particular manner; (b) the issue or grant of any license, permit, sanction or approval by whatever name called in a particular manner; (c) the receipt or payment of money in a particular manner, then, notwithstanding anything contained in any other law for the time being in force, such requirement shall be deemed to have been satisfied if such filing, issue, grant, receipt or payment, as the case may be, is effected by means of such electronic form as may be prescribed by the appropriate Government. (2) The appropriate Government may, for the purposes of sub-section (1), by rules, prescribe(a) the manner and format in which such electronic records shall be filed, created or issued; (b) the manner or method of payment of any fee or charges for filing, creation or issue any electronic record under clause Description: The ER can be used where any law provides for a) the filing of any form, application or any other document with any office b) the issue or grant of any license, permit, sanction or approval by whatever name called in a particular manner c) the receipt or payment of money in a particular manner The user should abide by the manner and methods presented by law for presentation of ER.

Section 7. Retention of electronic records.
(1) Where any law provides that documents, records or information shall be retained for any specific period, then, that requirement shall be deemed to have been satisfied if such documents, records or information are retained in the electronic form, if(a) the information contained therein remains accessible so as to be usable for a subsequent reference; (b) the electronic record is retained in the format in which it was originally generated, sent or received or in a format which can be demonstrated to represent accurately the information originally generated, sent or received; (c) the details which will facilitate the identification of the origin, destination, date and
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time of despatch or receipt of such electronic record are available in the electronic record: Provided that this clause does not apply to any information which is automatically generated solely for the purpose of enabling an electronic record to be despatched or received. (2) Nothing in this section shall apply to any law that expressly provides for the retention of documents, records or information in the form of electronic records. Description: Where any law provides that documents, records or information shall be retained for any specific period, then this is applicable for electronic records. ? The information contained therein remains accessible for a subsequent reference. ? The electronic record is retained in the format in which it was originally generated, sent or received or in a format which can be demonstrated to represent accurately the information originally generated, sent or received. ? The details which will facilitate the identification of the origin, destination, date and time of dispatch or receipt of such electronic record are available in the electronic record provided that this clause does not apply to any information which is automatically generated solely for the purpose of enabling an electronic record to be dispatched or received. Nothing in this section shall apply to any law that expressly provides for the retention of documents, records or information in the form of electronic records.

Section 8. Publication of rule, regulation, etc., in Electronic Gazette.
Where any law provides that any rule, regulation, order, bye-law, notification or any other matter shall be published in the Official Gazette, then, such requirement shall be deemed to have been satisfied if such rule, regulation, order, bye-law, notification or any other matter is published in the Official Gazette or Electronic Gazette: Provided that where any rule, regulation, order, bye-law, notification or any other matter is published in the Official Gazette or Electronic Gazette, the date of publication shall be deemed to be the date of the Gazette which was first published in any form.

Section 9. Sections 6, 7 and 8 not to confer right to insist document should be accepted in electronic form.
Nothing contained in sections 6, 7 and 8 shall confer a right upon any person to insist that any Ministry or Department of the Central Government or the State Government or any authority or body established by or under any law or controlled or funded by the Central or
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State Government should accept, issue, create, retain and preserve any document in the form of electronic records or effect any monetary transaction in the electronic form. Description: Any person can not insist that any Ministry or Department of Any Government should accept, issue, create, retain and preserve any document in the form of electronic records or effect any monetary transaction in the electronic form.

Section 10. Power to make rules by Central Government in respect of digital signature.
The Central Government may, for the purposes of this Act, by rules, prescribe— (a) the type of digital signature (b) the manner and format in which the digital signature shall be affixed; (c) the manner or procedure which facilitates identification of the person affixing the digital signature; (c) control processes and procedures to ensure adequate integrity, security and confidentiality of electronic records or payments; and (d) any other matter which is necessary to give legal effect to digital signatures. Description: This section provides various rights that government has regarding digital signature.

ATTRIBUTION, ACKNOWLEDGMENT AND DESPATCH OF ELECTRONIC RECORDS Section 11. Attribution of electronic records.
An electronic record shall be attributed to the originator— (a) if it was sent by the originator himself; (b) by a person who had the authority to act on behalf of the originator in respect of that electronic record; or (c) by an information system programmed by or on behalf of the originator to operate automatically. Description: An electronic record shall be attributed to the originator in following cases: a) Sent by Himself b) Authorized person on behalf of him c) Information System on behalf of that person.

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Section 12. Acknowledgment of receipt.
(1) Where the originator has not agreed with the addressee that the acknowledgment of receipt of electronic record be given in a particular form or by a particular method, an acknowledgment may be given by(a) any communication by the addressee, automated or otherwise; or (b) any conduct of the addressee, sufficient to indicate to the originator that the electronic record has been received. (2) Where the originator has stipulated that the electronic record shall be binding only on receipt of an acknowledgment of such electronic record by him, then unless acknowledgment has been so received, the electronic record shall be deemed to have been never sent by the originator. (3) Where the originator has not stipulated that the electronic record shall be binding only on receipt of such acknowledgment, and the acknowledgment has not been received by the originator within the time specified or agreed or, if no time has been specified or agreed to within a reasonable time, then the originator may give notice to the addressee stating that no acknowledgment has been received by him and specifying a reasonable time by which the acknowledgment must be received by him and if no acknowledgment is received within the aforesaid time limit he may after giving notice to the addressee, treat the electronic record as though it has never been sent. Description: There are 2 different scenarios described under this section : 1. If Originator has not specified particular method- Any communication automated or otherwise or conduct to indicate the receipt 2. If specified that the receipt is necessary- Then unless acknowledgement has been received Electronic Record shall be deemed to have been never sent Where ack. not received within time specified or within reasonable time the originator may give notice to treat the Electronic record as though never sent

Section 13. Time and place of dispatch and receipt of electronic record.
(1) Save as otherwise agreed to between the originator and the addressee, the dispatch of an electronic record occurs when it enters a computer resource outside the control of the originator. (2) Save as otherwise agreed between the originator and the addressee, the time of receipt of an electronic record shall be determined as follows, namely :17

(a) if the addressee has designated a computer resource for the purpose of receiving electronic records,(i) receipt occurs at the time when the electronic, record enters the designated computer resource; or (ii) if the electronic record is sent to a computer resource of the addressee that is not the designated computer resource, receipt occurs at the time when the electronic record is retrieved by the addressee; (b) if the addressee has not designated a computer resource along with specified timings, if any, receipt occurs when the electronic record enters the computer resource of the addressee. (3) Save as otherwise agreed to between the originator and the addressee, an electronic record is deemed to be dispatched at the place where the originator has his place of business, and is deemed to be received at the place where the addressee has his place of business. (4) The provisions of sub-section (2) shall apply notwithstanding that the place where the computer resource is located may be different from the place where the electronic record is deemed to have been received under sub-section (3). (5) For the purposes of this section,(a)if the originator or the addressee has more than one place of business, the principal place of business, shall be the place of business; (b) if the originator or the addressee does not have a place of business, his usual place of residence shall be deemed to be the place of business; (c) "usual place of residence", in relation to a body corporate, means the place where it is registered. Description: The dispatch of an electronic record occurs when it enters a computer resource outside the control of the originator. The time of receipt of an electronic record shall be determined as follows, namely:— (a) If the addressee has designated a computer resource for the purpose of receiving electronic records then ? Receipt occurs at the time when the electronic, record enters the designated computer resource; or ? If the electronic record is sent to a computer resource of the addressee that is not the designated computer resource, receipt occurs at the time when the electronic record is retrieved by the addressee

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(b) If the addressee has not designated a computer resource along with specified timings then any receipt occurs when the electronic record enters the computer resource of the addressee. An electronic record is to be dispatched at the place where the originator has his place of business. Some important pointers to keep in mind w.r.t. this section are: ? If the originator or the addressee has more than one place of business, the principal place of business, shall be the place of business; ? If the originator or the addressee does not have a place of business, his usual place of residence shall be deemed to be the place of business; ? Usual place of residence is the place where body corporate is registered SECURE ELECTRONIC RECORDS AND SECURE DIGITAL SIGNATURES

Section 14. Secure electronic record.
Where any security procedure has been applied to an electronic record at a specific point of time, then such record shall be deemed to be a secure electronic record from such point of time to the time of verification. Description: It states that any electronic document will be considered a secure electronic record only when some security procedure is applied on that document. And it will be considered as secure document from the date on which the security procedure is applied on the electronic record.

Section 15. Secure digital signature.
If, by application of a security procedure agreed to by the parties concerned, it can be verified that a digital signature, at the time it was affixed, was— (a) Unique to the subscriber affixing it; (b) Capable of identifying such subscriber; (c) Created in a manner or using a means under the exclusive control of the subscriber and is linked to the electronic record to which it relates in such a manner that if the electronic record was altered the digital signature would be invalidated, then such digital signature shall be deemed to be a secure digital signature. Description: If any two parties agree to the usage of the digital signature on any document as a proof of their transaction or any business procedure then both of the concerned parties have to check the following three conditions in establishing the security of the digital signature used
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-

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It should be unique i.e. no other person should be having the same digital signature as agreed by the concerned parties The digital signature used should be able to identify the person for whom it is used. If one is not able to identify the person from the digital signature then the digital signature cannot be considered as secure digital signature. The signature should be an integral part of the document i.e if there is any changes in the agreement document then the digital signature should be invalidated and the same should not be considered by the concerned parties.

Section 16. Security procedure.
The Central Government shall for the purposes of this Act prescribe the security procedure having regard to commercial circumstances prevailing at the time when the procedure was used, including— (a) The nature of the transaction; (b) The level of sophistication of the parties with reference to their technological capacity; (c) The volume of similar transactions engaged in by other parties; (a) The availability of alternatives offered to but rejected by any party; (e) The cost of alternative procedures; and (f) The procedures in general use for similar types of transactions or communications.

Description: The central government should provide the detailed procedure so ensure the safe and secure digital documents at the time of transaction of any document between the concerned parties. While defining these procedures, the government should take the following factors into consideration The Nature of transaction being carried out The technology available with the parties Procedures used in similar transactions used by other parties All the alternatives and concerned cost on the same REGULATION OF CERTIFYING AUTHORITIES

Section 17. Appointment of Controller and other officers.
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(1) The Central Government may, by notification in the Official Gazette, appoint a Controller of Certifying Authorities for the purposes of this Act and may also by the same or subsequent notification appoint such number of Deputy Controllers and Assistant Controllers as it deems fit. (2) The Controller shall discharge his functions under this Act subject to the general control and directions of the Central Government. (3) The Deputy Controllers and Assistant Controllers shall perform the functions assigned to them by the Controller under the general superintendence and control of the Controller. (4) The qualifications, experience and terms and conditions of service of Controller, Deputy Controllers and Assistant Controllers shall be such as may be prescribed by the Central Government. (5) The Head Office and Branch Office of the office of the Controller shall be at such places as the Central Government may specify, and these may be established at such places as the Central Government may think fit. (6) There shall be a seal of the Office of the Controller. Description: Structure of Controller office - Central government appoints Controller - May can appoint Deputy Controller too - The qualification and experience for each of above designations is set by the central government before appointing the same.

Section 18. Functions of Controller.
The Controller may perform all or any of the following functions, namely:— (a) Exercising supervision over the activities of the Certifying Authorities; (b) Certifying public keys of the Certifying Authorities; (c) Laying down the standards to be maintained by the Certifying Authorities; (d) Specifying the qualifications and experience which employees of the Certifying Authorities should possess; (e) Specifying the conditions subject to which the Certifying Authorities shall conduct their business;

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(f) Specifying the contents of written, printed or visual materials and advertisements that may be distributed or used in respect of a Digital Signature Certificate and the public key; (g) Specifying the form and content of a Digital Signature Certificate and the key, (h) Specifying the form and manner in which accounts shall be maintained by the Certifying Authorities; (i) Specifying the terms and conditions subject to which auditors may be appointed and the remuneration to be paid to them; (j) Facilitating the establishment of any electronic system by a Certifying Authority either solely or jointly with other Certifying Authorities and regulation of such systems; (k) Specifying the manner in which the Certifying Authorities shall conduct their dealings with the subscribers; (l) Resolving any conflict of interests between the Certifying Authorities and the subscribers; (m) Laying down the duties of the Certifying Authorities; Maintaining a data base containing the disclosure record of every Certifying Authority containing such particulars as may be specified by regulations, which shall be accessible to public. Description: Main functions of Controller and his office: - Regulate and supervise the CA - Provide CA with the guidelines and regulation that CA must adhere to - Maintain the data for each digital signature issued by each CA - Resolve conflict

Section 19. Recognition of foreign Certifying Authorities.
(1) Subject to such conditions and restrictions as may be specified by regulations, the Controller may with the previous approval of the Central Government, and by notification in the Official Gazette, recognise any foreign Certifying Authority as a Certifying Authority for the purposes of this Act. (2) Where any Certifying Authority is recognised under sub-section (1), the Digital Signature Certificate issued by such Certifying Authority shall be valid for the purposes of this Act. (3) The Controller may, if he is satisfied that any Certifying Authority has contravened any of the conditions and restrictions subject to which it was granted recognition under subsection (1) he may, for reasons to be recorded in writing, by notification in the Official Gazette, revoke such recognition.
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Section 20. Controller to act as repository.
(1) The Controller shall be the repository of all Digital Signature Certificates issued under this Act. (2) The Controller shall— (a) Make use of hardware, software and procedures that are secure fromm intrusion and misuse; (b) Observe such other standards as may be prescribed by the Central Government, to ensure that the secrecy and security of the digital signatures are assured. (3) The Controller shall maintain a computerised data base of all public keys in such a manner that such data base and the public keys are available to any member of the public.? Description: The controller is also considered as the repository of all the digital signatures issues by all the CA under him. Controller should maintain the entire database and ensure that it is secure using various hardware and software.

Section 21. Licence to issue Digital Signature Certificates.
(1) Subject to the provisions of sub-section (2), any person may make an application, to the Controller, for a licence to issue Digital Signature Certificates. (2) No licence shall be issued under sub-section (1), unless the applicant fulfills such requirements with respect to qualification, expertise, manpower, financial resources and other infrastructure facilities, which are necessary to issue Digital Signature Certificates as may be prescribed by the Central Government (3) A licence granted under this section shall— (a) Be valid for such period as may be prescribed by the Central Government; (b) Not be transferable or heritable; (c) Be subject to such terms and conditions as may be specified by the regulations.

Section 22. Application for licence.
(1) Every application for issue of a licence shall be in such form as may be prescribed by the Central Government. (2) Every application for issue of a licence shall be accompanied by—
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(a) A certification practice statement; (b) A statement including the procedures with respect to identification of the applicant; (c) Payment of such fees, not exceeding twenty-five thousand rupees as may be prescribed by the Central Government; (d) Such other documents, as may be prescribed by the Central Government.

Section 23. Renewal of licence.
An application for renewal of a licence shall be— (a) In such form; (b) Accompanied by such fees, not exceeding five thousand rupees, as may be prescribed by the Central Government and shall be made not less than forty-five days before the date of expiry of the period of validity of the licence.

Section 24. Procedure for grant or rejection of licence.
The Controller may, on receipt of an application under sub-section (1) of section 21, after considering the documents accompanying the application and such other factors, as he deems fit, grant the licence or reject the application: Provided that no application shall be rejected under this section unless the applicant has been given a reasonable opportunity of presenting his case.

Section 25. Suspension of licence.
(1) The Controller may, if he is satisfied after making such inquiry, as he may think fit, that a Certifying Authority has,— (a) Made a statement in, or in relation to, the application for the issue or renewal of the licence, which is incorrect or false in material particulars; (b) Failed to comply with the terms and conditions subject to which the licence was granted; (c) Failed to maintain the standards specified under clause (b) of sub-section (2) of section 20; (d) Contravened any provisions of this Act, rule, regulation or order made there under, revoke the licence:
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Provided that no licence shall be revoked unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed revocation. (2) The Controller may, if he has reasonable cause to believe that there is any ground for revoking a licence under sub-section (1), by order suspend such licence pending the completion of any inquiry ordered by him: Provided that no licence shall be suspended for a period exceeding ten days unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed suspension. (3) No Certifying Authority whose licence has been suspended shall issue any Digital Signature Certificate during such suspension.

Section 26. Notice of suspension or revocation of licence.
(1) Where the licence of the Certifying Authority is suspended or revoked, the Controller shall publish notice of such suspension or revocation, as the case may be, in the database maintained by him. (2) Where one or more repositories are specified, the Controller shall publish notices of such suspension or revocation, as the case may be, in all such repositories: Provided that the data base containing the notice of such suspension or revocation, as the case may be, shall be made available through a web site which shall be accessible round the clock: Provided further that the Controller may, if he considers necessary, publicise the contents of database in such electronic or other media, as he may consider appropriate.

Section 27. Power to delegate.
The Controller may, in writing, authorise the Deputy Controller, Assistant Controller or any officer to exercise any of the powers of the Controller under this Chapter.

Section 28. Power to investigate contraventions.
(1) The Controller or any officer authorised by him in this behalf shall take up for investigation any contravention of the provisions of this Act, rules or regulations made there under. (2) The Controller or any officer authorised by him in this behalf shall exercise the like powers which are conferred on Income-tax authorities under Chapter XIII of the Income-tax Act, 1961 and shall exercise such powers, subject to such limitations laid down under that Act.

Section 29. Access to computers and data.
(1)Without prejudice to the provisions of sub-section (1) of section 69, the Controller or any person authorised by him shall, if he has reasonable cause to suspect that any contravention of the provisions of this Act, rules or regulations made there under has been committed, have
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access to any computer system, any apparatus, data or any other material connected with such system, for the purpose of searching or causing a search to be made for obtaining any information or data contained in or available to such computer system. (2) For the purposes of sub-section (1), the Controller or any person authorised by him may, by order, direct any person in charge of, or otherwise concerned with the operation of, the computer system, data apparatus or material, to provide him with such reasonable technical and other assistance as he may consider necessary.

Section 30. Certifying Authority to follow certain procedures.
Every Certifying Authority shall, — (a) Make use of hardware, software and procedures that are secure from intrusion and misuse; (b) Provide a reasonable level of reliability in its services which are reasonably suited to the performance of intended functions; (c) Adhere to security procedures to ensure that the secrecy and privacy of the digital signatures are assured; and (d) Observe such other standards as may be specified by regulations.? Description: Every Certifying authority have to maintain a minimum level of security and secrecy as pre the guidelines set in the IT Act including - Quality of hardware, software used in the process. - Quality of service provided - Usage of security procedures - And other regulations

Section 31. Certifying Authority to ensure compliance of the Act, etc
Every Certifying Authority shall ensure that every person employed or otherwise engaged by it complies, in the course of his employment or engagement, with the provisions of this Act, rules, regulations and orders made there under.? Description: The certifying authority have to ensure that all the people engaged by it, directly or indirectly, in the process of validating and issuance of digital signature should comply with all the rules and regulations set in this IT Act.

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Section 32. Display of licence.
Every Certifying Authority shall display its licence at a conspicuous place of the premises in which it carries on its business.

Section 33. Surrender of licence.
(1) Every Certifying Authority whose licence is suspended or revoked shall immediately after such suspension or revocation, surrender the licence to the Controller. (2) Where any Certifying Authority fails to surrender a licence under sub-section (1), the person in whose favour a licence is issued, shall be guilty of an offence and shall be punished with imprisonment which may extend up to six months or a fine which may extend up to ten thousand rupees or with both. Description: - If Controller suspends, revokes or cancels the licence of any Certifying authority to issue the digital signature, then the certifying authority should surrender the licence to the controller from immediate effect. - If the Certifying authority fails to surrender the same then it will be considered as guilty and prescribed punishment can be imposed on the person on whose name the licence was issued.

Section 34. Disclosure.
(1) Every Certifying Authority shall disclose in the manner specified by regulations— (a) Its Digital Signature Certificate which contains the public key corresponding to the private key used by that Certifying Authority to digitally sign another Digital Signature Certificate; (b) Any certification practice statement relevant thereto; (c) Notice of the revocation or suspension of its Certifying Authority certificate, if any; and (d) Any other fact that materially and adversely affects either the reliability of a Digital Signature Certificate, which that Authority has issued, or the Authority's ability to perform its services. (2) Where in the opinion of the Certifying Authority any event has occurred or any situation has arisen which may materially and adversely affect the integrity of its computer system or the conditions subject to which a Digital Signature Certificate was granted, then, the Certifying Authority shall— (a) Use reasonable efforts to notify any person who is likely to be affected by that occurrence; or
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(b) Act in accordance with the procedure specified in its certification practice statement to deal with such event or situation.

Digital Signature Certificates (DSC) Section 35. Certifying Authority to issue Digital Signature Certificate
1. Any person applying to the Central Authority (CA) for the issue of a DSC should apply in a certain form as prescribed by the Government 2. The application is to be accompanied by a fee as prescribed by the Central Government. The fee should not exceed Rs. 25,000. Also, the fee is to be paid to the Certifying Authority. 3. The application to CA should be accompanied by a certification practice statement. When such certificate is not available, a statement as specified by regulations should be attached. 4. On receipt of such application as mentioned in sub-section(1) , the CA may, after scrutinizing the certification practice statement or other statement as mentioned in sub-section(3) or making enquiries as it deems fit, may accept or reject the application. However, the reason(s) of rejection of application should be recorded. No DSC can be issued until the CA is satisfied that: a. The applicant holds the private key corresponding to the public key listed in the DSC b. The private key held by the applicant is capable of creating a DSC c. The public listed in the DSC is capable of verifying the DSC after being affixed with the public key Also, no application can be rejected unless the applicant has been asked for the cause of reasons leading to rejection

Section 36. Representations upon issuance of DSC
A Certifying Authority while issuing Digital Signature Certificate shall certify that: a. It(the Certifying Authority) has complied with the provisions of this Act and the Regulations made thereunder b. It has published the DSC or made it available to the person relying on it and the subscriber has accepted it. c. The private key corresponding to the public key listed in the DSC is held by the subscriber d. The subscriber‘s private key and the public key constitute a functioning key pair.
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e. The information contained in the DSC is accurate f. It is unknown to any material fact , which if were included in the DSC would adversely affect the authenticity of the representations made above(i.e. from section (a) to (d) )

Section 37. Suspension of DSC
1. A Certifying Authority which has issued a DSC may suspend it on the grounds: a. It gets a request from – i. the subscriber listed in the DSC ii. any person authorized by the subscriber to act on his behalf b. If the CA is of opinion that suspension of DSC is in public interest 2. A DSC cannot be suspended for more than 15 days until the subscriber has had an opportunity to be heard in the same regard 3. On suspension of DSC , the Certifying Authority should communicate to the subscriber

Section 38. Revocation of Digital Signature Certificate
1. A Certifying Authority may revoke a DSC issued by it – a. When a subscriber or any other person authorized by him requests in this regard b. Upon the death of the subscriber c. In case the subscriber is a firm or a company, upon its dissolution 2. Subject to the restriction laid by sub-section(3) and not prejudicing sub-section(1) of this section , the Certifying Authority(CA) may revoke a DSC at any point of time , if it is of opinion that – a. A material fact presented in the DSC is false or has been concealed. b. A requirement for the issuance of the DSC was not satisfied c. The CA‘s private key or security was affected in such a way that it made the reliability if the DSC doubtful d. the subscriber has been declared insolvent(incase if a company) or dead(in case it‘s a natural person) 3. A DSC cannot be revoked until the subscriber has had a chance to be heard in the matter 4. Upon the revocation of DSC, the CA should communicate the same to the subscriber

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Section 39. Notice of suspension or revocation
1. When a DSC is suspended (under section 37) or revoked(under section 38) , the CA should publish a notice of such suspension or revocation, as the case may be, and also should enter it in the repository which is used for publication of notices 2. When there are more than one repository, the notice should be published in all the repositories

DUTIES OF THE SUBSCRIBER Section 40. Generating Key pair
When the DSC is accepted by the subscriber, he/she/it should generate the public and private key pair by applying appropriate security procedure

Section 41. Acceptance of Digital Signature Certificate
1. A subscriber would be assumed to accepted a DSC when it published or authorizes to publish a DSC – a. to one or more person b. in a repository or otherwise demonstrates his approval in some manner 2. By accepting a DSC, the subscriber certifies to all those who rely on the information contained in the DSC that – a. the subscriber holds the private key to the public key listed in the DSC. Also, it send a subtle message that it is entitled to hold the same b. he/she confirms to the authenticity of the information provided by him/her to the CA and to the information contained in the DSC c. and that the information contained in the DSC is within his/het knowledge and is true

Section 42. Control of the private key
1. The subscriber should exercise extreme care and caution so that the private key corresponding to the public key listed in the DSC held by him/her doesn‘t get into the hands of an unauthorized person (legal or natural) 2. If the private key is compromised in some way – either it been stolen or has been tampered with – the subscriber should immediately inform the Certifying Authority(CA) in a manner prescribed the regulations Till the time subscriber informs the CA that the private key has been compromised, he will be held liable for the same.
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PENALTIES , COMPENSATION AND ADJUDICATION
(Amended vide ITAA-2006/8)

Section 43. Penalty and Compensation for damage to computer, computer system, etc (Amended vide ITAA-2008)
If any person without permission of the owner or any other person who is incharge of a computer, computer system or computer network (a) accesses or secures access to such computer, computer system or computer network or computer resource (ITAA2008) (b) downloads, copies or extracts any data, computer data base or information from such computer, computer system or computer network including information or data held or stored in any removable storage medium; (c) introduces or causes to be introduced any computer contaminant or computer virus into any computer, computer system or computer network; (d) damages or causes to be damaged any computer, computer system or computer network, data, computer data base or any other programmes residing in such computer, computer system or computer network; (e) disrupts or causes disruption of any computer, computer system or computer network; (f) denies or causes the denial of access to any person authorised to access any computer, computer system or computer network by any means; (g) provides any assistance to any person to facilitate access to a computer, computer system or computer network in contravention of the provisions of this Act, rules or regulations made thereunder, (h) charges the services availed of by a person to the account of another person by tampering with or manipulating any computer, computer system, or computer network, (i) destroys, deletes or alters any information residing in a computer resource or diminishes its value or utility or affects it injuriously by any means (Inserted vide ITAA-2008) (i) Steals, conceals, destroys or alters or causes any person to steal, conceal, destroy or alter any computer source code used for a computer resource with an intention to cause damage, (Inserted vide ITAA 2008)

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He shall be liable to pay damages by way of compensation not exceeding one crore rupees to the person so affected. (change vide ITAA 2008). Explanation - for the purposes of this section (i) "Computer Contaminant" means any set of computer instructions that are designed (a) to modify, destroy, record, transmit data or programme residing within a computer, computer system or computer network; or (b) by any means to usurp the normal operation of the computer, computer system, or computer network; (ii) "Computer Database" means a representation of information, knowledge, facts, concepts or instructions in text, image, audio, video that are being prepared or have been prepared in a formalised manner or have been produced by a computer, computer system or computer network and are intended for use in a computer, computer system or computer network; (iii) "Computer Virus" means any computer instruction, information, data or programme that destroys, damages, degrades or adversely affects the performance of a computer resource or attaches itself to another computer resource and operates when a programme, data or instruction is executed or some other event takes place in that computer resource; (iv) "Damage" means to destroy, alter, delete, add, modify or re-arrange any computer resource by any means. (v) "Computer Source code" means the listing of programmes, computer commands, design and layout and programme analysis of computer resource in any form (Inserted vide ITAA 2008).

Section 43(A) Compensation for failure to protect data (Inserted vide ITAA 2006).
Where a body corporate, possessing, dealing or handling any sensitive personal data or information in a computer resource which it owns, controls or operates, is negligent in implementing and maintaining reasonable security practices and procedures and thereby causes wrongful loss or wrongful gain to any person, such body corporate shall be liable to pay damages by way of compensation, not exceeding five crore rupees, to the person so affected. (Change vide ITAA 2008) Explanation: For the purposes of this section (i) "body corporate" means any company and includes a firm, sole proprietorship or other association of individuals engaged in commercial or professional activities

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(ii) "reasonable security practices and procedures" means security practices and procedures designed to protect such information from unauthorised access, damage, use, modification, disclosure or impairment, as may be specified in an agreement between the parties or as may be specified in any law for the time being in force and in the absence of such agreement or any law, such reasonable security practices and procedures, as may be prescribed by the Central Government in consultation with such professional bodies or associations as it may deem fit. (iii) "sensitive personal data or information" means such personal information as may be prescribed by the Central Government in consultation with such professional bodies or associations as it may deem fit.

Section 44. Penalty for failure to furnish information, return, etc.
If any person who is required under this Act or any rules or regulations made thereunder to (a) furnish any document, return or report to the Controller or the Certifying Authority, fails to furnish the same, he shall be liable to a penalty not exceeding one lakh and fifty thousand rupees for each such failure; file any return or furnish any information, books or other documents within the time specified therefor in the regulations, fails to file return or furnish the same within the time specified therefore in the regulations, he shall be liable to a penalty not exceeding five thousand rupees for every day during which such failure continues: maintain books of account or records, fails to maintain the same, he shall be liable to a penalty not exceeding ten thousand rupees for every day during which the failure continues. Penalty for sending obscene emails (a). Sending obscene emails are punishable under Section 67 of the IT Act. (b). First conviction imprisonment for a term of five years and a fine upto 1 lakh rupees. (c). If convicted a second time imprisonment may extend upto 10 yrs and fine upto 2 lakh rupees.

(b)

(c)

Section 45. Residuary Penalty.
Whoever contravenes any rules or regulations made under this Act, for the contravention of which no penalty has been separately provided, shall be liable to pay a compensation not exceeding twenty-five thousand rupees to the person affected by such contravention or a penalty not exceeding twenty-five thousand rupees.

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Section 46. Power to Adjudicate
(1). For the purpose of adjudging under this Chapter whether any person has committed a contravention of any of the provisions of this Act or of any rule, regulation, direction or order made thereunder which renders him liable to pay penalty or compensation, the Central Government shall, subject to the provisions of sub-section(3), appoint any officer not below the rank of a Director to the Government of India or an equivalent officer of a State Government to be an adjudicating officer for holding an inquiry in the manner prescribed by the Central Government. ( amended vide ITAA 2008) (1A). The adjudicating officer appointed under sub-section (1) shall exercise jurisdiction to adjudicate matters in which the claim for injury or damage does not exceed rupees five crore Provided that the jurisdiction in respect of claim for injury or damage exceeding rupees five croore shall vest with the competent court. (Inserted Vide ITAA 2008). (2). The adjudicating officer shall, after giving the person referred to in sub-section (1) a reasonable opportunity for making representation in the matter and if, on such inquiry, he is satisfied that the person has committed the contravention, he may impose such penalty as he thinks fit in accordance with the provisions of that section. (3). No person shall be appointed as an adjudicating officer unless he possesses such experience in the field of Information Technology and Legal or Judicial experience as may be prescribed by the Central Government. (4). Where more than one adjudicating officers are appointed, the Central Government shall specify by order the matters and places with respect to which such officers shall exercise their jurisdiction. (5). Every adjudicating officer shall have the powers of a civil court which are conferred on the Cyber Appellate Tribunal under sub-section (2) of section 58, and (a) all proceedings before it shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code; (b) shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973. (c) shall be deemed to be a Civil Court for purposes of order XXI of the Civil Procedure Code, 1908 (Inserted vide ITAA 2008)

Section 47. Factors to be taken into account by the adjudicating officer
While adjudging the quantum of compensation under this Chapter the adjudicating officer shall have due regard to the following factors, namely 34

(a) the amount of gain of unfair advantage, wherever quantifiable, made as a result of the default; (b) the amount of loss caused to any person as a result of the default; (c) the repetitive nature of the default.

The Cyber Regulation Appellate Tribunal Section 48:
The Cyber Regulation Appellate Tribunal was established under section 48 of the IT Act. As per this section: 1) The Central Government shall, by notification, establish one or more appellate tribunals to be known as the Cyber Regulations Appellate Tribunal. 2) The Central Government also specifies the matters and places to which the Cyber Appellate Tribunal may exercise jurisdiction, in the notification referred to in subsection (1). The Cyber Regulation Appellate Tribunal started functioning in October 2006 and is currently presided over by Honorable Mr. Justice Rajesh Tandon. The headquarters of the Tribunal is located in New Delhi.

Section 49:
The Cyber Regulation Appellate Tribunal shall consist of one person only to be appointed, by notification, by the central government. The person so appointed is referred to as the Presiding Officer of the Appellate Tribunal. There can be only one presiding officer and he or she can be assisted by a number of members, which is also decided by the central government.

Section 50: Qualifications for appointment as Presiding Officer of the Cyber Regulation Appellate Tribunal
A person is not eligible to hold the office of the presiding officer of the Cyber Appellate Tribunal unless he or she: a) is, or has been, or is qualified to be, a judge of a high court b) is or has been a member of the Indian Legal Service and is holding or has held a post in grade 1 of that service for at least three years. Anyone who does not satisfy any one of the above mentioned criterion cannot be eligible to be the Presiding officer of the Cyber Regulation Appellate Tribunal.
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Section 51: Term of Office
The presiding officer of the Cyber Regulation Appellate Tribunal can hold office for a term of five years from the date on which he enters upon his office or until he attains the age of sixty five years, whichever is earlier. As an example, if the presiding officer is appointed on, lets say 10th March, 2008, he may hold office until 9th March, 2013. If at the time of appointment he is 62 years old, then the presiding officer will have to retire as soon as he attains the age of 65 which will be in 2011.

Section 52: Salary, Allowances and other terms of conditions of service of the Presiding Officer
The salaries and allowance that are payable to the presiding officer and other terms of service including pension, gratuity and other retirement benefits shall be prescribed by the central government. The terms of service, salary and allowances once laid shall not be varied such that they disadvantage the Presiding Officer after his appointment.

Section 53: Filling up of Vacancies
If the office of the Presiding Officer of the Cyber Regulation Appellate Tribunal is vacant for reasons other than temporary absence, the Central Government can appoint another person in accordance with the provisions of the Act to fill the vacancy. The proceedings may be continued before the Cyber Regulation Appellate Tribunal from the stage where the vacancy is filled.

Section 54: Resignation and Removal
This section helps identify the circumstances under which the Presiding Officer may be removed from office or may resign. 1) The Presiding Officer of the Appellate may resign from his office by giving a notice to under his hand addressed to the central government. After the resignation, the Presiding Officer will have to hold his office until the expiry of three months from the date of receipt of notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest. The Presiding Officer under certain circumstances shall be able to relinquish his office sooner if permitted by the central government. 2) The Presiding Officer of the Cyber Regulation Appellate Tribunal cannot be removed from his office except by an order of the central government on the ground of proved misbehavior or incapacity. In such a scenario, an inquiry needs to be made by the judge of the Supreme Court and the Presiding Officer must be informed about the charges against him. He must also be given an opportunity of being heard with respect to these charges.
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3) The central government regulates the procedure for the investigation of misbehavior or incapacity of the Presiding Officer.

Section 55: Orders constituting Appellate Tribunal to be final
This section states that no order of the central government appointing any person as the Presiding Officer of a Cyber Appellate Tribunal shall be called in question in any manner and no act or proceeding before a Cyber Appellate Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution of a Cyber Appellate Tribunal.

Section 56: Staff of the Appellate Tribunal
Under this section, the central government decides who can be a member of the staff of the Tribunal apart from the Presiding Officer. The following are the three tasks that may be performed: 1) The Central Government provides the appellate tribunal with officers and employees as it may deem fit. 2) The officers and the employees discharge their functions under the general superintendence of the Presiding Officer. 3) The salaries, allowances and other terms of service of the officers and employees of the Appellate are as prescribed by the Central Government.

Section 57: Appeal to the Appellate Tribunal
This section lays down the framework for who can appeal to the Appellate Tribunal 1) Any person who is aggrieved by an order made by the controller or the adjudicating officer under this Act can appeal to the Appellate Tribunal that has jurisdiction in the matter 2) If the order made by the Adjudicating Officer was with the consent of both parties, an appeal against such an order cannot be made to the Appellate Tribunal

3) An appeal shall be made within forty five days from the date on which a copy of the order made by the controller or the adjudicating officer is received by the person aggrieved. The appellate tribunal may entertain an appeal after the expiry of forty five days if there is sufficient cause for not filing the appeal. 4) After receiving an appeal and giving both parties an opportunity of being heard, the Appellate Tribunal may pass orders that confirm, modify or set aside the order appealed against.

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5) The Appellate Tribunal must send copies of all orders to both the parties to the appeal and to the controller or adjudicating officer. 6) The Appellate Tribunal must deal with all appeals as expeditiously as possible and shall try to dispose off the appeal within six months from the date of receipt.

Section 58: Procedure and Powers to the Cyber Appellate Tribunal
1) The Cyber Appellate Tribunal is not bound by the procedures of the Code of Civil procedure but is guided by the principles of natural justice. The Appellate Tribunal has the power to regulate its own procedure including the place at which it shall have its sittings, subject to other provisions of this Act. 2) The Cyber Appellate Tribunal has, for the purposes of this Act, the same powers as vested to a civil court under the code of civil procedure, while trying a suit in the following matters: a. Summoning and enforcing the attendance of any person and examine him on oath b. Requiring the discovery and production of documents or other electronic records c. Receiving evidence on affidavits d. issuing commissions for the examination of witnesses or document e. reviewing its decisions f. dismissing an application for default or deciding it ex pane g. any other matter prescribed 3) Any proceeding before the Appellate Tribunal is deemed judicial and the Appellate Tribunal is deemed to be a civil court for purposes of section 195 of Indian Penal code.

Section 59: Right to Legal Representation
This section states that any person may either be present for the hearing or may also appoint one or more legal practitioners or any of its officers to present his case before the Cyber Appellate Tribunal.

Section 60: Limitation
Under this section the provisions of the Limitation Act may apply to an appeal made to the Cyber Appellate Tribunal.

Section 61: Civil Court not to have jurisdiction
This section states that no court can have jurisdiction on the suits or proceedings which an adjudicating officer appointed under this Act or the Cyber Appellate Tribunal constituted under this Act is empowered by or under this Act to determine. No court shall grant any injunction in such matters.
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Section 62: Appeal to the High court
This section lets any person aggrieved by any decision or order of the Cyber Appellate Tribunal to file an appeal to the High Court, within sixty days from the date of communication of the decision or order of the Cyber Appellate Tribunal to him. The High Court may allow a person to file an appeal after the expiry of sixty days if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period. Another time frame not exceeding sixty days is given to the appellant.

Section 63: Compounding of Contraventions
Under this section: 1) Any contravention shall be compounded by the controller or any other officer as may be specially authorized by him or by the adjudicating officer. The sum shall however not exceed the maximum amount of penalty which may be imposed by this Act 2) Sub-Section (1) shall not apply to a person who commits the same or similar contravention within a period of three years from the date on which the first contravention, committed by him, was compounded. For the purposes of this subsection, any second or subsequent contravention committed after the expiry of a period of three years from the date on which the contravention was previously compounded shall be deemed to be a first contravention.

3) In case of compounding of contraventions no further proceeding shall be taken against the guilty person

Section 64: Recovery of Penalty
If any penalty imposed under this Act is not paid, it shall be recovered as an arrear of land revenue. In the meantime, the license or the Digital Signature Certificate of the party may be suspended till the time the penalty is not paid.

Offences
Section 65: Tampering with computer Source Documents
Whoever knowingly or intentionally conceals, destroys or alters or intentionally or knowingly causes another to conceal, destroy or alter any computer source code used for a computer, computer programme, computer system or computer network, when the computer source code is required to be kept or maintained by law for the time being in force, shall be punishable with imprisonment up to three years, or with fine which may extend up to two lakh rupees, or with both.
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Explanation: For the purposes of this section, "Computer Source Code" means the listing of programmes, Computer Commands, Design and layout and programme analysis of computer resource in any form. Description: The section mentions about a breach of law if anyone tries to or causes another to alter, destroy or conceal a computer source code which is required to be kept by law in force, will attract penalty upto two lakh rupees or imprisonment upto three years or both

Section 66: Computer related offences
If any person, dishonestly, or fraudulently, does any act referred to in section 43, he shall be punishable with imprisonment for a term which may extend to two three years or with fine which may extend to five lakh rupees or with both. Explanation: For the purpose of this section,a) the word "dishonestly" shall have the meaning assigned to it in section 24 of the Indian Penal Code; b) the word "fraudulently" shall have the meaning assigned to it in section 25 of the Indian Penal Code.

Section 66 A: Punishment for sending offensive messages through communication service, etc. ( Introduced vide ITAA 2006/8)
Any person who sends, by means of a computer resource or a communication device,a) any information that is grossly offensive or has menacing character; or b) any information which he knows to be false, but for the purpose of causing annoyance, inconvenience, danger, obstruction, insult, injury, criminal intimidation, enmity, hatred, or ill will, persistently by making use of such computer resource or a communication device, c) any electronic mail or electronic mail message for the purpose of causing annoyance or inconvenience or to deceive or to mislead the addressee or recipient about the origin of such messages (Inserted vide ITAA 2008) shall be punishable with imprisonment for a term which may extend to two three years and with fine.
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Explanation: For the purposes of this section, terms "Electronic mail" and "Electronic Mail Message" means a message or information created or transmitted or received on a computer, computer system, computer resource or communication device including attachments in text, image, audio, video and any other electronic record, which may be transmitted with the message.

Section 66 B: Punishment for dishonestly receiving stolen computer resource or communication device (Inserted Vide ITA 2008)
Whoever dishonestly receives or retains any stolen computer resource or communication device knowing or having reason to believe the same to be stolen computer resource or communication device, shall be punished with imprisonment of either description for a term which may extend to three years or with fine which may extend to rupees one lakh or with both.

Section 66C: Punishment for identity theft. (Inserted Vide ITA 2008)
Whoever, fraudulently or dishonestly make use of the electronic signature, password or any other unique identification feature of any other person, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to rupees one lakh.

Section 66D: Punishment for cheating by personation by using computer resource (Inserted Vide ITA 2008)
Whoever, by means of any communication device or computer resource cheats by personation, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to one lakh rupees.

Section 66E: Punishment for violation of privacy.(Inserted Vide ITA 2008)
Whoever, intentionally or knowingly captures, publishes or transmits the image of a private area of any person without his or her consent, under circumstances violating the privacy of that person, shall be punished with imprisonment which may extend to three years or with fine not exceeding two lakh rupees, or with both Explanation.- For the purposes of this section-(a) ?transmit? means to electronically send a visual image with the intent that it be viewed by a person or persons;

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(b) ?capture?, with respect to an image, means to videotape, photograph, film or record by any means; (c) ?private area? means the naked or undergarment clad genitals, pubic area, buttocks or female breast; (d) ?publishes? means reproduction in the printed or electronic form and making it available for public; (e) ?under circumstances violating privacy? means circumstances in which a person can have a reasonable expectation that-(i) he or she could disrobe in privacy, without being concerned that an image of his private area was being captured; or (ii) any part of his or her private area would not be visible to the public, regardless of whether that person is in a public or private place.

Section 66F: Punishment for cyber terrorism
(1) Whoever,(A) with intent to threaten the unity, integrity, security or sovereignty of India or to strike terror in the people or any section of the people by – (i) denying or cause the denial of access to any person authorised to access computer resource; or (ii) attempting to penetrate or access a computer resource without authorisation or exceeding authorised access; or (iii) introducing or causing to introduce any Computer Contaminant. and by means of such conduct causes or is likely to cause death or injuries to persons or damage to or destruction of property or disrupts or knowing that it is likely to cause damage or disruption of supplies or services essential to the life of the community or adversely affect the critical information infrastructure specified under section 70, or (B) knowingly or intentionally penetrates or accesses a computer resource without authorisation or exceeding authorised access, and by means of such conduct obtains access to information, data or computer database that is restricted for reasons of the security of the State or foreign relations; or any restricted information, data or computer database, with reasons to believe that such information, data or computer database so obtained may be used to cause or likely to cause injury to the interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality, or in relation to contempt of
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court, defamation or incitement to an offence, or to the advantage of any foreign nation, group of individuals or otherwise, commits the offence of cyber terrorism. (2) Whoever commits or conspires to commit cyber terrorism shall be punishable with imprisonment which may extend to imprisonment for life‘. Description: The section emphasizes on dishonestly receiving a computer source, identity theft, hacking, violation of privacy, cyber terrorism,

Section 67: Punishment for publishing or transmitting obscene material in electronic form
Whoever publishes or transmits or causes to be published in the electronic form, any material which is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely, having regard to all relevant circumstances, to read, see or hear the matter contained or embodied in it, shall be punished on first conviction with imprisonment of either description for a term which may extend to two three years and with fine which may extend to five lakh rupees and in the event of a second or subsequent conviction with imprisonment of either description for a term which may extend to five years and also with fine which may extend to ten lakh rupees.

Section 67 A: Punishment for publishing or transmitting of material containing sexually explicit act, etc. in electronic form (Inserted vide ITAA 2006)
Whoever publishes or transmits or causes to be published or transmitted in the electronic form any material which contains sexually explicit act or conduct shall be punished on first conviction with imprisonment of either description for a term which may extend to five years and with fine which may extend to ten lakh rupees and in the event of second or subsequent conviction with imprisonment of either description for a term which may extend to seven years and also with fine which may extend to ten lakh rupees. Exception: This section and section 67 does not extend to any book, pamphlet, paper, writing, drawing, painting, representation or figure in electronic form(i) the publication of which is proved to be justified as being for the public good on the ground that such book, pamphlet, paper, writing, drawing, painting, representation or figure is in the interest of science,literature,art,or learning or other objects of general concern; or (ii) which is kept or used bona fide for religious purposes.

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Section 67 B: Punishment for publishing or transmitting of material depicting children in sexually explicit act, etc. in electronic form.
Whoever,(a) publishes or transmits or causes to be published or transmitted material in any electronic form which depicts children engaged in sexually explicit act or conduct or (b) creates text or digital images, collects, seeks, browses, downloads, advertises, promotes, exchanges or distributes material in any electronic form depicting children in obscene or indecent or sexually explicit manner or (c) cultivates, entices or induces children to online relationship with one or more children for and on sexually explicit act or in a manner that may offend a reasonable adult on the computer resource or (d) facilitates abusing children online or (e) records in any electronic form own abuse or that of others pertaining to sexually explicit act with children, shall be punished on first conviction with imprisonment of either description for a term which may extend to five years and with a fine which may extend to ten lakh rupees and in the event of second or subsequent conviction with imprisonment of either description for a term which may extend to seven years and also with fine which may extend to ten lakh rupees: Provided that the provisions of section 67, section 67A and this section does not extend to any book, pamphlet, paper, writing, drawing, painting, representation or figure in electronic form(i) The publication of which is proved to be justified as being for the public good on the ground that such book, pamphlet, paper writing, drawing, painting, representation or figure is in the interest of science, literature, art or learning or other objects of general concern; or (ii) which is kept or used for bonafide heritage or religious purposes Explanation: For the purposes of this section, "children" means a person who has not completed the age of 18 years.

Section 67 C: Preservation and Retention of information by intermediaries
(1) Intermediary shall preserve and retain such information as may be specified for such duration and in such manner and format as the Central Government may prescribe.

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(2) Any intermediary who intentionally or knowingly contravenes the provisions of sub section (1) shall be punished with an imprisonment for a term which may extend to three years and shall also be liable to fine. Description: The Act stresses on the criminal action attracted on publishing obscene information in electronic form.

Section 68: Power of Controller to give directions (Amended Vide ITAA 2006)
(1) The Controller may, by order, direct a Certifying Authority or any employee of such Authority to take such measures or cease carrying on such activities as specified in the order if those are necessary to ensure compliance with the provisions of this Act, rules or any regulations made thereunder. (2)Any person who intentionally or knowingly (Inserted vide ITAA 2006) fails to comply with any order under sub-section (1) shall be guilty of an offence and shall be liable on conviction to imprisonment for a term not exceeding two years or to a fine not exceeding one lakh rupees or to both. Description: The section talks about the powers that the Controller has in order to have compliance with the IT Act.

Section 69: Powers to issue directions for interception or monitoring or decryption of any information through any computer resource (Substituted Vide ITAA 2006)
(1) Where the central Government or a State Government or any of its officer specially authorised by the Central Government or the State Government, as the case may be, in this behalf may, if is satisfied that it is necessary or expedient to do in the interest of the sovereignty or integrity of India, defense of India, security of the State, friendly relations with foreign States or public order or for preventing incitement to the commission of any cognizable offence relating to above or for investigation of any offence, it may, subject to the provisions of subsection (2), for reasons to be recorded in writing, by order, direct any agency of the appropriate Government to intercept, monitor or decrypt or cause to be intercepted or monitored or decrypted any information transmitted received or stored through any computer resource. (2) The Procedure and safeguards subject to which such interception or monitoring or decryption may be carried out, shall be such as may be prescribed

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(3)The subscriber or intermediary or any person in charge of the computer resource shall, when called upon by any agency which has been directed under sub section (1), extend all facilities and technical assistance to (a) provide access to or secure access to the computer resource generating, transmitting, receiving or storing such information; or (b) intercept or monitor or decrypt the information, as the case may be; or (c) provide information stored in computer resource. (4) The subscriber or intermediary or any person who fails to assist the agency referred to in sub-section (3) shall be punished with an imprisonment for a term which may extend to seven years and shall also be liable to fine.

Section 69 A: Power to issue directions for blocking for public access of any information through any computer resource
(1) Where the Central Government or any of its officer specially authorised by it in this behalf is satisfied that it is necessary or expedient so to do in the interest of sovereignty and integrity of India, defense of India, security of the State, friendly relations with foreign states or public order or for preventing incitement to the commission of any cognizable offence relating to above, it may subject to the provisions of sub-sections (2) for reasons to be recorded in writing, by order direct any agency of the Government or intermediary to block access by the public or cause to be blocked for access by public any information generated, transmitted, received, stored or hosted in any computer resource. (2) The procedure and safeguards subject to which such blocking for access by the public may be carried out shall be such as may be prescribed. (3) The intermediary who fails to comply with the direction issued under sub-section (1) shall be punished with an imprisonment for a term which may extend to seven years and also be liable to fine.

Section 69B: Power to authorize to monitor and collect traffic data or information through any computer resource for Cyber Security
(1) The Central Government may, to enhance Cyber Security and for identification, analysis and prevention of any intrusion or spread of computer contaminant in the country, by notification in the official Gazette, authorize any agency of the Government to monitor and collect traffic data or information generated, transmitted, received or stored in any computer resource.
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(2) The Intermediary or any person in-charge of the Computer resource shall when called upon by the agency which has been authorised under sub-section (1), provide technical assistance and extend all facilities to such agency to enable online access or to secure and provide online access to the computer resource generating , transmitting, receiving or storing such traffic data or information. (3) The procedure and safeguards for monitoring and collecting traffic data or information, shall be such as may be prescribed. (4) Any intermediary who intentionally or knowingly contravenes the provisions of sub-section (2) shall be punished with an imprisonment for a term which may extend to three years and shall also be liable to fine. Explanation: For the purposes of this section, (i) "Computer Contaminant" shall have the meaning assigned to it in section 43 (ii) "traffic data" means any data identifying or purporting to identify any person, computer system or computer network or location to or from which the communication is or may be transmitted and includes communications origin, destination, route, time, date, size, duration or type of underlying service or any other information. Description: The section describes the powers vested in the Controller if at times when the information needs to be decrypted in the name of the national interest.

Section 70 A: National nodal agency. (Inserted vide ITAA 2006/8)
(1) The Central Government may, by notification published in the official Gazette, designate any organization of the Government as the national nodal agency in respect of Critical Information Infrastructure Protection. (2)The national nodal agency designated under sub-section (1) shall be responsible for all measures including Research and Development relating to protection of Critical Information Infrastructure. (3) The manner of performing functions and duties of the agency referred to in sub-section (1) shall be such as may be prescribed.

Section 70 B: Indian Computer Emergency Response Team to serve as national agency for incident response
(1) The Central Government shall, by notification in the Official Gazette, appoint an agency of the government to be called the Indian Computer Emergency Response Team.
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(2) The Central Government shall provide the agency referred to in sub-section (1) with a Director General and such other officers and employees as may be prescribed. (3) The salary and allowances and terms and conditions of the Director General and other officers and employees shall be such as may be prescribed. (4) The Indian Computer Emergency Response Team shall serve as the national agency for performing the following functions in the area of Cyber Security,(a) collection, analysis and dissemination of information on cyber incidents (b) forecast and alerts of cyber security incidents (c) emergency measures for handling cyber security incidents (d) Coordination of cyber incidents response activities (e) issue guidelines, advisories, vulnerability notes and white papers relating to information security practices, procedures, prevention, response and reporting of cyber incidents (f) such other functions relating to cyber security as may be prescribed (5) The manner of performing functions and duties of the agency referred to in sub-section (1) shall be such as may be prescribed. (6) For carrying out the provisions of sub-section (4), the agency referred to in sub-section (1) may call for information and give direction to the service providers, intermediaries, data centers, body corporate and any other person (7) Any service provider, intermediaries, data centers, body corporate or person who fails to provide the information called for or comply with the direction under sub-section (6) , shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to one lakh rupees or with both. (8) No Court shall take cognizance of any offence under this section, except on a complaint made by an officer authorised in this behalf by the agency referred to in sub-section (1) Description: The section talks about the national nodal agency and the powers vested in it.

Section 71: Penalty for misrepresentation
Whoever makes any misrepresentation to, or suppresses any material fact from, the Controller or the Certifying Authority for obtaining any license or Electronic Signature Certificate, as the case may be, shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both.
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Description: The section talks about the misrepresentation of facts to obtain electronic signature.

Section 72: Breach of confidentiality and privacy
Save as otherwise provided in this Act or any other law for the time being in force, any person who, in pursuant of any of the powers conferred under this Act, rules or regulations made thereunder, has secured access to any electronic record, book, register, correspondence, information, document or other material without the consent of the person concerned discloses such electronic record, book, register, correspondence, information, document or other material to any other person shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both.

Section 72 A: Punishment for Disclosure of information in breach of lawful contract (Inserted vide ITAA-2006)
Save as otherwise provided in this Act or any other law for the time being in force, any person including an intermediary who, while providing services under the terms of lawful contract, has secured access to any material containing personal information about another person, with the intent to cause or knowing that he is likely to cause wrongful loss or wrongful gain discloses, without the consent of the person concerned, or in breach of a lawful contract, such material to any other person shall be punished with imprisonment for a term which may extend to two three years, or with a fine which may extend to five lakh rupees, or with both. Description: The section mentions about the penalty imposed on breach of privacy and confidentiality.

Section 73: Penalty for publishing electronic Signature Certificate false in certain particulars
(1) No person shall publish a Electronic Signature Certificate or otherwise make it available to any other person with the knowledge that (a) the Certifying Authority listed in the certificate has not issued it; or (b) the subscriber listed in the certificate has not accepted it; or (c) the certificate has been revoked or suspended, unless such publication is for the purpose of verifying a digital signature created prior to such suspension or revocation

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(2) Any person who contravenes the provisions of sub-section (1) shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both. Description: The section emphasizes on the penalty imposed on publication of false electronic signature.

Section 74: Publication for fraudulent purpose
Whoever knowingly creates, publishes or otherwise makes available a Electronic Signature Certificate for any fraudulent or unlawful purpose shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both Description: the section talks about the criminal liability in case of a Electronic signature fraud.

Section 75: Act to apply for offence or contraventions committed outside India
(1) Subject to the provisions of sub-section (2), the provisions of this Act shall apply also to any offence or contravention committed outside India by any person irrespective of his nationality. (2) For the purposes of sub-section (1), this Act shall apply to an offence or contravention committed outside India by any person if the act or conduct constituting the offence or contravention involves a computer, computer system or computer network located in India. Description: the section describes about the offences committed outside India.

Section 76: Confiscation
Any computer, computer system, floppies, compact disks, tape drives or any other accessories related thereto, in respect of which any provision of this Act, rules, orders or regulations made thereunder has been or is being contravened, shall be liable to confiscation: Provided that where it is established to the satisfaction of the court adjudicating the confiscation that the person in whose possession, power or control of any such computer, computer system, floppies, compact disks, tape drives or any other accessories relating thereto is found is not responsible for the contravention of the provisions of this Act, rules, orders or regulations made thereunder, the court may, instead of making an order for confiscation of such computer, computer system,
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floppies, compact disks, tape drives or any other accessories related thereto, make such other order authorised by this Act against the person contravening of the provisions of this Act, rules, orders or regulations made thereunder as it may think fit. Description: the section talks about the various hardwares that will be confiscated when charged with IT act violation.

Section 77: Compensation, penalties or confiscation not to interfere with other punishment. (Substituted Vide ITAA-2006)
No compensation awarded, penalty imposed or confiscation made under this Act shall prevent the award of compensation or imposition of any other penalty or punishment under any other law for the time being in force.

Section 77 A: Compounding of Offences
(1) A Court of competent jurisdiction may compound offences other than offences for which the punishment for life or imprisonment for a term exceeding three years has been provided under this Act. Provided that the Court shall not compound such offence where the accused is by reason of his previous conviction, liable to either enhanced punishment or to a punishment of a different kind. Provided further that the Court shall not compound any offence where such offence affects the socio-economic conditions of the country or has been committed against a child below the age of 18 years or a woman. (2) The person accused of an offence under this act may file an application for compounding in the court in which offence is pending for trial and the provisions of section 265 B and 265 C of Code of Criminal Procedures, 1973 shall apply.

Section 77 B: Offences with three years imprisonment to be cognizable
(1) Notwithstanding anything contained in Criminal Procedure Code 1973, the offence punishable with imprisonment of three years and above shall be cognizable and the offence punishable with imprisonment of three years shall be bailable. Description: the section mentions about the penalties being imposed via IT act to not to be interfered with other punishments.

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Section 78: Power to investigate offences (Amended Vide ITAA 2006)
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, a police officer not below the rank of Inspector shall investigate any cognizable offence under this Act. (Amended Vide ITAA 2006/8) (2) When information is given to an officer in charge of a police station of the commission within the limits of such station of a non-cognizable offence under this act, he shall cause to be entered the substance of the information in a book to be kept by such officer in such form as the State Government may prescribe in this behalf. (Inserted vide ITAA-2006) (3) Any Police officer receiving such information may exercise the same powers in respect of investigation (except the power to arrest without warrant) as an officer in charge of the police station may exercise in a cognizable case under section 156 of the Code of Criminal Procedure, 1973. (Inserted vide ITAA-2006) Description: The section describes the powers vested in the police officer.

Network service providers not to be liable in certain cases
Section 79: Exemption from liability of intermediary in certain cases
(1) Notwithstanding anything contained in any law for the time being in force but subject to the provisions of sub-sections (2) and (3), an intermediary shall not be liable for any third party information, data, or communication link made hosted by him. (corrected vide ITAA 2008) (2) The provisions of sub-section (1) shall apply if(a) the function of the intermediary is limited to providing access to a communication system over which information made available by third parties is transmitted or temporarily stored; or (b) the intermediary does not(i) initiate the transmission, (ii) select the receiver of the transmission, and (iii) select or modify the information contained in the transmission (c) the intermediary observes due diligence while discharging his duties under this Act and also observes such other guidelines as the Central Government may prescribe in this behalf (Inserted Vide ITAA 2008)
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(3) The provisions of sub-section (1) shall not apply if(a) the intermediary has conspired or abetted or aided or induced whether by threats or promise or otherwise in the commission of the unlawful act (ITAA 2008) (b) upon receiving actual knowledge, or on being notified by the appropriate Government or its agency that any information, data or communication link residing in or connected to a computer resource controlled by the intermediary is being used to commit the unlawful act, the intermediary fails to expeditiously remove or disable access to that material on that resource without vitiating the evidence in any manner. Explanation:- For the purpose of this section, the expression "third party information" means any information dealt with by an intermediary in his capacity as an intermediary. Description: The section talks about the criminal liability on the Network service providers in case any IT Act section applies.

MISCELLANEOUS Section 80. Power of police officer and other officers to enter, search, etc.
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any police officer, not below the rank of a Deputy Superintendent of Police, or any other officer of the Central Government or a State Government authorised by the Central Government in this behalf may enter any public place and search and arrest without warrant any person found therein who is reasonably suspected or having committed or of committing or of being about to commit any offence under this Act. Explanation.—For the purposes of this sub-section, the expression "public place" includes any public conveyance, any hotel, any shop or any other place intended for use by, or accessible to the public. (2) Where any person is arrested under sub-section (1) by an officer other than a police officer, such officer shall, without unnecessary delay, take or send the person arrested before a magistrate having jurisdiction in the case or before the officer-in-charge of a police station. (3) The provisions of the Code of Criminal Procedure, 1973 shall, subject to the provisions of this section, apply, so far as may be, in relation to any entry, search or arrest, made under this section.

Section 81. Act to have overriding effect.
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The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

Section 82. Controller, Deputy Controller and Assistant Controllers to be public servants.
The Presiding Officer and other officers and employees of a Cyber Appellate Tribunal, the Controller, the Deputy Controller and the Assistant Controllers shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

Section 83. Power to give directions.
The Central Government may give directions to any State Government as to the carrying into execution in the State of any of the provisions of this Act or of any rule, regulation or order made thereunder.

Section 84. Protection of action taken in good faith.
No suit, prosecution or other legal proceeding shall lie against the Central Government, the State Government, the Controller or any person acting on behalf of him, the Presiding Officer, adjudicating officers and the staff of the Cyber Appellate Tribunal for anything which is in good faith done or intended to be done in pursuance of this Act or any rule, regulation or order made thereunder.

Section 85. Offences by companies.
(1) Where a person committing a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to, the company for the conduct of business of the company as well as the company, shall be guilty of the contravention and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention. (2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or
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other officer shall also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly. Explanation — for the purposes of this section,— (i) "Company" means any, body corporate, and includes a firm or other association of individuals; and (ii) "Director", in relation to a firm, means a partner in the firm.

Section 86. Removal of difficulties.
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

Section 87. Power of Central Government to make rules.
(1) The Central Government may, by notification in the Official Gazette and in the Electronic Gazette make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following mailers, namely:— (a) The manner in which any information or matter may be authenticated by means of digital signature under section 5; (b) The electronic form in which filings, issue, grant or payment shall be effected under sub-section (1) of section 6; (c) The manner and format in which electronic records shall be filed, or issued and the method of .payment under sub-section (2) of section 6; (d) The matters relating to the type of digital signature, manner and format in which it may be affixed under section 10; (e) The security procedure for the purpose of creating secure electronic record and secure digital signature under section 16; (f) The qualifications, experience and terms and conditions of service of Controller, Deputy Controllers and Assistant Controllers under section 17; (g) Other standards to be observed by the Controller under clause (b) of subsection (2) of section 20;
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(h) The requirements which an applicant must fulfil under sub-section (2) of section 21; (i) The period of validity of licence granted under clause (a) of sub-section (3) of section 21; (j) The form in which an application for licence may be made under sub-section (1) of section 22; (k) The amount of fees payable under clause (c) of sub-section (2) of section 22; (l) Such other documents which shall accompany an application for licence under clause (a) of sub-section (2) of section 22; (m) The form and the fee for renewal of a licence and the fee payable thereof under section 23; The form in which application for issue of a Digital Signature Certificate may be made under sub-section (1) of section 35; (o) The fee to be paid to the Certifying Authority for issue of a Digital Signature Certificate under sub-section (2) of section 35; (p) The manner in which the adjudicating officer shall hold inquiry under subsection (1) of section 46; (q) The qualification and experience which the adjudicating officer shall possess under sub-section (3) of section 46; (r) The salary, allowances and the other terms and conditions of service of the Presiding Officer under section 52; (s) The procedure for investigation of misbehaviour or incapacity of the Presiding Officer under sub-section (3) of section 54; (t) The salary and allowances and other conditions of service of other officers and employees under sub-section (3} of section 56; (u) The form in which appeal may be filed and the fee thereof under sub -section (3) of section 57; (v) Any other power of a civil court required to be prescribed under clause (g) of subsection (2) of section 58; and (w) Any other matter which is required to be, or may be, prescribed. (3) Every notification made by the Central Government under clause (f) of subsection (4) of Section 1 and every rule made by it shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or the rule or both Houses agree that the notification or the rule should not be made, the notification or the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification or rule.
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Section 88. Constitution of Advisory Committee.
(1) The Central Government shall, as soon as may be after the commencement of this Act, constitute a Committee called the Cyber Regulations Advisory Committee. (2) The Cyber Regulations Advisory Committee shall consist of a Chairperson and such number of other official and non-official members representing the interests principally affected or having special knowledge of the subject-matter as the Central Government may deem fit. (3) The Cyber Regulations Advisory Committee shall advise— (a) The Central Government either generally as regards any rules or for any other purpose connected with this Act; (b) The Controller in framing the regulations under this Act. (4) There shall be paid to the non-official members of such Committee such travelling and other allowances as the Central Government may fix.

Section 89. Power of Controller to make regulations.
(1) The Controller may, after consultation with the Cyber Regulations Advisory Committee and with the previous approval of the Central Government, by notification in the Official Gazette, make regulations consistent with this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely: — (a) The particulars relating to maintenance of data-base containing the disclosure record of every Certifying Authority under clause (m) of section 18; (b) The conditions and restrictions subject to which the Controller may recognise any foreign Certifying Authority under sub-section (1) of section 19; (c) The terms and conditions subject to which a licence may be granted under clause (c) of sub-section (3) of section 21; (d) Other standards to be observed by a Certifying Authority under clause (d) of section 30; (e) The manner in which the Certifying Authority shall disclose the matters specified in sub-section (1) of section 34; (f) The particulars of statement which shall accompany an application under subsection (3) of section 35; (g) The manner in which the subscriber shall communicate the compromise of private key to the certifying Authority under sub-section (2) of section 42. (3) Every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and
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if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or he of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under (hat regulation.

Section 90. Power of State Government to make rules.
(1) The State Government may, by notification in the Official Gazette, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: — (a) The electronic form in which filing, issue, grant receipt or payment shall be effected under sub-section (1) of section 6; (b) For matters specified in sub-section (2) of section 6; (c) Any other matter which is required to be provided by rules by the State Government. (3) Every rule made by the State Government under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House.

Section 91. Amendment of Act 45 of 1860.
The Indian Penal Code shall be amended in the manner specified in the First Schedule to this Act.

Section 92. Amendment of Act 1 of 1872.
The Indian Evidence Act, 1872 shall be amended in the manner specified in the Second Schedule to this Act.

Section 93. Amendment of Act 18 of 1891.
The Bankers' Books Evidence Act, 1891 shall be amended in the manner specified in the Third Schedule to this Act.

94. Amendment of Act 2 of 1834.
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The Reserve Bank of India Act, 1934 shall be amended in the manner specified in the Fourth Schedule to this Act.

Cases
Case 1:
Issue of SIM cards on stolen IDs is a serious security risk for genuine citizens of India since the stolen IDs will invariably be used for criminal purposes. It is reported that recently several such connections were detected in Vodafone, Maharashtra. After the recent guidelines on Sec 43A, the incident not only represents violation of KYC norms as a guideline of DOT but also a contravention of Sec 43A and Sec 72A of ITA 2008. The genuine customer who is affected by this ID theft can claim civil damages and also file an FIR for prosecution of the mobile company under Sec 72A of ITA 2008. It is also important to think of solutions to prevent such misuses. One of the requirements of Sec 43A is that any person who has provided his personal information to another person/organization under a lawful contract can demand accuracy of stored data and enforce that the e information is not used for any purpose other than what it was provided for. Every mobile company should therefore be able to provide a reverse search for a customer where he can check if his name or address or any part of his ID (PAN card no etc) is not also the part of another account with the same service provider or another service provider. A suitable mechanism for providing such information through the grievance officer of the company is therefore a requirement that every mobile company needs to provide as a part of Sec 43A and Sec 79 requirements of ITA 2008.

Case 2:
The complainant Avinash Bansal made a complaint at a local police station against Rohit who was a colleague of his wife, both of whom were working with a government department. The wordings of the complaint run as follows:?Respected Sir, This is to bring to your most urgent notice that constant threats, filthy SMS messages, abusive telephone/Mobile calls are made by Rohit in connivance with his goonda
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friends/colleagues, one of them name Pramod. The content of SMS given from email id: [email protected] at my mobile no. 98xxxxxxxx. 10/12/2004: Time (5:45 P.M to 6:00 P.M) ? ? ? ? ***** wife or your ***** story? Stop calling my office & spitting foul words about me. You did it again today? Yourself *******? But instead, I am just warning you that KEEP AWAY FROM ME? HENCEFORTH? I don‘t have any interest in your If you do it again then you will be in deep **** ? I hope this is clear to you? No more SMS or CALLS to me or to my office? For a SMS like the one you sent me in the morning I would have replied? ********* & *********** BELOVED WIFE? *********? ********

It is prayed from police that I am constantly threatened, abused, physically assaulted by Rohit to fulfill his ill desire of marrying my wife Sunita. I am under constant pressure/threat/harassment by Rohit. Kindly strict action be taken against him to that he is not successful in fulfilling his mal intentions.? On the aforesaid complaint, initially a FIR was registered u/s 509/34 IPC and the investigation was taken by the local police. The local police arrested the accused Rohit and his friend Pramod and recorded the statement of the mother of the complainant who alleged to have received filthy messages about her on her son‘s mobile no. 98xxxxxxxx which was found to be sent by Rohit and Pramod. The mobile phone detail of the complainant was also collected. During the investigation, the complainant Avinash Bansal made a submission to the local police for adding Section 67 IT Act, 2000, as the SMS he received on his mobile phone (which is an electronic medium) and read by his mother were filthy & obscene, and thus, Section 67 IT Act is applicable. The police in its wisdom (misinterpretation of IT Act) hastily added Section 67 IT Act, 2000 to the case without examining the issue in detail. However, subsequently the case was transferred to the Cyber Cell, EOW, Delhi Police. The Cyber Cell made a detailed investigation and examined the applicability of penal provisions including Section 67 IT Act which revealed that: ? The E-Mail address from which the obscene SMS was sent to the Mobile of the complainant was found in the name of Rohit, R/o xxxx, yyyy, New Delhi. The said E-Mail was found to be hosted from the server of M/s Rediff.Com India Ltd. The mother of the complainant stated that her son Avinash Bansal & his wife Sunita have strained relations and a case of divorce is going on between them. She further stated that she checked the mobile phone of her son Avinash Bansal and found that the filthy messages about her were received on the mobile which was found to be sent by Rohit.
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?

There is an ongoing dispute between the complainant and the alleged person Rohit. The complainant has earlier filed number of complaints against the alleged person Rohit. There has been a compromise signed between the alleged person Rohit & the complainant which reveals that there has been heated exchange of abusive SMS & calls between the alleged Rohit & the complainant. In the compromise dated 18/12/2004 signed by both the parties, the alleged person has stated in the said compromise letter that ?I should not be troubled with SMS and calls to me or to my office. The content of the SMS allegedly send by Rohit were restructured which reads as follows:

?

?For a SMS like the one you sent me in the morning I would have replied? ****** & ********* BELOVED WIFE? *******? ******* Yourself ********? But instead, I am just warning you that KEEP AWAY FROM ME? HENCEFORTH? I don?t have any interest in your ****** wife or your ******* story? Stop calling my office & spitting foul words about me. You did it again today! If you do it again then you will be in deep *****? I hope this is clear to you? No more SMS or CALLS to me or to my office?” Thus, the contents itself indicates that the said message was sent by the Rohit in response to the message sent by complainant. However, the message send by the complainant could not be collected because the same was not preserved by Rohit. However, the mobile detail of complainant reflects the sending of SMS by him to Rohit. Legal Proposition No offence is made out The aforesaid sequence of the case clearly reveals that it is the animosity between two persons and the complaint has been filed by the complainant to settle his personal grudge against his old foe. Not only there has been blatant misuse of Section 67 IT Act but also the offence u/s 509 IPC is not made out either. Section 506 IPC ? ? ? There is an ongoing dispute between the complainant and Rohit and both have filed a number of complaints against each other. The complainant in his complaint has himself stated that filthy SMS has been addressed to him. The wording of the aforesaid SMS sent by Rohit reveals that the SMS is abusive and is sent in rage to the complainant in response to the SMS sent by the complainant to the alleged person. Both the complainant and the alleged person are males and the SMS was sent by the alleged person with sole intention to offend the complainant. Though, the mother of the complainant has stated that she has read the message but the content, circumstances and the
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investigation reveals that the message was not intended for her. Thus, there is no intention of the Rohit to outrage the modesty of any female member of the family of the complainant and thus, section 509 IPC is not made out.

Section 67 Information Technology Act, 2000:
? As per the provision of the Section 67 IT Act, 2000 any information transmitted or published thru electronic form is obscene if: 1. It is lascivious or appeals to the prurient interest or 2. If its effect is such as to tend to deprave and corrupt persons who are likely, to read, see or hear the matter contained or embodied in it. ? ? The wordings of the SMS are offending and abusive towards the complainant and by no stretch of imagination can be said to be obscene. The message was given by the male person of adult age to other male person of the adult age and the wordings of the message of the SMS can at most be said to be offending and abusive sent by the complainant as an outrageous act with the sole intention to offend or hurt the complainant but the wordings of the SMS can hardly cause the feeling of lust or any kind of sexual reflections. Therefore, Section 67 of the IT Act, 2000 is also not attracted in the present case.

Thereafter, the cyber cell has cancelled the case and filed the cancellation report in the court which is pending adjudication. There is utmost need to make educate and train the police officers at the local police stations with respect to the applicability of the provision of Information Technology Act, 2000 to the crime situation. There should be at least one trained officer at the local police station who should be specifically trained & qualified in cyber crime investigation and the IT Law. Further, the officers at the cyber crime investigation cells should be drawn from qualified IT Professionals and special training sessions should be organized for them to keep them update about the ever changing scenario of the cyber crime situation. Note: The name of the complainant and the accused persons have been changed for the sake of privacy.

Case 3:
After several rounds of follow up it appears that Tata Docomo has removed the blocking on www.bloggernews.net. It was pointed out to the company that blocking of a website without appropriate sanction amounts to contravention of Section 69A of ITA 2008 and makes the company officials liable for imprisonment. Company has finally removed the block.
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Case 4: BPO Data theft case
The Police in its effort to crackdown on clandestine theft of data and other information from call centres, has apprehended four ex-employees, involved in such activities. The brief facts of the case are that a complaint was received from M/s Pintach Technologies Ltd. (PTL), i against Mr. Binoy, M/s Telequick and some other employees of their organization, for fraud & cheating, through theft and clandestine sale of their proprietary data. M/s PTL had a subsidiary company in United States of America under the name and style of M/s Pintach Technologies Inc. (PTI) which did business with Mortgage Originators in USA. Mortgage Originators provided loans to US residents for residential premises. The prospective loan seekers were called leads. The business of Pintach involved providing leads to Mortgage Originators. The said company bought calling data related to leads from Data Vendors in USA. The data included the particulars of the loan seekers and their telephone numbers. M/s PTI generated leads through arrangements with Call Centres in India to call from the data and shortlist home owners who were interested in availing refinance facility on their existing mortgage loans (leads). M/s PTL coordinated between M/s PTI and the call centres to give effect to the above process through its program management services. M/s PTI sent the data to M/s PTL in India who in turn provided this data to various call centres. In the year 2004, M/s PTI realized that there was a sudden drop in the productivity of the call centres and therefore the production of leads although the inputs at the end of the company meant to be given to various call centres by the employees of the company had remained same as before and increased as well to some call centres. The concerned officials of the company got alarmed and made an in house enquiry. On a careful and a meticulous scrutiny it was revealed that accused Binoy one of the employee of M/s PTL in connivance with some other officers of their organization, had been deceiving and causing wrongful loss to the company and wrongful gain for themselves, by selling the data purchased by M/s PTI in USA through a parallel company M/s Telequicks. On the said complaint a case FIR No.: XXX u/s 420/408 IPC r/w 66 IT Act, was registered and investigation taken up by the Police. The process of data receipt and delivery, follows a complicated route before the leads are delivered to the prospective buyers. The data purchased in USA by M/s PTI is emailed to M/s PTL, India in batches called buckets, usually comprising of lacs of records. It is then scrubbed with ˜Do Not Call lists and sent to designated call centres for making telephone calls to various persons in USA. The willing clients called hot leads are short-listed by the call centres and sent back to M/s PTL as prospective clients. The list of hot leads is then emailed to USA for selling to the end buyers who may be Banks, Insurance Companies etc. Preliminary investigations revealed that Mr. Binoy was working with M/s PTL since November, 2001. He was holding the post of Senior Program Manager and was the team leader for data management. While still employed at M/s PTL, Binoy along with his father P.K. Saha in January 2004, opened a partnership firm in the name and style of M/s Telequick. Binoy thereafter, brought a rediff pro email id in the name of telequick.come from Rediff.com. Using
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this id he started passing on the data bought by and belonging to M/s PTI to various call centres as if the same belonged to M/s Telequick, to make the calls on their behalf for the generation of leads. The accused, Binoy had roped in two of his colleagues namely Abdul and Sanjeev who actively assisted him in his clandestine activities. Abdul, while still an employee of the complainant company, co-ordinated with various call centres on behalf of M/s Telequicks. Sanjeev on the other hand had facilitated the installation of proprietary sequencing software in the personal computer of Binoy. In order to have a clientele base in USA, Binoy had sought the assistance of one Rajesh Srivastava an employee of PTI, based in USA. The hot leads obtained from various call centres, by Telequicks, were sold in USA to clients introduce by Rajesh. Rajesh also followed up on the payments due to Telequicks in USA. During investigations all the call centres who had been paid by Telequicks were contacted to obtain emails and the raw data sent to them as attachments. Such data was obtained from one of the call centre namely, M/s Savron, Gurgaon and compared with the data purchased by the complainant company during the period June-September 2004. As the data to be analysed was voluminous, SQL queries were formulated and the data was imported from worksheets to SQL tables. On running the queries it was revealed that some of the data buckets purchased by the complainant company matched completely with the data sent by M/s Telequick to M/s Savron. Further, a scrutiny of the emails indicated that the emails with data attachments sent by M/s Telequick had originated from the exclusive IP address allotted to M/s Pintach (PTL), the complainant company, by VSNL. Accused Binoy, Rajesh, Abdul and Sanjeev have been arrested by a team of Police from Gurgaon and Faridabad. Binoy is BTech (Textiles) and an MBA from IIT Delhi. Co-accused Rajesh Srivastava is a BE (Electronics) from Regional Engg. College, MP. Abdul is BSc (Hons) and an MBA Marketing from AMU, Aligarh. Sanjeev Sharma, is a post graduate in computer application from GNIIT and a B Com graduate. All the four accused persons were working together in M/s Pintach Technologies at one point of time were they hatched this idea to use the data of M/s Pintach for their own benefit. Binoy and Rajesh had since left M/s PTL and are running a company by the name of M/s Protech from Gurgaon. Both the accused claim themselves to be representatives of M/s LeadPointer, USA, apparently a sister concern of M/s MortagagePointer, USA to whom the leads generated through the stolen data were originally sold. Under ITA-2000 the offence is recognized both under Section 66 and Section 43. Accordingly, the persons involved are liable for imprisonment and fine as well as a liability to pay damage to the victims to the maximum extent of Rs 1 crore per victim

Case 5: State of Tamil Nadu Vs Suhas Katti Conviction
The case related to posting of obscene, defamatory and annoying message about a divorcee woman in the yahoo message group. E-Mails were also forwarded to the victim for information
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by the accused through a false e-mail account opened by him in the name of the victim. The posting of the message resulted in annoying phone calls to the lady in the belief that she was soliciting. The accused was a known family friend of the victim and was reportedly interested in marrying her. She however married another person. This marriage later ended in divorce and the accused started contacting her once again. On her reluctance to marry him, the accused took up the harassment through the Internet. The accused is convicted and is sentenced for the offence to undergo RI for 2 years under 469 IPC and to pay fine of Rs.500/-and for the offence u/s 509 IPC sentenced to undergo 1 year Simple imprisonment and to pay fine of Rs.500/- and for the offence u/s 67 of IT Act 2000 to undergo RI for 2 years and to pay fine of Rs.4000/- All sentences to run concurrently. The accused paid fine amount and he was lodged at Central Prison, Chennai. This is considered as the first case convicted under section 67 of Information Technology Act 2000 in India.

Case 6:
Mobile numbers are considered "Personal information" and are protected by privacy. However we should debate if there is a need to reconsider the issue of privacy of mobile numbers. When a person receives a call or SMS from a mobile number, his privacy is disturbed. When he receives multiple calls or multiple SMS numbers, it annoys a person and it may invoke Section 66A of ITA 2008 as an offence. In such a case the recipient of the anonymous call has a genuine right to know the identity of the person making the call. It is therefore necessary for all mobile service providers to introduce a mechanism where by if a person receives more than 3 calls from a mobile number during a period of one month, he is entitled to demand the identity of the caller from a repository of mobile directory. This is the privacy right of the call receiver pitted against the privacy right of the caller. This provision of disclosure on demand should be introduced as part of the "Due Diligence" of the intermediaries since identity of the caller is the first essential step for the call receiver to invoke the protection of ITA 2008. The exact procedure of how a demand can be made, what evidence need to be submitted etc can be decided. In order to implement the same it is also necessary for every Mobile Service provider to provide a free online copy of billing details so that the call receiver can extract the statement as a proof of having received multiple calls from a given number within a particular time. DIT has the power to issue such guidelines under Section 79/Section 67C /Sec 85 of ITA 2008.

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NDMC ELECTRICITY BILLING FRAUD CASE
The NDMC Electricity Billing Fraud Case that took place in 1996 is a typical example of data diddling. The computer network was used for receipt and accounting of electricity bills by the NDMC, Delhi. Collection of money, computerized accounting, record maintenance and remittance in he bank were exclusively left to a private contractor who was a computer professional. He misappropriated huge amount of funds by manipulating data files to show less receipt and bank remittance.

R v/s Governor of Brixton prison and another.
Facts: In this case the Citibank faced the wrath of a hacker on its cash management system, resulting in illegal transfer of funds from customers account in to the accounts of the hacker, later identified as Valdimer Levin and his accomplices. After Levin was arrested he was extradite to the United States. One of the most important issues was jurisdictional issue, the ?place of origin‘ of the cyber crime. Held: The Court helds that the real- time nature of the communication link between Levin and Citibank computer meant that Levin‘s keystrokes were actually occurring on the Citibank computer. It is thus important that in order to resolve the disputes related to jurisdiction, the issue of territoriality and nationality must be placed by a much broader criteria embracing principles of reasonableness and fairness to accommodate overlapping or conflicting interests of states, in spirit of universal jurisdiction.

State of Tamil Nadu Vs Suhas Katti Conviction
(a). The case related to posting of obscene, defamatory and annoying message about a divorcee woman in the yahoo message group. E-Mails were also forwarded to the victim for information by the accused through a false e-mail account opened by him in the name of the victim. The posting of the message resulted in annoying phone calls to the lady in the belief that she was soliciting. (b). The accused was a known family friend of the victim and was reportedly interested in marrying her. She however married another person. This marriage later ended in divorce and the accused started contacting her once again. On her reluctance to marry him, the accused took up the harassment through the Internet. Verdict (a). The accused is convicted and is sentenced for the offence to undergo RI for 2 years under 469 IPC and to pay fine of Rs.500/-and for the offence u/s 509 IPC sentenced to undergo 1 year Simple imprisonment and to pay fine of Rs.500/- and for the offence u/s 67 of IT Act
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2000 to undergo RI for 2 years and to pay fine of Rs.4000/- All sentences to run concurrently. (b). The accused paid fine amount and he was lodged at Central Prison, Chennai. This is considered as the first case convicted under section 67 of Information Technology Act 2000 in India.

Avnish Bajaj (CEO of bazzee.com – now a part of the eBay group of companies)
Facts: There were three accused first is the Delhi school boy and IIT Kharagpur Ravi Raj and the service provider Avnish Bajaj. The law on the subject is very clear. The sections slapped on the three accused were Section 292 (sale, distribution, public exhibition, etc., of an obscene object) and Section 294 (obscene acts, songs, etc., in a public place) of the Indian Penal Code (IPC), and Section 67 (publishing information which is obscene in electronic form) of the Information Technology Act 2000. In addition, the schoolboy faces a charge under Section 201 of the IPC (destruction of evidence), for there is apprehension that he had destroyed the mobile phone that he used in the episode. These offences invite a stiff penalty, namely, imprisonment ranging from two to five years, in the case of a first time conviction, and/or fines. Held: In this case the Service provider Avnish Bajaj was later acquitted and the Delhi school boy was granted bail by Juvenile Justice Board and was taken into police charge and detained into Observation Home for two days.

DASKHINA Kannada police have solved the first case of cyber crime in the district.
A press release by Dakshina Kannada Police said here on Saturday that a Father at a Christian institution in the city had approached the Superintendent of Police with a complaint that he was getting offensive and obscene e-mails. Police said that all the three admitted that they had done this to tarnish the image of the Father. As the three tendered an unconditional apology to the Father and gave a written undertaking that they would not repeat such act in future, the complainant withdrew his complaint. Following this, the police dropped the charges against the culprit. The release said that sending of offensive and obscene e-mails is an offence under the Indian Information Technology Act 2000. If the charges are framed.

R v/s Gold & Schifreen.
In this case it is observed that the accused gained access to the British telecom Prestl Gold computers networks file amount to dishonest trick and not criminal offence.
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R v/s Whiteley.
In this case the accused gained unauthorized access to the Joint Academic Network (JANET) and deleted, added files and changed the passwords to deny access to the authorized users.

Frios v/s State of Kerela
Facts: In this case it was declared that the FRIENDS application software as protected system. The author of the application challenged the notification and the constitutional validity of software under Section 70. The court upheld the validity of both. It included tampering with source code. Computer source code the electronic form, it can be printed on paper. Held: The court held that Tampering with Source code are punishable with three years jail and or two lakh rupees fine of rupees two lakh rupees for altering, concealing and destroying the source code.

Syed Asifuddin case:
Facts: In this case the Tata Indicom employees were arrested for manipulation of the electronic 32- bit number (ESN) programmed into cell phones theft were exclusively franchised to Reliance Infocom.

Held: Court held that Tampering with source code invokes Section 65 of the Information Technology Act.

Parliament Attack Case
Facts: In this case several terrorist attacked on 13 December, 2001Parliament House. In this the Digital evidence played an important role during their prosecution. The accused argued that computers and evidence can easily be tampered and hence should not be relied. In Parliament case several smart device storage disks and devices, a Laptop were recovered from the truck intercepted at Srinagar pursuant to information given by two suspects. The laptop included the evidence of fake identity cards, video files containing clips of the political leaders with the background of Parliament in the background shot from T.V news channels. In this case design of Ministry of Home Affairs car sticker, there was game ?wolf pack? with user name of ?Ashiq‘. There was the name in one of the fake identity cards used by the terrorist. No back up was taken therefore it was challenged in the Court. Held: Challenges to the accuracy of computer evidence should be established by the challenger. Mere theoretical and generic doubts cannot be cast on the evidence.
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