AI Regulation Act 2024

THE ARTIFICIAL INTELLIGENCE REGULATION ACT, 2024
Submitted by
[TEAM CODE – 51]
MANIK TINDWANI
(UNIVERSITY OF RAJASTHAN)
1ST NATIONAL DRAFTING FEST, 2024
ADR, DRAFTING & LITERARY SOCIETY
UNIVERSITY OF LUCKNOW
***
ARRANGEMENT OF SECTIONS
CHAPTER - 1
PRELIMINARY
1. Short title, extent, commencement, and application..................................................... 7
2. Definitions .................................................................................................................... 8
3. Interpretation and Savings .......................................................................................... 13
CHAPTER - II
NATIONAL ARTIFICIAL INTELLIGENCE REGULATION AUTHORITY OF INDIA
4. Establishment of the National Artificial Intelligence Regulation Authority .............. 13
5. Composition and Qualifications of Chairperson and Members ................................. 14
6. Appointment, method of recruitment, term of office, salaries, allowances, and other

conditions of service ........................................................................................................... 14
7. Power to make procedural regulations for transaction of business ............................ 15
8. Procedure for meetings and transaction of business................................................... 15
9. Vacancies etc. not to invalidate proceedings .............................................................. 16
10. Officers and employees of the Authority ............................................................... 16
11. Removal and suspension of member from office in certain circumstances ........... 16
12. Functions of the Authority...................................................................................... 17
13. Complaint to the Authority ..................................................................................... 18
14. Investigation Wings and Appointment of Director General................................... 18
15. Power of Search and Seizure .................................................................................. 19

16. Power of the Authority to refer matter for investigation or to any other Regulator19
17. Power of the Authority to pass orders .................................................................... 19
18. Power of the Authority to issue directions and penalties ....................................... 19
19. Power of District Collector ..................................................................................... 20
20. Authentication of orders and decisions of the Authority........................................ 20
21. Delegation of powers .............................................................................................. 20
22. Territorial Jurisdiction of Authority ....................................................................... 20
23. Designation of any statutory authority or body to function as the Authority ......... 21
24. Appeal to the Appellate Tribunal ........................................................................... 21
CHAPTER - III
REGULATIONS FOR THE DEVELOPMENT OF ETHICAL AND FAIR ARTIFICIAL

INTELLIGENCE SYSTEMS
25. Principles for ethical development and deployment of AI Systems....................... 21
26. General obligations of an Artificial Intelligence system provider ......................... 22
27. Obligations of Artificial Intelligence System Operators ........................................ 22
28. Half Yearly Assessment Report of Artificial Intelligence Systems to be submitted

to the Authority................................................................................................................... 23
29. Obligation for human intervention and oversight of high risk Artificial Intelligence
Systems ............................................................................................................................... 23
30. Restrictions on the use of high risk artificial intelligence systems posing a
significant risk .................................................................................................................... 24
31. Promotion of indigenous research and innovation in Artificial Intelligence ......... 24
CHAPTER - IV
NATIONAL ARTIFICIAL INTELLIGENCE POLICY, STRATEGY AND GOVERNMENT

ADOPTION
32. National Policy for Development and Deployment of Artificial Intelligence ....... 25
33. Program for rapid integration of Artificial Intelligence in Government Operations25
34. Framework for procurement, development, testing, audit, integration, and

oversight of artificial intelligence systems for adoption by Government .......................... 26
35. Oversight Committee for implementation and review of policies, programs,
schemes, etc. made under the Act....................................................................................... 26
36. Obligation of Government Instrumentalities using Artificial Intelligence Systems27
37. Restrictions on governmental use of certain AI applications ................................. 28
CHAPTER - V
COMPULSORY CERTIFICATION OF ARTIFICIAL INTELLIGENCE SYSTEMS
38. Compulsory registration of Artificial intelligence systems .................................... 28
39. Certification requirements for Artificial intelligence systems ............................... 29
40. Application for registration of Artificial intelligence systems ............................... 29
41. Grant of certificate of registration .......................................................................... 29
42. Certification guidelines for high risk Artificial intelligence systems ..................... 29
43. Additional obligations for operators of certified high risk systems ....................... 30
44. Audit of registered Artificial intelligence systems ................................................. 30
45. Maintenance of records .......................................................................................... 30
46. Modification or withdrawal of certificate of registration ....................................... 30
47. Appeals ................................................................................................................... 31
CHAPTER - VI
ARTIFICIAL INTELLIGENCE DISPUTES SETTLEMENT AND APPELLATE TRIBUNAL
48. Establishment of the Artificial Intelligence Dispute Settlement and Appellate

Tribunal. ............................................................................................................................. 31
49. Application of Settlement of Disputes and Appeal to the Appellate Tribunal. ...... 31
50. Composition of the Appellate Tribunal. ................................................................. 32
51. Qualifications for appointment of Chairperson and Members. .............................. 33
52. Term of office. ........................................................................................................ 34
53. Vacancies. ............................................................................................................... 34
54. Removal and resignation. ....................................................................................... 34
55. Staff of Appellate Tribunal. .................................................................................... 35
56. Distribution of business amongst Benches. ............................................................ 35

57. Power of Chairperson to transfer cases. ................................................................. 35
58. Decision to be by majority. .................................................................................... 35
59. Members, etc., to be public servants. ..................................................................... 35
60. Civil Courts not to have jurisdiction. ..................................................................... 36
61. Procedure and powers of Appellate Tribunal. ........................................................ 36
62. Right to legal representation. .................................................................................. 37
63. Appeal to Supreme Court. ...................................................................................... 37
64. Orders passed by Appellate Tribunal to be executable as a decree. ....................... 37
CHAPTER - VII
OFFENCES AND PENALTIES
65. Penalty for violation of Act, rules, and regulations and orders / directions issued
thereunder ........................................................................................................................... 38
66. Penalty for violating terms and conditions of registration or certification ............. 38
67. Penalty for failure to furnish information, returns or statements ........................... 38
68. General provision regarding penalties .................................................................... 38
69. Cognizance of offences .......................................................................................... 38
70. Offences by companies and government departments ........................................... 39
71. Offences by Government Departments. ................................................................. 39
72. Compounding of certain offences .......................................................................... 40
CHAPTER - VIII
MISCELLANEOUS
73. Grants by the Central Government ......................................................................... 40
74. National Artificial Intelligence Regulation Fund ................................................... 40
75. Accounts and audit ................................................................................................. 41
76. Annual report .......................................................................................................... 41
77. Budget and Annual Financial Statement ................................................................ 41
78. Power to raise finances ........................................................................................... 41
79. Protection of action taken in good faith.................................................................. 42

80. Members and employees to be public servants ...................................................... 42
81. Exemption from tax ................................................................................................ 42
82. Power of Central Government to issue directions .................................................. 42
83. Power to make rules ............................................................................................... 43
84. Rules and regulations to be laid before Parliament ................................................ 43
85. General power to remove difficulties ..................................................................... 44
86. Act to have overriding effect .................................................................................. 44

***
An Act to provide for the establishment of the National Artificial Intelligence

Regulation Authority of India and allied bodies to regulate the development,
creation, deployment, provision, intermediation, sale, use, and operation of
Artificial Intelligence systems in India;
AND WHEREAS, to provide for rules of conduct of its business; AND to

define its functions and purpose; AND to provide for the establishment of
authorities for timely and effective management of its affairs;
AND WHEREAS, to provide for transparent, fair, ethical, safe, reliable,

secure, and accountable development, deployment and application of
artificial intelligence while protecting rights of artificial intelligence system
providers and artificial intelligence system operators in India;
AND WHEREAS, to provide for regulation of the conduct of artificial

intelligence system providers and artificial intelligence system operators in
India;
AND WHEREAS, to promote the indigenous research, development, and use

of artificial intelligence systems in India (including its use in defence,
national security, infrastructure, healthcare, education, communication,
judiciary, government administration operations);
AND WHEREAS, to provide for the establishment of an effective and

efficient complaint and redressal mechanism for effective enquiry, inquiry,
and investigation of reported violations, and for matters connected therewith
or incidental thereto.
CHAPTER - 1
PRELIMINARY
1. Short title, extent, commencement, and application

(1) This Act may be called the Artificial Intelligence Regulation Act, 2024.
(2) It extends to the whole of India and applies to—
(a) all citizens of India residing in India and outside India; and
(b) all companies, bodies of individuals, associations of persons, establishments,
organisations, entities, societies, artificial intelligence system providers, or
artificial intelligence system operators established, registered, or incorporated
outside India transacting their business and managing their state of affairs, in
part or in whole, within India, or which are registered or incorporated in India
or have a place of business in India; and
(c) artificial intelligence systems offered, provided, created, provided,
intermediated, in part or in whole, within the territory of India or outside India,
for sale, use, or operation within India, by citizens of India residing within the
territory of India, or outside India; and
(d) research, development, and application of artificial intelligence systems related
to defence, national security, infrastructure, healthcare, education,
communication, judiciary, and government administration operations carried
out in the territory of India; and
(e) artificial intelligence techniques, systems, machines, algorithms, data,
platforms, systems, hardware offered, adopted, or proposed to be used by the
Central Government or State Governments or instrumentalities owned,
managed, financed, or controlled by it, in part or in whole.
(3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint, and different dates may be appointed
for different provisions of this Act and for different States and any reference in any
such provision to the commencement of this Act shall be construed in relation to
any State as a reference to the coming into force of that provision in that State.
2. Definitions
In this Act, unless the context otherwise requires —
(1) “Act” means the Artificial Intelligence Regulation Act, 2024;

(2) “algorithm auditing” refers to assessment procedures designed to proactively
detect, diagnose, and mitigate risks associated with algorithm systems using
methods like data and process audits.
(3) “algorithmic transparency” refers to disclosure of information about business
logic, data models and techniques enabling inspection, monitoring and traceability
of algorithm systems.
(4) “appellate tribunal” means the Artificial Intelligence Disputes Settlement and
Appellate Tribunal established under this Act;
(5) “artificial intelligence system” means any device, computer program, code,
software, algorithm, or artificially intelligent machine designed by using artificial
intelligence techniques that can, for a given set of defined objectives, make
predictions or decisions influencing real or virtual environments, or create media. It
includes, inter alia:
(i) any machine learning computer systems designed to automatically improve
through experience and data without being explicitly programmed;
(ii) any natural language computer systems designed to enable human-machine
interaction through natural languages;
(iii) any computer vision computer systems designed to extract meaning and
intent from visual elements;
(iv) any expert computer systems designed to provide advice or solutions based
on rules and data provided;
(v) any robotics computer enabled physical systems designed to automatically
handle tasks through methods of sensing and operating on a physical
environment.
(6) “artificial general intelligence” refers to an artificial intelligence system having
flexibility, common sense and general cognitive abilities to complete a
comprehensive range of intellectual tasks and equalling capability of the human
mind.
(7) “artificial intelligence system operator” refers to a person engaged in
administering, managing, or using an artificial intelligence system.
(8) “artificial intelligence system provider” refers to a person engaged in conception,
research, development, designing, gathering of dataset, testing, deployment, or
integration of an artificial intelligence system to offer products or services or
provide decisions or predictions or creation of media, and includes a vendor selling
such system and intermediary mediating the provision of such system.
(9) “artificial intelligence techniques” include machine learning, natural language
processing, computer vision, speech recognition, robotic process automation,
optimization algorithms, expert systems, neural networks, deep learning, soft
computing, deep learning, genetic algorithms, reinforcement learning used to
develop intelligent machines, and any other such method which enables, inter alia,
visual perception, speech recognition, decision making, language translation,
prediction, and creation of media.
(10) “artificially intelligent machine” means the simulation of human intelligence in a
machine that has the ability to perform tasks requiring human-level intelligence,
including, inter alia, visual perception, speech recognition, decision making,
language translation, prediction, and creation of media through any artificial
intelligence technique.
(11) “authority” means the National Artificial Intelligence Regulatory Authority of
India established under this Act.
(12) “chief artificial intelligence officer” refers to the Chief Artificial Intelligence
Officer appointed under this Act responsible for the realization of intended benefits
of Artificial Intelligence systems, compliance, and addressing grievances related to
artificial intelligence systems in an instrumentality owned, controlled, managed or
financed by the Central Government or State Governments, as the case maybe.
(13) “computer system” refers to an electronic or digital product with one or more
microprocessors with the capability to receive, store, process, retrieve, transmit or
perceive data and instructions in accordance with computation algorithms.
(14) “computer vision” refers to ability of computer systems to extract high-dimensional
data from digital images, videos, or camera inputs which enables classification,
detection, segmentation, tracking and analysis for understanding real world.
(15) “creation of media” refers to ability of computer systems for generation of original
letters, figures, symbols, text, image, audio, video, or other digital artefacts using
algorithms trained on large volume of data samples without requiring explicit
additional programming.
(16) “decision making” means ability of an artificial intelligence system to make
decisions, intended to significantly affect a person, business or entity, without
human intervention using solely technical means.
(17) “deep learning” refers to advanced neural networks with multiple abstraction
layers designed to learn data representations for pattern recognition, speech
classification, image classification, or detections tasks.
(18) “expert systems” refer to ability of computer systems to provide subject specific
advice, recommendations and solutions based on rules and facts around reasoning
and use of knowledge in specialized domains;
(19) “fund” refers to the National Artificial Intelligence Regulation Fund set up under
this Act.
(20) “genetic algorithms” refer to search optimization techniques inspired by process of
natural selection having crossover or mutations to arrive optimal solutions
iteratively.
(21) “grievance” refers to complaints filed to the Authorities under this Act.
(22) “high risk artificial intelligence system” refers to an artificial intelligence system
having significant potential to cause harm to health, safety, security, rights,
freedoms of persons, or cause misinformation, bias, discrimination, unfair
outcomes, and which has potential to prejudice sensitive personal information,
secure data public morality, decency, security, public interest, the interest of the
sovereignty and integrity of India, the security of the State, friendly relations with
foreign States, or public order which may include systems enabled with artificial
general intelligence having ability for recursive self-improvement.
(23) “language translation” refers to ability of computer systems to analyze corpus of
text or speech in one language and interpret, convert accurately into another
language using computational linguistics deep learning models.
(24) “machine learning” refers to ability of computer systems to learn and improve
from experience without being explicitly programmed. It focuses on development
of programs with algorithms that can analyze data to detect patterns, learn from
insights and make decisions or predictions.
(25) “media” refers to content in the form of letters, figures, symbols, text, images,
audio, video, or other forms stored, processed, and communicated digitally by
computing systems, mobile devices, hosting services, internet, and online
platforms.
(26) “natural language processing” refers to ability of computer systems to understand,
interpret, manipulate and generate human languages. It enables machine reading,
understanding complex languages, summarization, translations, speech to text
conversions among other things.
(27) “neural networks” refer to computer systems modelled on the human brain and
nervous system recognizing patterns capable of machine perception, learning, or
decision making.
(28) “notification” means a notification published in the Official Gazette;
(29) “opposite parties” means the persons against whom the complaint is filed to the
authorities under this Act;
(30) “optimization algorithms” refer to ability of computer systems to find most
efficient solutions given certain constraints to maximize desired factors in
problems with multiple variables.
(31) “person” means a person as defined in sub-section (31) of section 2 of the Income
tax Act, 1961 (43 of 1961) and includes an establishment, organisation,
instrumentality, entity, society, artificial intelligence system provider, or artificial
intelligence system operator established, registered, or incorporated outside India
transacting their business and managing their state of affairs, in part or in whole,
within India, or which are registered or incorporated in India or have a place of
business in India;
(32) “prediction” refers to ability of computer systems based on techniques including,
inter alia, machine learning, neural networks to analyze structured, unstructured
data to estimate likelihood of future outcomes, trends, and forecast variables.
(33) “prescribed” means prescribed by rules or specified in the regulations made under
this Act.
(34) “reinforcement learning” refers to ability of computer systems to perform self-
learning approaches followed by computer systems through trial and error
interactions with dynamic environments to determine ideal behaviours based on
maximizing cumulative reward overtime.
(35) “robotic process automation” refers to ability of computer systems to automate
repetitive digital tasks reducing need for human effort by integrating applications,
manipulate data, or process transactions interpreting outputs.
(36) “sensitive personal data” refers to data revealing passwords, privileged
communications, financial information, physical, physiological, or mental health
conditions, sexual orientation, medical records and history, genetic and biometric
information, caste, and tribe status;
(37) “soft computing” refers to ability of computer systems based on computational
techniques focused on finding optimal solutions when problem formulation has lot
of complexities or ambiguities such as vagueness, uncertainty, partial truths
applying concepts including, inter alia, fuzzy logic, neural networks, or
evolutionary algorithms.
(38) “specified” means specified in the regulations made by the Authority under this
Act;
(39) “speech recognition” refers to ability of computer systems to accurately transcribe
and understand spoken language and enable computer systems to handle speech
inputs, voice commands for interactions.
(40) “speech recognition” refers to ability of computer systems to accurately process,
interpret spoken languages, transcribe into texts, perceive acoustic signals using
natural language models, algorithms to analyze tone, sentiment and generate
relevant textual response.
(41) “visual perception” refers to ability of computer systems to interpret, analyze and
understand digital images, videos and multi-modal sensory inputs using computer
vision models to identify objects, scenes, faces for detection, classification,
segmentation to enable describing textual context.
(42) the words and expressions used and not defined in this Act but defined in the
Information Technology Act, 2000 (21 of 2000) and the rules made thereunder, in
so far as feasible, shall have the meanings respectively assigned to them in the Act
or the rules, as the case maybe.
3. Interpretation and Savings

(1) The provisions of this Act shall be in addition to and not in derogation of any other
law for the time being in force unless the context otherwise requires.
(2) Nothing contained in this Act shall exempt any person or artificial intelligence
system from complying with the provisions of any other laws unless the context
otherwise requires.
CHAPTER - II
NATIONAL ARTIFICIAL INTELLIGENCE REGULATION AUTHORITY OF INDIA
4. Establishment of the National Artificial Intelligence Regulation Authority

(1) The Central Government shall, by notification, establish with effect from such date
as it may specify in that notification, an authority to be known as the National
Artificial Intelligence Regulation Authority to exercise powers conferred under this
Act.
(2) The Authority shall be a body corporate by the name aforesaid having perpetual
succession and a common seal, with power, subject to the provisions of this Act, to
acquire, hold and dispose of property, both movable and immovable, and to contract
and shall by the said name sue or be sued.
(3) The headquarters of the Authority shall be at such place in the National Capital
Region of Delhi, and it shall have regional and other offices in any other place in
India as the Central Government may decide.
5. Composition and Qualifications of Chairperson and Members
(1) The Authority shall consist of a Chairperson, a Vice-Chairperson and such number
of other members as may be prescribed, to be appointed by the Central Government
to exercise the powers and discharge the functions under this Act.
(2) The Chairperson and Members shall be skilled in or possess specialized knowledge
in information technology, computer applications, computer systems, artificial
intelligence systems, artificial intelligence techniques, artificially intelligent
machines, information technology, cyber-physical systems, data privacy, law, social
science, national security, or public policy.
(3) The Chairperson shall have powers of general superintendence and directions in the
conduct of the affairs of the Authority and he shall, in addition to presiding over the
meetings of the Authority, exercise and discharge such powers and functions of the
Authority and shall discharge such other powers and functions as may be prescribed.
(4) The Vice-Chairperson may exercise and discharge such powers and functions of the
Chairperson as may be prescribed or as may be delegated to him by the Chairperson.
(5) Every regional office established shall consist of a superintending Commissioner and
such number of other members as may be prescribed, to be appointed by the Central
Government to exercise the powers and discharge the prescribed functions under the
supervision of the Authority and the Central Government.
6. Appointment, method of recruitment, term of office, salaries, allowances, and

other conditions of service
The Central Government may, by notification, make rules to provide for the
appointment, method of recruitment, procedure for appointment, term of office,
salaries and allowances, resignation, removal and other terms and conditions of the
service of the Chairperson, the Vice Chairperson, and other members of the
Authority.
7. Power to make procedural regulations for transaction of business
(1) The Authority may, by notification, make regulations consistent with this Act and
the rules made thereunder to regulate the procedure for transaction of its business
and allocation of its business amongst the Chairperson, the Vice-Chairperson, and
the members and 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 times and places of meetings of the Authority and the procedure to be
followed at such meetings under this Act, including quorum necessary for
the transaction of business;
b. the transaction of business at the meetings of the Authority under this Act;
c. matters in respect of which record is to be maintained by the authority
under this Act;
d. levy fees on registration and certification of artificial intelligence systems
under this Act;
e. charges for any other services with the matters connected therewith and
incidental thereto; and
f. any other matter which is prescribed by rules, or in respect of which
provision is made under this Act.
8. Procedure for meetings and transaction of business

(1) The Authority shall conduct meetings, through online or offline means, at such times
and places and shall observe such procedure as to the transaction of business at its
meetings as may be specified by regulations.
(2) The Authority shall conduct not less than twenty-four annual meetings and the
duration between two consecutive meetings shall not exceed sixty official working
days.
(3) If the Chairperson for any reason is unable to attend a meeting of the Authority, any
other member authorised by the Chairperson to attend the meeting in case of such
vacancy or if no such member is authorised then any other member chosen by
majority of the members present from amongst themselves at the meeting shall
preside at the meeting.
(4) All questions which come up before any meeting of the Authority shall be decided
by a majority vote of the members present and voting, and in the event of an equality
of votes, the Chairperson or in his absence, the person presiding, shall have a second
or casting vote.
9. Vacancies etc. not to invalidate proceedings

No act or proceeding of the Authority shall be invalid merely by reason of –
(a) any vacancy in, or any defect in the constitution of, the Authority; or
(b) any defect in the appointment of a person acting as Chairperson or other Member of
the Authority; or
(c) any irregularity in the procedure of the Authority not affecting the merits of the case
and not prejudicing the powers or functions of the authority.
10. Officers and employees of the Authority

(1) The Authority may appoint such officers and employees as it considers necessary for
the efficient discharge of its functions under this Act in the manner prescribed.
(2) The salaries, allowances, and other remunerations, monetary or otherwise, payable to
and the other terms and conditions of service of the officers and employees of the
Authority shall be such as may be prescribed by the Central Government.
11. Removal and suspension of member from office in certain circumstances
(1) The Central Government may remove from office any member, who,-
a. has been adjudged as insolvent; or
b. has been convicted of an offence which, in the opinion of the Central
Government, involves moral turpitude; or
c. has become physically or mentally incapable of acting as a member; or
d. has acquired such financial or other interest as is likely to affect
prejudicially his functions as a member; or
e. has so abused his position as to render his continuance in office prejudicial
to the public interest.
(2) No such member shall be removed from his office under clause (d) or clause (e) of
sub-section (1) unless he has been given a reasonable opportunity of being heard in
the matter.
12. Functions of the Authority

(1) Notwithstanding anything contained in the Information Technology Act, 2000, the
Authority shall-
a. make recommendations to Central Government on:
i. terms and conditions for registration of artificial intelligence
systems;
ii. revocation of registration for violations of prescribed standards;
iii. measures to efficiently govern artificial intelligence development,
deployment, and use across sectors;
iv. ensuring compliance to the provisions specified and rules made
under this Act and rules formulated under the Information
Technology Act, 2000 governing artificial intelligence and
associated technologies.
b. discharge following functions:
i. ensure compliance to conditions and technical standards for
registered artificial intelligence systems under this Act;
ii. efficient regulation of development, testing, deployment, and use of
artificial intelligence systems under this Act;
iii. ensure compliance to rules governing artificial intelligence and
associated technologies prescribed under the Information
Technology Act, 2000;
iv. ensure compliance to regulations and standards prescribed under
this Act by all persons;
v. take measures to prevent violations of the Act and harms from
artificial intelligence systems which is likely to prejudice public
interest;
vi. determine through regulations the fees and charges for registration
and certifications of artificial intelligence systems, and for services
offered in connection to or matters concerned therewith;
vii. perform such other functions entrusted by the Central Government
through notification including administrative, financial functions or
incidental to provisions of this Act.
(2) Without prejudice to sub-section (1), the Authority can:
a. inquire into violations of the Act suo moto, or based on complaints or
directions;
b. issue necessary directions and orders for efficient discharge of functions;
c. file complaints against violations or offenses under the Act;
d. create awareness about offense/redressal mechanisms, encourage
coordination between authorities;
e. issue advisories to Government departments on policy measures related to
artificial intelligence regulation;
f. make recommendations for appropriate guidelines and adoption of global
best practices around artificial intelligence governance to relevant
authorities and stakeholders.
(3) The Authority shall ensure transparency in exercising powers and discharging
functions under sub-sections (1) and (2) subject to the welfare of sovereignty,
integrity, security, and public interest of India.
13. Complaint to the Authority

(1) Any person my file a complaint regarding contraventions under this Act, in writing
or electronically or in any other mode prescribed, to the Authority, District
Collector, or any other authority notified by the Central Government to function in
this behalf.
(2) The procedure relating to filling, limitation period, inquiry into, and disposal of
complaints shall be as prescribed by the rules and specified by the regulations
provided that every complaint filed under sub-section (1) shall be disposed of in
not more than thirty official working days.
14. Investigation Wings and Appointment of Director General

(1) The Authority shall have such number of investigation wings for efficiently
conduct inquiry and investigation as per its directions into contraventions under
this Act and each of such investigation wing shall be headed by a Director General.
(2) The Central Government shall appoint a Director General and other officers in the
wing having qualifications and experience in investigation as prescribed.
(3) The Director General can delegate powers to additional, joint, deputy and assistant
directors for conducting investigations which shall be submitted to the Authority as
per procedure specified through regulations.
15. Power of Search and Seizure

The Authority or officers empowered by it can conduct search and seizures, summon
persons, direct submission of relevant information and documents, and appoint
inquiry officers for investigation purposes under this Act in the manner prescribed.
16. Power of the Authority to refer matter for investigation or to any other Regulator
If preliminary inquiries by the Authority prima facie indicates that the issues
observed are under the purview of any other regulator, it may refer the matter along
with its report to the concerned regulator provided that such other regulator shall for
the purpose of inquiry, investigation, or analysis of such reported issue shall observe
the procedure prescribed by the rules and specified in the regulations as if it was the
Authority under this Act.
17. Power of the Authority to pass orders

Where investigations provide sufficient evidence of violations of provisions, rules,
regulations under this Act, the Authority can pass necessary orders to discharge its
functions.
18. Power of the Authority to issue directions and penalties

(1) Where the Authority is satisfied after investigation that such act or omission
punishable under this Act has been committed by any person which is against the
interest of the sovereignty and integrity of India, the security of the State, friendly
relations with foreign States, public order, decency or morality or is in contravention
of any rules, regulations, directions or order notified under this Act before such
commission or omission, it may, by order, issue directions to such person, as the
case may be, to discontinue such act or omission or to modify the same, after
providing opportunity of being heard to the opposite parties, in such manner and
within such time as may be specified in that order.
(2) Notwithstanding the order passed under sub-section (1), if the Authority is of the
opinion that it is necessary to impose a penalty in respect of such violation, by a
person, it may, by order, impose on such person a penalty which may extend to ten
lakh rupees; provided that the Authority may, for every subsequent contravention by
a manufacturer or endorser, impose a penalty, which may extend to fifty lakh rupees;
provided further that the fine charged under this section shall be, insofar as feasible,
proportionate to the degree of the offence committed by the person and for the
purpose of calculation of such apportionment of fine the offences and penalties
prescribed under this Act shall be considered.
19. Power of District Collector

The District Collector may, on reference from the Authority, inquire into complaints
regarding violations of rules, regulations, directions, or orders under this Act within
his jurisdiction and submit reports in the manner prescribed by rules and specified by
the regulations.
20. Authentication of orders and decisions of the Authority

All orders and decisions of the Authority shall be authenticated by the signature of
the Chairperson, or any other member authorized by the Chairperson for such
authentication, or in case no such member is authorised then any other member
authorised chosen by majority of the other members from amongst themselves in this
behalf.
21. Delegation of powers

The Authority may, by general or special order in writing delegate to any Member or
officer of the Authority, or a bench, or an investigation wing appointed by it, subject
to such conditions, if any, as may be specified in the order, such of its powers and
functions under this Act (except the power to make regulations) as it may deem
necessary.
22. Territorial Jurisdiction of Authority

(1) The jurisdiction of the Authority may be exercised through various benches as
constituted by the Chairperson.
(2) The benches of the Authority shall ordinarily sit in New Delhi or such other places
as the Central Government may, in consultation with the Chairperson, notify.
(3) The Central Government shall determine, and through notification provide
information about, the areas in relation to which each bench of the Authority may
exercise jurisdiction.
(4) The Authority may appoint different investigation wings for the purpose of efficient
functioning of benches established under sub-section (1).
23. Designation of any statutory authority or body to function as the Authority

The Central Government may, if it considers necessary, by notification, designate
any statutory authority or body to exercise the powers and perform the functions of
the National Artificial Intelligence Regulation Authority of India established under
this Act.
24. Appeal to the Artificial Intelligence Disputes Settlement and Appellate Tribunal
A person aggrieved by any order or direction passed by the Authority under this Act
may file an appeal to the Artificial Intelligence Disputes Settlement and Appellate
Tribunal established under this Act within a period of thirty days from the date of
receipt of such order or direction.
CHAPTER - III
REGULATIONS FOR THE DEVELOPMENT OF ETHICAL AND FAIR ARTIFICIAL

INTELLIGENCE SYSTEMS
25. Principles for ethical development and deployment of Artificial Intelligence

Systems
The artificial intelligence system providers shall adhere to the following core
principles and shall make adequate effective safeguards while developing or
deploying an artificial intelligence systems:
(a) the artificial intelligence system must be explainable, open and transparent
with respect to their capabilities, limitations and processes;
(b) the artificial intelligence system must have effective safeguards to avoid
misinformation, bias, discrimination, and unfair outcomes across all
concerned groups;
(c) the artificial intelligence system must have effective safeguards to protect
sensitive personal information and secure data used;
(d) the artificial intelligence systems must function reliably and safely without
prejudicing public morality, decency, security, and public interest;
(e) the artificial intelligence systems must function without prejudicing the
interest of the sovereignty and integrity of India, the security of the State,
friendly relations with foreign States, and public order.
26. General obligations of an Artificial Intelligence system provider

(1) An artificial intelligence system provider offering an artificial intelligence system
shall have the obligation to make adequate effective safeguards to ensure that:
a. the outcomes and decisions of the artificial intelligence systems can be
interpreted and explained to end-users and stakeholders impacted;
b. the decisions or predictions of the artificial intelligence systems do not
result in any unreasonable discrimination against individuals based on
gender, caste, community, or ethnicity;
c. the performance of the artificial intelligence system in live environment is
robust, reliable and does not pose unjust safety risks across its operational
lifecycle;
d. appropriate measures such as maintainability of technical documentation,
algorithm traceability, system design disclosures and user-friendly
explanations are implemented to ensure transparency in development and
explainability in use of artificial intelligence systems;
e. data, algorithms, and models powering Artificial intelligence systems are
frequently audited for assessing compliance with ethical norms of
transparency, privacy protection, fairness, and accountability.
(2) An artificial intelligence system provider must be accountable for decisions and
outcomes made by the artificial intelligence system being offered and an effective
grievance redressal mechanism is available for artificial intelligence system
operators in case such accountability arises incidental to the deployment or use of
such artificial intelligence system.
27. Obligations of Artificial Intelligence System Operators

An artificial intelligence system operator using an artificial intelligence system
shall:
a. clearly declare upfront the use of an artificial intelligence system in arriving
at decisions, predictions, generation of content, or any other automated
output;
b. specify the precise contribution made by the artificial intelligence system in
output produced and not present entire output as exclusively produced by
artificial intelligence;
c. include appropriate qualifiers and disclaimers highlighting the possibility of
inaccuracies along with errors and statistical variances in systems that
leverage machine learning;
d. proactively identify and minimize sources of bias, prejudice, unfair
profiling, or discrimination on the basis of race, gender, caste, ethnicity in
data as well as algorithms;
e. maintain readiness to disclose relevant details pertaining to working of the
artificial intelligence system, data sets used and decisions made upon
legitimate requests subject to reasonable exceptions and limitations;
f. not make any claims as to patent, copyright, or other intellectual property
rights over content, innovations generated autonomously by artificial
intelligence systems deployed or used.
28. Half Yearly Assessment Report of Artificial Intelligence Systems to be submitted

to the Authority
(1) Every artificial intelligence system provider shall prepare an assessment report in
every six months for compliance of obligations under this Act in the prescribed
manner.
(2) The artificial intelligence system provider for the purpose of preparing the
assessment report under sub-section (1) shall carry out impact assessment of the
artificial intelligence system including assessment of intended outcomes, data
quality, algorithm audit mechanisms, measures for fairness, options for redressal in
case accountability arises.
29. Obligation for human intervention and oversight of high risk Artificial
Intelligence Systems
An artificial intelligence system provider offering a high risk artificial intelligence
system shall have adequate provisions for immediate and effective human
oversight and discretionary intervention in deployment as safeguard against risk
potential of such system.
30. Restrictions on the use of high risk artificial intelligence systems posing a
significant risk
(1) No person shall deploy or use a high risk artificial intelligence system posing
significant risk unless adequate provisions for transparency, fairness, accountability
and impartial external audits and assessment are made by the Authority.
(2) No person shall deploy or use a high risk artificial intelligence system posing
significant risk for any purpose concerned with or incidental to be used for any
purpose concerned with defence, national security, infrastructure, healthcare,
education, communication, judiciary, and government administration operations.
31. Promotion of indigenous research and innovation in Artificial Intelligence

The Central Government on recommendations of the Authority may introduce
policies, programs, schemes, incentives, and institutional mechanisms for
strengthening indigenous research capabilities, fostering technology innovation,
facilitating advanced skills development in artificial intelligence and its associated
fields complying with the obligations under the Act including, inter alia, the
following:
a. providing access to compute resources, datasets, tools, and mentoring

networks for micro, small, medium enterprises registered or incorporated in
India along with connectivity to venture funding and private equity;
b. providing tax rebates, concessions, subsidies, or other equitable perquisites
in kind for strengthening indigenous research capabilities, fostering
technology innovation, facilitating advanced skills development in artificial
intelligence and its associated fields;
c. providing education opportunities for development of foundational skills in
mathematics, computing, statistics for future jobs in artificial intelligence
and advanced training programs to foster highly qualified researchers and
technologists possessing cutting edge capabilities;
d. creating a dedicated fund through allocation of resources for advancing core
research, prototype development and encourage innovation ecosystem
towards responsible and human-centric artificial intelligence systems
aligned to ethical values and principles of transparency, privacy and
accountability.
CHAPTER - IV
NATIONAL ARTIFICIAL INTELLIGENCE POLICY, STRATEGY AND

GOVERNMENT ADOPTION
32. National Policy for Development and Deployment of Artificial Intelligence

(1) The Central Government on recommendations of the Authority shall notify a
national strategy for the development and deployment of artificial intelligence
outlining short-term and long-term priorities, rights, duties, obligations, guidelines,
and framework for building artificial intelligence capacities and infrastructure,
fostering research and innovation, skilling for future jobs, ethical development, and
deployment of artificial intelligence systems across different sectors complying
with the obligations under the Act.
(2) The national strategy shall aim at the adoption of artificial intelligence systems
across different sectors for increasing efficiency and it shall incorporate a strategy
for responsible artificial intelligence system development, mechanisms for
technology translation, provisions to assess macroeconomic impact and
requirements for international collaboration complying with the obligations under
the Act.
33. Program for rapid integration of Artificial Intelligence in Government

Operations
The Central Government on recommendations of the Authority may initiate a
defined program across all instrumentalities owned, controlled, financed or
managed, in part or in whole, by Central Government or State Governments
facilitating the adoption of artificial intelligence systems for increasing efficiency
through mechanisms for procurement, testing, and integration of such systems,
while laying down protocol to assess outcomes of artificial intelligence deployment
through appropriate frameworks complying with the obligations under the Act.
34. Framework for procurement, development, testing, audit, integration, and
oversight of artificial intelligence systems for adoption by Government
(1) The Central Government on recommendations made by the Authority shall notify a
standardized framework for procurement, development, testing, audit, integration,
and oversight of artificial intelligence systems for adoption across all
instrumentalities owned, controlled, financed, or managed, in part or in whole, by
Central Government or State Governments, as the case maybe.
(2) The framework shall define a protocol for determining technical specifications,
architecture requirements, artificial intelligence system vendor selection criteria,
installation methodology, and change management procedures.
(3) The Central Government or State Governments, as the case maybe, shall provide
appropriate infrastructure and procedures for rigorous testing of governmental
artificial intelligence systems sought for adoption covering aspects of accuracy,
explainability, adversarial robustness, unbiasedness, and compliance with the
obligations under the Act.
35. Oversight Committee for implementation and review of policies, programs,

schemes, etc. made under the Act
(1) The Authority shall establish an independent, multi-disciplinary high level
oversight committee having such number of members as maybe prescribed for
undertaking periodic review across focus sectors, assessing efficacy of policies,
programs, schemes, incentives, institutional mechanisms, strategies, and
frameworks made under this Act for development, deployment or adoption of
artificial intelligence systems, providing recommendations to the Authority and the
stakeholders for increasing effectiveness and efficiency of such policies, programs,
schemes, incentives, institutional mechanisms, strategies, and frameworks made
under this Act for development, deployment, or adoption of artificial intelligence
systems.
(2) The evaluation reports submitted by the oversight committee established under
sub-section (1) shall highlight the key findings, recommendations for
modifications, and amendments required in any policy, program, scheme,
incentive, institutional mechanism, strategy, or framework made under this Act for
development, deployment or adoption of artificial intelligence systems and
reviewed under sub-section (1).
36. Obligation of Government Instrumentalities using Artificial Intelligence
Systems
(1) All instrumentalities owned, controlled, managed, or financed by the Central
Government or the State Governments shall-
a. keep citizens informed through appropriate channels about usage of
algorithmic systems, their capabilities, limitations, and measures instituted
for accountability, fairness and human oversight in an accessible format;
b. organise tailored capacity-building initiatives on ethical oversight,
auditability mechanisms shall be instituted targeting government leadership,
programme heads and key personnel likely to procure and manage AI
deployments in public sector;
c. notify time-bound grievance redressal processes against decisions and
outcomes of artificial intelligence system shall be enabled ensuring due
diligence, auditability and provisions for remedial actions or compensation
to affected persons;
d. submit periodic evaluations to the Authority summarizing intended benefits
metrics, key challenges and measures around transparency, bias mitigation
and stakeholder consultations during development life cycle;
e. designate a Chief Artificial Intelligence Officer responsible for realization
of intended benefits, compliance with regulations around transparency,
fairness and addressing grievances that may arise from respective AI
deployments through appropriate mechanisms.
(2) The Chief Artificial Intelligence officer appointed by every governmental
instrumentality deploying or intending to deploy artificial intelligence systems
under clause (e) of sub-section (1) shall be responsible for:
a. ensuring adherence with principles of transparency, privacy, ethics and non-
discrimination for respective public Artificial intelligence systems;
b. instituting appropriate accountability frameworks covering target setting,
impact assessment mechanisms, and continuous monitoring processes;
c. setting up grievance redressal systems including intent declaration,
explanation processes, and provisions for appeals;
d. carrying out compulsory algorithmic impact audits through methods such as
bias testing, reverse engineering, and probing;
e. promoting awareness and overseeing capacity building of employees
regarding artificial intelligence and obligations under this Act;
f. submitting periodic reports to the Authority summarizing intended benefits
realized, adverse consequences if any and measures implemented towards
fair, transparent and accountable Artificial intelligence systems in their
functioning;
g. enabling access to de-identified data sets after due diligence and
implementing data sharing policies adhering to open standards; and
h. any other functions as maybe prescribed.
37. Restrictions on governmental use of certain AI applications

Deployment or use of any artificial intelligence system enabled with capability of
facial recognition technologies for mass surveillance, or enabled with data set
based predictive systems without rigorously examining ethical risks, or any other
high risk artificial intelligence system by any instrumentality owned, controlled,
managed, or financed by the Central Government or the State Governments, as the
case maybe, shall be prohibited.
CHAPTER - V
COMPULSORY CERTIFICATION OF ARTIFICIAL INTELLIGENCE SYSTEMS
38. Compulsory registration of Artificial intelligence systems

(1) Certain categories of artificial intelligence systems as notified by the central
government shall mandatorily be registered with the Authority before deployment
and in case such systems are deployed then within six months of such original date
of deployment.
(2) Only the artificial intelligence systems which meet the standards related to
transparency, privacy, security, fairness, and accountability prescribed under the
rules shall be entitled for registration under the Act subject to such other terms or
conditions as may be specified by the Authority or the Central Government.
(3) Registration shall follow procedures around timelines, fees, application format,
supporting documents and modifications as specified through regulations by the
Authority.
39. Certification requirements for Artificial intelligence systems
(1) Considering factors including safety impact, personal or societal exposure and
autonomous decision making capability, the Central Government shall provide
thresholds for identifying artificial intelligence systems requiring mandatory
certification by the Authority before being offered for commercial or industrial
utilization and shall notify and make rules for the said purpose.
(2) Institutions operating certified artificial intelligence systems shall adhere to
obligations outlined including detailed documentation, generating explainability of
decisions, enabling rights to redressal etc subject to reasonable constraints.
40. Application for registration of Artificial intelligence systems

(1) Any artificial intelligence system provider intending to deploy for public use any
artificial intelligence system shall submit application for registration to Authority
as per specified form and manner providing details around purpose, techniques
used, data types processed, intended benefits in the prescribed form and manner.
(2) Updated applications shall be filed for any significant modifications to architecture,
algorithms, or capabilities in the prescribed form and manner.
41. Grant of certificate of registration

(1) The Authority on examination of application can grant certificate of registration
subject to terms and conditions if system qualifies or meets prescribed standards.
(2) The Authority shall maintain a register of certificates issued under this Act using
both offline and online means to be used for any purpose under this Act.
(3) It can also refuse, revoke, or suspend registration after adequate opportunity is
provided of being heard to the applicant if standards are not fulfilled.
42. Certification guidelines for high risk Artificial intelligence systems

Specific requirements related to testability, human oversight, cyber security,
hardware reliability shall be laid down by the Central Government in the rules as
certifiable benchmarks for artificial intelligence systems requiring additional
oversight before permitting deployment.
43. Additional obligations for operators of certified high risk systems
Any person operating a certified high risk AI systems shall be subject to periodic
audits, re-certification requirements, transparency and accountability provisions as
specified by the Authority in regulations.
44. Audit of registered Artificial intelligence systems

(1) All artificial intelligence systems registered with the Authority shall undergo
mandatory half-yearly audits and risk-based assessments in manner prescribed
through methods including but not limited to:
a. techniques to assess algorithmic transparency, evaluate inherent biases in
data or model outputs affecting decisions;
b. testing procedures to reveal inaccuracies, inconsistencies and variance
against applicable technical benchmarks;
c. controlled trials to quantify reliability, safety hazards especially for
artificial intelligence enabled automation features;
d. simulated assessments on attack likelihood, potential for data or decision
manipulation attempts;
e. retrospective analysis to identify emergent biases and evaluate mistakes
repeating tendencies;
f. examinations of employed ethical design practices, documentation
traceability through process adherence checks.
(2) Outcomes from mandated assessments shall form key considerations during
renewals of registration or amendments if substantial gaps found through submitted
declarations call for additional surveillance or limitations.
45. Maintenance of records

Registered Artificial intelligence system providers shall maintain up-to-date
records regarding system design documentation, testing & audit reports,
operational milestones in centralized repository available for verification by the
officials of the Authority and the Central Government.
46. Modification or withdrawal of certificate of registration

(1) The certificate granting registration may be modified, suspended, or withdrawn by
the Authority after giving an opportunity to the applicant of making representations
against the proposed action.
(2) Orders to modify, suspend or prohibit use for significant deficiencies shall be
passed by the Authority where registered Artificial intelligence system poses
significant threat or harm similar to that of a high risk artificial intelligence system,
or the applicant fails to address issues notified within the prescribed time interval.
47. Appeals
Any orders passed or directions made by the Authority and other designated
certification institutions shall be appealable before the notified Appellate Tribunal
as per the provisions outlined.
CHAPTER - VI
ARTIFICIAL INTELLIGENCE DISPUTES SETTLEMENT AND APPELLATE

TRIBUNAL
48. Establishment of the Artificial Intelligence Dispute Settlement and Appellate

Tribunal.
The Central Government shall, by notification, establish an Appellate Tribunal to

be known as the Artificial Intelligence Disputes Settlement and Appellate Tribunal
to—
a) adjudicate any dispute—
i) between the Authority and a person;
ii) between the Authority and the opposite parties;
iii) between the Central Government and the opposite parties;
iv) or any other dispute arising from the provisions of this Act.
b) hear and dispose of appeal against any direction, decision or order of the
Authority under this Act.
49. Application of Settlement of Disputes and Appeal to the Appellate Tribunal.
(1) The Central Government or a State Government or a local authority or any person
may make an application to the Appellate Tribunal for adjudication of any dispute
arising under this Act.
(2) The Central Government or a State Government or a local authority or any person
aggrieved by any direction, decision or order made by the Authority may prefer an
appeal to the Appellate Tribunal.
(3) Every appeal under sub-section (2) shall be preferred within a period of thirty days
from the date on which a copy of the direction or order or decision made by the
Authority is received by the Central Government or the State Government or the
local authority or the aggrieved person and it shall be in such form, verified in such
manner and be accompanied by such fee as may be prescribed:
Provided that the Appellate Tribunal may entertain any appeal after the expiry of
the said period of thirty days if it is satisfied that there was sufficient cause for not
filing it within that period.
(4) On receipt of an application under sub-section (1) or an appeal under sub-section
(2), the Appellate Tribunal may, after giving the parties to the dispute or the appeal
an opportunity of being heard, pass such orders thereon as it thinks fit.
(5) The Appellate Tribunal shall send a copy of every order made by it to the parties to
the dispute or the appeal and to the Authority, as the case may be.
(6) The application made under sub-section (1) or the appeal preferred under sub-
section (2) shall be dealt with by it as expeditiously as possible and endeavour shall
be made by it to dispose of the application or appeal finally within ninety days
from the date of receipt of application or appeal, as the case may be: Provided that
where any such application or appeal could not be disposed of within the said
period of ninety days, the Appellate Tribunal shall record its reasons in writing for
not disposing of the application or appeal within that period.
(7) The Appellate Tribunal may, for the purpose of examining the legality or propriety
or correctness, of any dispute made in any application under sub-section (1), or of
any direction or order or decision of the Authority referred to in the appeal
preferred under sub-section (2), on its own motion or otherwise, call for the records
relevant to deposing of such application or appeal and make such orders as it thinks
fit.
50. Composition of the Appellate Tribunal.
(1) The Appellate Tribunal shall consist of a Chairperson and such Members to be
appointed, by notification, by the Central Government.
(2) The selection of Chairperson and Members of the Appellate Tribunal shall be made
by the Central Government in consultation with the Chief Justice of India.
(3) Subject to the provisions of this Act,—
a. the jurisdiction of the Appellate Tribunal may be exercised by the Benches
thereof;
b. a Bench may be constituted by the Chairperson of the Appellate Tribunal with
one or two Members of such Tribunal as the Chairperson may deem fit;
c. the Benches of the Appellate Tribunal shall ordinarily sit at New Delhi and at
such other places as the Central Government may, in consultation with the
Chairperson of the Appellate Tribunal, notify;
d. the Central Government shall notify the areas in relation to which each Bench of
the Appellate Tribunal may exercise its jurisdiction.
(4) Notwithstanding anything contained in sub-section (2), the Chairperson of the
Appellate Tribunal may transfer a Member of such Tribunal from one Bench to
another Bench.
(5) If at any stage of the hearing of any case or matter it appears to the Chairperson or
a Member of the Appellate Tribunal that the case or matter is of such a nature that
it ought to be heard by a Bench consisting of two Members, the case or matter may
be transferred by the Chairperson to such Bench as the Chairperson may deem fit.
51. Qualifications for appointment of Chairperson and Members.
A person shall not be qualified for appointment as the Chairperson or a Member of

the Appellate Tribunal unless he—
(a) in the case of Chairperson, is, or has been, a Judge of the Supreme Court or
the Chief Justice of a High Court;
(b) in the case of a Member, has held the post of Secretary to the Government
of India or any equivalent post in the Central Government or the State
Government for a period of not less than two years or a person who is well
versed in the field of information technology, computer applications,
computer systems, artificial intelligence systems, artificial intelligence
techniques, artificially intelligent machines, information technology, cyber-
physical systems, data privacy, law, social science, national security, or
public policy.
52. Term of office.
The Chairperson and every other Member of the Appellate Tribunal shall hold
office as such for a term not exceeding three years from the date on which he
enters upon his office: Provided that no Chairperson or other Member shall hold
office as such after he has attained,—
(a) in the case of Chairperson, the age of seventy years;
(b) in the case of any other Member, the age of sixty-five years.
53. Vacancies.
If, for reason other than temporary absence, any vacancy occurs in the office of the
Chairperson or a Member of the Appellate Tribunal, the Central Government shall
appoint another person in accordance with the provisions of this Act to fill the
vacancy and the proceedings may be continued before the Appellate Tribunal from
the stage at which the vacancy is filled.
54. Removal and resignation.
(1) The Central Government may remove from office, the Chairperson, or any Member
of the Appellate Tribunal, who—
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of the Central
Government, involves moral turpitude; or
(c) has become physically or mentally incapable of acting as the Chairperson
or a Member; or
(d) has acquired such financial or other interest as is likely to affect
prejudicially his functions as the Chairperson or a Member; or
(e) has so abused his position as to render his continuance in office prejudicial
to the public interest.
(2) Notwithstanding anything contained in sub-section (1), the Chairperson or a
Member of the Appellate Tribunal shall not be removed from his office on the
ground specified in clause (d) or clause (e) of that sub-section unless the Supreme
Court on a reference being made to it in this behalf by the Central Government,
has, on an enquiry, held by it in accordance with such procedure as it may specify
in this behalf, reported that the Chairperson or a Member ought on such ground or
grounds to be removed.
(3) The Central Government may suspend from office, the Chairperson, or a Member
of the Appellate Tribunal in respect of whom a reference has been made to the
Supreme Court under sub-section (2), until the Central Government has passed an
order on receipt of the report of the Supreme Court on such reference.
55. Staff of Appellate Tribunal.
(1) The Central Government shall provide the Appellate Tribunal with such officers
and employees as it may deem fit.
(2) The officers and employees of the Appellate Tribunal shall discharge their
functions under the general superintendence of its Chairperson.
(3) The salaries and allowances and other conditions of service of such officers and
employees of the Appellate Tribunal shall be such as may be prescribed.
56. Distribution of business amongst Benches.
Where Benches are constituted, the Chairperson of the Appellate Tribunal may,
from time to time, by notification, make provisions as to the distribution of the
business of the Appellate Tribunal amongst the Benches and also provide for the
matters which may be dealt with by each Bench.
57. Power of Chairperson to transfer cases.
On the application of any of the parties and after notice to the parties, and after
hearing such of them as he may desire to be heard, or on his own motion without
such notice, the Chairperson of the Appellate Tribunal may transfer any case
pending before one Bench, for disposal, to any other Bench.
58. Decision to be by majority.
If the Members of a Bench consisting of two Members differ in opinion on any

point, they shall state the point or points on which they differ, and make a reference
to the Chairperson of the Appellate Tribunal who shall hear the point or points
himself and such point or points shall be decided according to the opinion of the
majority who have heard the case, including those who first heard it.
59. Members, etc., to be public servants.
The Chairperson, Members and other officers and employees of the Appellate
Tribunal shall be deemed to be public servants within the meaning of section 21 of
the Bharatiya Nyay Sanhita.
60. Civil Courts not to have jurisdiction.
No civil court shall have jurisdiction to entertain any suit or proceeding in respect
of any matter which the Appellate Tribunal is empowered by or under this Act to
determine and no injunction shall be granted by any court or other authority in
respect of any action taken or to be taken in pursuance of any power conferred by
or under this Act.
61. Procedure and powers of Appellate Tribunal.
(1) The Appellate Tribunal shall not be bound by the procedure laid down by the Code
of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of
natural justice and, subject to the other provisions of this Act, the Appellate
Tribunal shall have powers to regulate its own procedure.
(2) The Appellate Tribunal shall have, for the purposes of discharging its functions
under this Act, the same powers as are vested in a civil court under the Code of
Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following
matters, namely:—
(a) summoning and enforcing the attendance of any person and examining
him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) subject to the provisions of Bharatiya Sakshya Sanhita, 2023
requisitioning any public record or document or a copy of such record or
document, from any office;
(e) issuing commissions for the examination of witnesses or documents;
(f) reviewing its decisions;
(g) dismissing an application for default or deciding it, ex parte;
(h) setting aside any order of dismissal of any application for default or any
order passed by it, ex parte; and
(i) any other matter which may be prescribed.
(3) Every proceeding before the Appellate Tribunal shall be deemed to be a judicial
proceeding for the purposes of the Bharatiya Nyay Sanhita, 2023 and the Appellate
Tribunal shall be deemed to be a civil court for the purposes of section 195 and
Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).
62. Right to legal representation.
The applicant or appellant may either appear in person or authorise one or more
legal practitioners to present his or its case before the Appellate Tribunal.
Explanation.—For the purposes of this section, “legal practitioner” means an
advocate, vakil or an attorney of any High Court, and includes a pleader in practice.
63. Appeal to Supreme Court.
(1) Notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of

1908) or in any other law, an appeal shall lie against any order, not being an
interlocutory order, of the Appellate Tribunal to the Supreme Court on one or more
of the grounds specified in section 100 of that Code.
(2) No appeal shall lie against any decision or order made by the Appellate Tribunal
with the consent of the parties provided that the consent of all the parties shall be
free.
(3) Every appeal under this section shall be preferred within a period of ninety days
from the date of the decision or order appealed against:
Provided that the Supreme Court may entertain the appeal after the expiry of the
said period of ninety days, if it is satisfied that the appellant was prevented by
sufficient cause from preferring the appeal in time.
Explanation.– Consent is said to be free when it is not caused by coercion, undue
influence, fraud, misrepresentation, or mistake of fact. Consent is said to be so
caused when it would not have been given but for the existence of such coercion,
undue influence, fraud, misrepresentation, or mistake.
64. Orders passed by Appellate Tribunal to be executable as a decree.
(1) An order passed by the Appellate Tribunal under this Act shall be executable by
the Appellate Tribunal as a decree of civil court, and for this purpose, the Appellate
Tribunal shall have all the powers of a civil court.
(2) Notwithstanding anything contained in sub-section (1), the Appellate Tribunal may
transmit any order made by it to a civil court having local jurisdiction and such
civil court shall execute the order as if it were a decree made by that court.
CHAPTER - VII
OFFENCES AND PENALTIES
65. Penalty for violation of Act, rules, and regulations and orders / directions issued
thereunder
Whoever fails to comply with or contravenes provisions of the Act, rules or
regulations made thereunder, or any orders or directions made under the Act, rules,
or regulations, shall be punishable with fine not exceeding ten lakh Indian rupees
and with fine not exceeding one crore rupees in case of subsequent contraventions.
66. Penalty for violating terms and conditions of registration or certification

Whoever fails to comply with or contravenes stipulated transparency requirements,
safety standards or other conditions subject to which registration or certification is
granted under this Act shall be punishable with fine not more than twenty-five lakh
Indian rupees, and in case of subsequent contravention not more than two crore
rupees along with suspension of such registration or certification.
67. Penalty for failure to furnish information, returns or statements

If an entity fails to furnish necessary information, periodical returns, statements or
reports required to be furnished to the Authority under this Act shall be punishable
with fine not exceeding five lakh Indian rupees, and with fine not exceeding fifty
lakhs on subsequent contravention.
68. General provision regarding penalties

The Authority, while determining penalties, shall consider severity, duration, and
scope of norm violated, risk posed to rights and adequate provisions for grievance
redress as aggravating or mitigating factors.
69. Cognizance of offences
(1) No court shall take cognizance of any offence punishable under this Act or the
rules or regulations made thereunder, save on a complaint made by the Authority.
(2) No court inferior to that of a Chief Metropolitan Magistrate or a Chief Judicial
Magistrate of first class shall try any offence punishable under this Act.
(3) No civil court shall have jurisdiction in respect of any matter which the Authority
is empowered by or under this Act to determine.
70. Offences by companies and government departments
(1) Where an offence under this Act has been committed by a company, every person
who at the time the offence was committed was in charge of, and was responsible
to, the company for the conduct of the business of the company, as well as the
company, shall be deemed to be guilty of the offence 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 any punishment provided in this Act if he proves that the offence was
committed without his knowledge or that he has exercised all due diligence to
prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this
Act has been committed by a company and it is proved that the offence has been
committed 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 other officer shall also be deemed to be guilty of the
offence and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section,—
a. “company” means any body corporate and includes a firm or other
association of individuals; and
b. “director”, in relation to a firm, means a partner in the firm.
71. Offences by Government Departments.
(1) Where an offence under this Act has been committed by any Department of
Government, the Head of the Department shall be deemed to be guilty of the
offence and shall be liable to be proceeded against and punished accordingly unless
he proves that the offence was committed without his knowledge or that he
exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1) where an offence under this
Act has been committed by a Department of Government and it is proved that the
offence has been committed with the consent or connivance of, or is attributable to
any neglect on the part of, any officer, other than the Head of the Department, such
officer shall also be deemed to be guilty of that offence and shall be liable to be
proceeded against and punished accordingly.
72. Compounding of certain offences

Every offence this Act, except violation of provisions related to high risk artificial
intelligence systems shall be compoundable at the option of the Central
Government if the accused pays up to maximum fine stipulated prior to prosecution
or where the directions and orders of the Authority or the Central Government, as
the case maybe, are duly complied with by the accused after due payment of fine in
whole.
CHAPTER - VIII
MISCELLANEOUS
73. Grants by the Central Government

The Central Government shall, after due appropriation made by Parliament by law
in this behalf, make to the Authority provide grants and allocation of funds to the
Authority for-
a. meeting establishment costs and expenses towards discharge of regulatory
functions under this Act;
b. expenses incurred on sums of money as are required to pay salaries and
allowances payable to the Chairperson and the members and the
administrative expenses including the salaries, allowances, and pension
payable to or in respect of officers and other employees of the Authority;
c. expenses incurred on policies, programs, schemes, incentives, and
institutional mechanisms for strengthening indigenous research capabilities,
fostering technology innovation, facilitating advanced skills development in
artificial intelligence and its associated fields, and initiatives around
research, awareness, skill development, adoption and regulation of artificial
intelligence.
74. National Artificial Intelligence Regulation Fund
(1) The Authority shall constitute a fund to be called as the National Artificial
Intelligence Regulation Fund and there shall be credited thereto—
a. all grants, fees and charges received by the Authority under this Act; and
b. all sums received by the Authority from such other sources as may be
decided upon by the Central Government.
(2) The Fund shall be applied for meeting—
a. the salaries and allowances payable to the Chairperson and members and
the administrative expenses including the sala-ries, allowances and pension
payable to or in respect of officers and other employees of the Authority;
b. expenses incurred on various policies, programs, schemes, incentives, and
institutional mechanisms for strengthening indigenous research capabilities,
fostering technology innovation, facilitating advanced skills development in
artificial intelligence and its associated fields, and initiatives around
research, awareness, skill development, adoption, and regulation of
artificial intelligence.
c. the expenses on objects and for purposes authorised by this Act.
75. Accounts and audit

Proper accounts and other relevant records shall be maintained and annual
statement of accounts will be prepared by National Authority in prescribed form. It
shall be audited by Comptroller & Auditor General of India.
76. Annual report

An annual report shall be prepared by National AI Authority giving detailed
account of its transaction of business, management of affairs, and execution of its
functions under this Act in a fiscal year which shall be laid before the Parliament.
77. Budget and Annual Financial Statement

Annual budget with details of expected receipts and proposed expenditure shall be
prepared by National Authority and after approval by Central Government shall be
placed before each house of the Parliament.
78. Power to raise finances

Authority shall have powers to raise finances through methods including levying
administrative charges for registration, compliance certificates, as well as
collecting fees for technical services offered to governmental agencies.
79. Protection of action taken in good faith
No suit, prosecution or other legal proceedings shall lie against the Central
Government or the Authority or any officer of Central Government or any member,
officer, or other employees of the Authority for anything which is in good faith
done or intended to be done under this Act or the rules or regulations made
thereunder.
80. Members and employees to be public servants

All members, officers and other employees of the Authority shall be deemed, when
acting or purporting to act in pursuance of any of the provisions of this Act to be
public servants for the purposes of any law for time being in force including, inter
alia, Bharatiya Nyay Sanhita, 2023 except laws pertaining to defence and national
security.
81. Exemption from tax

Notwithstanding anything contained in the Wealth Tax Act, 1957 (27 of 1957), the
Income-tax Act, 1961 (43 of 1961), or any other enactment for the time being in
force relating to tax on wealth, income, profits or gains, the Authority shall not be
liable to pay wealth-tax, income-tax or any other tax in respect of their wealth,
income, profits or gains derived.
82. Power of Central Government to issue directions
(1) The Central Government may, from time to time, issue to the Authority such
directions as it may think necessary in the interest of the sovereignty and integrity
of India, the security of the State, friendly relations with foreign States, public
order, decency, or morality.
(2) Without prejudice to the foregoing provisions, the Authority shall, in exercise of its
powers or the performance of its functions, be bound by such directions on
questions of policy as the Central Government may give in writing to it from time
to time:
Provided that the Authority shall, as far as practicable, be given an opportunity to
express its views before any direction is given under this sub-section.
(3) The decision of the Central Government whether a question is one of policy or not
shall be final.
83. Power to make rules
(1) The Central Government may, by notification, make rules for carrying out the
purposes 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 salary and allowances payable to and the other conditions of service of
the Chairperson and members; the allowance payable to the part-time
members; and the allowance payable to the part-time members under this
Act;
b. the powers and functions of the Chairperson under this Act;
c. the procedure for conducting an inquiry made; the salary and allowances
and other conditions of service of officers and other employees of the
Authority; and the salary and allowances and other conditions of service of
officers and other employees of the Authority under this Act;
d. the category of records, registers or other documents which are required to
be maintained; the form, the manner of its verification and the fee under
this Act;
e. the salary and allowances payable to and other terms and conditions of
service of the Chairperson and other Members of the Appellate Tribunal
under this Act;
f. the salary and allowances and other conditions of service of the officers and
employees of the Appellate Tribunal under this Act;
g. any other power of a civil court required to be prescribed under this Act;
h. the manner in which the accounts of the Authority shall be maintained
under this Act;
i. the time within which and the form and manner in which returns and report
are to be made to the Central Government under this Act;
j. any other matter which is to be, or may be, prescribed, or in respect of
which provision is to be made, by rules.
84. Rules and regulations to be laid before Parliament

Every rule and 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 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 rule or regulation or both Houses agree that the rule
or regulation should not be made, the rule or regulation 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 rule or regulation.
85. General power to remove 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 may appear to be
necessary for removing the difficulty:
Provided that no order shall be made under this section after the expiry of two
years from the date of 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.
86. Act to have overriding effect

The provisions under this Act and the rules and regulations made thereunder shall
have an overriding effect notwithstanding anything inconsistent in any other law
for the time being in force unless the context otherwise provides.

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AI Regulation Act 2024

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THE ARTIFICIAL INTELLIGENCE REGULATION ACT, 2024

[TEAM CODE – 51]

1ST NATIONAL DRAFTING FEST, 2024

ADR, DRAFTING & LITERARY SOCIETY

1. Short title, extent, commencement, and application..................................................... 7

3. Interpretation and Savings .......................................................................................... 13

NATIONAL ARTIFICIAL INTELLIGENCE REGULATION AUTHORITY OF INDIA

4. Establishment of the National Artificial Intelligence Regulation Authority .............. 13

5. Composition and Qualifications of Chairperson and Members ................................. 14

6. Appointment, method of recruitment, term of office, salaries, allowances, and other

7. Power to make procedural regulations for transaction of business ............................ 15

8. Procedure for meetings and transaction of business................................................... 15

9. Vacancies etc. not to invalidate proceedings .............................................................. 16

10. Officers and employees of the Authority ............................................................... 16

12. Functions of the Authority...................................................................................... 17

13. Complaint to the Authority ..................................................................................... 18

14. Investigation Wings and Appointment of Director General................................... 18

15. Power of Search and Seizure .................................................................................. 19

17. Power of the Authority to pass orders .................................................................... 19

18. Power of the Authority to issue directions and penalties ....................................... 19

19. Power of District Collector ..................................................................................... 20

20. Authentication of orders and decisions of the Authority........................................ 20

21. Delegation of powers .............................................................................................. 20

22. Territorial Jurisdiction of Authority ....................................................................... 20

24. Appeal to the Appellate Tribunal ........................................................................... 21

REGULATIONS FOR THE DEVELOPMENT OF ETHICAL AND FAIR ARTIFICIAL

25. Principles for ethical development and deployment of AI Systems....................... 21

26. General obligations of an Artificial Intelligence system provider ......................... 22

27. Obligations of Artificial Intelligence System Operators ........................................ 22

28. Half Yearly Assessment Report of Artificial Intelligence Systems to be submitted

31. Promotion of indigenous research and innovation in Artificial Intelligence ......... 24

NATIONAL ARTIFICIAL INTELLIGENCE POLICY, STRATEGY AND GOVERNMENT

33. Program for rapid integration of Artificial Intelligence in Government Operations25

34. Framework for procurement, development, testing, audit, integration, and

36. Obligation of Government Instrumentalities using Artificial Intelligence Systems27

37. Restrictions on governmental use of certain AI applications ................................. 28

COMPULSORY CERTIFICATION OF ARTIFICIAL INTELLIGENCE SYSTEMS

38. Compulsory registration of Artificial intelligence systems .................................... 28

39. Certification requirements for Artificial intelligence systems ............................... 29

40. Application for registration of Artificial intelligence systems ............................... 29

41. Grant of certificate of registration .......................................................................... 29

44. Audit of registered Artificial intelligence systems ................................................. 30

45. Maintenance of records .......................................................................................... 30

46. Modification or withdrawal of certificate of registration ....................................... 30

47. Appeals ................................................................................................................... 31

ARTIFICIAL INTELLIGENCE DISPUTES SETTLEMENT AND APPELLATE TRIBUNAL

48. Establishment of the Artificial Intelligence Dispute Settlement and Appellate

50. Composition of the Appellate Tribunal. ................................................................. 32

51. Qualifications for appointment of Chairperson and Members. .............................. 33

52. Term of office. ........................................................................................................ 34

53. Vacancies. ............................................................................................................... 34

54. Removal and resignation. ....................................................................................... 34

55. Staff of Appellate Tribunal. .................................................................................... 35

56. Distribution of business amongst Benches. ............................................................ 35

58. Decision to be by majority. .................................................................................... 35

59. Members, etc., to be public servants. ..................................................................... 35

60. Civil Courts not to have jurisdiction. ..................................................................... 36

61. Procedure and powers of Appellate Tribunal. ........................................................ 36

62. Right to legal representation. .................................................................................. 37

63. Appeal to Supreme Court. ...................................................................................... 37

64. Orders passed by Appellate Tribunal to be executable as a decree. ....................... 37

OFFENCES AND PENALTIES

67. Penalty for failure to furnish information, returns or statements ........................... 38

68. General provision regarding penalties .................................................................... 38