AIMS AND OBJECTIVES OF THE INFORMATION TECHNOLOGY ACT

Crime is both a social and economic phenomenon. It is as old as human society. Many
ancient books right from the pre-historic days, and mythological stories have spoken
about crimes committed by individuals be it against another individual like ordinary
theft and burglary, or the nation like spying, treason, etc. Kautilya’s Athashastra
written around 350 BC, is considered to be an authentic administrative treatise in
India, discusses the various crimes, security initiatives to be taken by the rulers,
possible crimes in a state, etc. And also advocates punishment for the list of some
advocated offences and the concept of restoration of loss to the victim has also been
discussed in it.

OBJECTIVES AND REASONS OF INFORMATION TECHNOLOGY ACT 2000:

The act was introduced before the Parliament with the following objects and reasons:

a) New communication systems and digital technology have made dramatic changes in the
way we live. A revolution is occurring in the way people transact business. Businesses and
consumers are increasingly using computers to create, transmit and store information instead
of traditional paper documents. Information stored in electronic form has many advantages.
It is cheaper, easier to store, retrieve and easier to communicate. But still, people are
reluctant to conduct business or conclude transactions online because of a lack of appropriate
legal measures.

The two principal hurdles which stand in the way of facilitating e-commerce and electronic
governance are requirements for writing and signature for legal recognition.

At present many legal provisions assume the existence of paper-based records and
documents and records which should bear signatures. The law of Evidence is traditionally
based on paper-based records and documents which should bear signatures. The law of
Evidence is traditionally based on paper-based records and oral testimony. Since electronic
commerce eliminates the need for paper-based transactions, therefore to facilitate e-
commerce, the need for legal changes has become an urgent necessity. International trade
through the medium of e-commerce is proliferating. IT act has been enacted to bring such
legal changes.

b) INTERNATIONAL RECOGNITION: The United Nations Commission Trade

Law(UNCITRAL) adopted the Model Law on Electronic Commerce in 1996. The General
Assembly by its resolution stated that States should give favorable consideration to the said
Model Law when they enact or revise their laws. The Model Law provides for equal legal
treatment of users of electronic and paper-based communication. Thus, to respond and to
give effect to the call of UN’s call to give favorable consideration to the Model Law the
enactment of the IT Act became crucial.

c) FACILITATION OF E-COMMERCE: There was a need to bring suitable

amendments to the existing laws of our country to facilitate e-commerce. It was
therefore proposed to provide for legal recognition of electronic records and digital
signatures. This would enable the conclusion of contracts & creation of rights and
obligations through electronic medium. It is also proposed to provide for a regulatory
regime to supervise the Certifying Authorities issuing digital signature certificates.
d) It is also proposed to create civil and criminal liability for contravention of
provisions of proposed legislation. The IT Act also criminalizes cybercrime and
hacking. It includes provisions for punishing offenses such as unauthorized access to
computer systems, hacking, and the spreading of computer viruses. The Act also
provides for the establishment of Cyber Appellate Tribunal, which has the power to
hear appeals against orders passed by Adjudicating Officers under the Act
e) FACILITATION OF E-GOVERNANCE: To provide e-governance it is proposed
to provide for use and acceptance of electronic records and digital signatures in
government offices and its agencies.
f) It is also proposed to make amendments in the IPC, Indian Evidence Act1872 to
provide changes in the provisions relating to documents and paper-based
transactions. It is also proposed to amend the RBI Act 1934 to facilitate electronic
funds transfer between financial institutions and banks.
THUS, The IT Act 2000 attempts to change outdated laws and provides ways to deal
with cyber- crimes.

HIGHLIGHTS OF THE IT ACT 2000

This Act aims to provide the legal infrastructure for e-commerce in India. And the cyber
laws have a major impact on e-businesses and the new economy in India. So, it is
important to understand various perspectives of the IT Act, of 2000 and what it offers.
The Information Technology Act, of 2000 also aims to provide for the legal framework so
that legal sanctity is accorded to all electronic records and other activities carried out by
electronic means. The Act states that unless otherwise agreed, an acceptance of the
contract may be expressed by electronic means of communication and the same shall have
legal validity and enforceability. Some highlights of the Act are listed below:

Chapter-II of the Act specifically stipulates that any subscriber may authenticate an
electronic record by affixing his digital signature. It further states that any person can
verify an electronic record by use of a public key of the subscriber.

Chapter III of the Act details Electronic Governance and provides inter alia amongst
others that where any law provides that information or any other matter shall be in writing
or in the typewritten or printed form, then, notwithstanding anything contained in such
law, such requirement shall be deemed to have been satisfied if such information or
matter is -
rendered or made available in an electronic form; and accessible to be usable for a
subsequent reference.
Chapter IV of the said Act gives a scheme for the Regulation of Certifying Authorities.
The Act envisages a Controller of Certifying Authorities who shall perform the function
of supervising the activities of the Certifying Authorities as also laying down standards
and conditions governing the Certifying Authorities as also specifying the various forms
and content of Digital Signature Certificates. The Act recognizes the need for
recognizing foreign Certifying Authorities and it further details the various provisions
for the issue of license to issue Digital Signature Certificates.

Chapter-VII of the Act details about the scheme of things relating to Digital Signature
Certificates. The duties of subscribers are also enshrined in the said Act.

Chapter-IX of the said Act talks about penalties and adjudication for various offences.
The penalties for damage to computer, computer systems etc. has been fixed as damages
by way of compensation not exceeding Rs. 1,00,00,000 to affected persons. The Act
talks of appointment of any officers not below the rank of a Director to the Government
of India or an equivalent officer of state government as an Adjudicating Officer who
shall adjudicate whether any person has made a contravention of any of the provisions of
the said Act or rules framed there under. The said Adjudicating Officer has been given
the powers of a Civil Court.

Chapter-X of the Act talks of the establishment of the Cyber Regulations Appellate
Tribunal, which shall be an appellate body where appeals against the orders passed by
the Adjudicating Officers, shall be preferred.

Chapter-XI of the Act talks about various offences and the said offences shall be
investigated only by a Police Officer not below the rank of the Deputy Superintendent of
Police. These offences include tampering with computer source documents, publishing of
information, which is obscene in electronic form, and hacking.

The Act also provides for the constitution of the Cyber Regulations Advisory Committee,
which shall advise the government as regards any rules, or for any other purpose
connected with the said act. The said Act also proposes to amend the Indian Penal Code,
1860, the Indian Evidence Act, 1872, The Bankers' Books Evidence Act, 1891, The
Reserve Bank of India Act, 1934 to make them in tune with the provisions of the IT Act.

NON APPLICABILITY TO THE FOLLOWING ACTS :

Section 1(4) of the Act provides that the provisions of the Act will apply to the
following:

a) Negotiable Instruments as defined under Section 13 of Negotiable Instruments Act

1881

b) Power of Attorney as defined under Section 1A of Power of Attorney Act 1882

c)Trust as defined under Section 3 of Indian Trusts Act 1882

d) Will as defined under clause (h) of Section 2 of Indian Succession Act 1925.

e) Any contract for sale of immovable property.

Hacking has been properly defined in Section 66 as, "Whoever with the intent to cause or
knowing that he is likely to cause wrongful loss or damage to the public or any person
destroys or deletes or alters any information residing in a computer resource or
diminishes its value or utility or affects it injuriously by any means, commits hacking."
Further for the first time, punishment for hacking as a cyber crime prescribed in the form
of imprisonment upto 3 years or with fine which may extend to Rs. 2,00,000/- or with
both. This is a welcome measure as hacking has assumed tremendous importance in the
present day scenario. On previous occasions, the web sites of the Government have been
hacked into but no legal provision within the existing legislation could be invoked to
cover "hacking" as a cyber crime. It shall now be possible to try and punish hackers
under section 66 of the IT Act,2000.

The said Act also provides for the constitution of the Cyber Regulations Advisory
Committee which shall advice the government as regards any rules or for any other
purpose connected with the said act. The said Act also has four Schedules which amend
the Indian Penal Code, 1860, the Indian Evidence Act, 1872, The Bankers' Books
Evidence Act, 1891, The Reserve Bank of India Act, 1934 to make them in tune with the
provisions of the IT Act.

Looking from an overall perspective, the Information Technology Act,2000 is a laudable

effort by the Government to create the necessary legal infrastructure for promotion and
growth of electronic commerce. As on date, the judiciary in India is reluctant to accept
electronic records and communications as evidence. Even email has not been defined in
the prevailing statutes of India and is not an accepted legal form of communication as
evidence in a court of law as of today. The said IT Act,2000 indeed is a step forward in
that direction also.

OBJECTS AND REASONS OF IT (AMENDMENT)ACT 2008 –

The Act underwent massive amendments in 2008 with the following objects and
reasons:
The Information Technology Act was enacted in the year 2000 with a view to give a
fillip to the growth of electronic-based transactions, to provide legal recognition for e-
commerce and e-transactions, to facilitate e-governance, to prevent computer based
crimes and ensure security practices and procedures in the context of widest possible
use of information technology worldwide.

2. With proliferation of information technology enabled services such as e-

governance, e-commerce and e-transactions, protection of personal data and
information and implementation of security practices and procedures relating to these
applications of electronic communications have assumed greater importance and they
require harmonisation with the provisions of the Information Technology Act.
Further, protection of Critical Information Infrastructure is pivotal to national
security, economy, public health and safety, so it has become necessary to declare
such infrastructure as a protected system so as to restrict its access.

3. A rapid increase in the use of computer and internet has given rise to new forms of
crimes like publishing sexually explicit materials in electronic form, video voyeurism
and breach of confidentiality and leakage of data by intermediary, e-commerce frauds
like personation commonly known as Phishing, identity theft and offensive messages
through communication services. So, penal provisions are required to be included in
the Information Technology Act, the Indian Penal Code, the Indian Evidence Act and
the Code of Criminal Procedure to prevent such crimes.

4. The United Nations Commission on International Trade Law (UNCITRAL) in the

year 2001 adopted the Model Law on Electronic Signatures. The General Assembly
of the United Nations by its resolution No. 56/80, dated 12th December, 2001,
recommended that all States accord favourable consideration to the said Model Law
on Electronic Signatures. Since the digital signatures are linked to a specific
technology under the existing provisions of the Information Technology Act, it has
become necessary to provide for alternate technology of electronic signatures for
bringing harmonisation with the said Model Law.

5. The service providers may be authorised by the Central Government or the State
Government to set up, maintain and upgrade the computerised facilities and also
collect, retain and appropriate service charges for providing such services at such
scale as may be specified by the Central Government or the State Government.

THE INFORMATION TECHNOLOGY (AMENDMENT)ACT 2008 AT

A GLANCE :

1) The Act has introduced provisions relating to electronic signatures along with
digital signatures to make the Act more technology-neutral.

2)The Act has introduced some new definitions like communication device, cyber
cafe etc. Communication devices to mean cell phones, personal digital assistance or a
combination of both or any other device to communicate, transmit or send
audio/text/video or image.Cyber Café as any facility from where the access to the
internet is offered to any person in the ordinary course of business to the members of
public.

3)The Act has also inserted provisions relating to intermediaries. ‘Intermediary’

concerning particular electronic records means any person who on behalf of other
person receives, stores or transmits that record or provides any service to that record
and includes telecom service providers, network service providers, web
hosting ,search engines, online auction sites, cyber cafes etc.

4) A new Section 10-A has been inserted to protect sensitive personal data or
information,dealt,possessed or handled by a body corporate in a computer resource
which such body corporate owns,controls or operates.If such body corporate is
negligent in implementing and maintaining and implementing reasonable security
practices and causes wrongful loss or wrongful gain to any person,it shall be liable to
pay damages.

5)A host of new sections have been added to Section 66 as Section 66A-66F
prescribing punishment for offences such as obscene electronic message
transmissions, identity theft,cheating,cyber terrorism etc.

6) Section 67 of the Act is amended to reduce the term of imprisonment for

publishing or transmitting obscene material in electronic form from 5 to 3 years and
increasing the fine from 1,00,000 to 5,00,000.A host of new sections have been
inserted 67A-67B inserting penal provisions with respect to offences relating to child
pornography in electronic form.

7) Section 69 A and Section 69 B have been added to grant power to State issue
directions for blocking for public access of any information to prevent cyber
terrorism.
8)Section 79 has been modified to the effect that intermediary shall not be liable for
any third party information,data or communication link made or hosted by it if
a) The function of intermediary is limited to providing access to a communication
system where information is made available by third parties.

b) The intermediary does not select or modify the information in the transmission.

c) The intermediary observes due diligence while discharging his duties.

SALIENT FEATURES OF THE ACT (ADVANTAGES)

 Protection of Personal Information
One of the key advantages of cyber laws in India is the protection of personal
information. With the proliferation of digital platforms, the threat to privacy has
become more pronounced. Cyber laws enforce strict regulations on organizations and
individuals handling personal data, ensuring its confidentiality, integrity, and
availability. Even with the coming of the Data Protection Act, the roots of the IT Act
have become stronger.
 Prevention of Cybercrimes
Cyber laws play a crucial role in preventing and combating cybercrimes. They
establish provisions and penalties for various forms of digital offences, including
hacking, identity theft, online fraud, cyberbullying, and harassment. By criminalising
such activities, cyber laws act as a deterrent, dissuading potential offenders from
engaging in unlawful behaviour.

The advantages of cyber laws are evident in the reduction of cybercrimes, as law
enforcement agencies can effectively investigate and prosecute offenders based on the
legal frameworks provided. These laws ensure that individuals and businesses can
operate in a secure online environment, fostering trust, and promoting a vibrant digital
economy.
For instance, in case of misuse of Digital Signature-Section 66C. Dishonest use of
somebody else‘s digital signature has been made punishable by 3 years with a fine.
Further, in case of violation of privacy, section 66E provides for punishment which
may extend to 3 yrs or a fine not exceeding 2 lakhs or both.
 Facilitation of E-commerce:
Cyber laws in India provide a supportive environment for e-commerce transactions.
They establish legal frameworks for electronic contracts, digital signatures, and
electronic payment systems. These laws help build trust among buyers and sellers, as
they ensure the enforceability of electronic transactions and the validity of digital
signatures.
By providing legal recognition to electronic commerce, cyber laws enable businesses
to leverage the benefits of the digital marketplace, expanding their reach and
contributing to economic growth. The advantages of cyber laws are evident in the
increased convenience and accessibility of online transactions, facilitating seamless
trade across the country and globally.
 Safeguarding Intellectual Property
Intellectual property protection is a critical aspect of cyber laws in India. These laws
address copyright infringement, software piracy, and digital content protection issues.
By safeguarding intellectual property rights, cyber laws incentivize creativity,
innovation, and technological advancements.
The advantages of cyber laws in India can be seen through the promotion of a
conducive environment for artists, authors, inventors, and businesses to protect their
creations and inventions in the digital space. By providing legal remedies against
intellectual property violations, cyber laws foster an atmosphere of respect for
creative endeavors and encourage investment in research and development.
 REGULATORY AUTHORITY:
One of the most significant implications of the IT Act is the establishment of the
Controller of Certifying Authorities (CCA). The CCA is responsible for issuing
digital certificates and maintaining the security of digital signatures. The Act also
introduced the concept of electronic signatures, which are legally binding and
equivalent to physical signatures.
 Awareness and Education
Cyber laws in India emphasize the significance of awareness and education regarding
cybersecurity and digital rights. These laws promote initiatives to educate individuals,
businesses, and government agencies about best practices, safe online behavior, and
legal obligations.
By fostering digital literacy, the advantages of cyber laws extend to the empowerment
of individuals to protect themselves from cyber threats, make informed decisions
online, and exercise their digital rights. Through awareness campaigns, training
programs, and public-private partnerships, cyber laws contribute to creating a digitally
literate society capable of navigating the complexities of the digital world.

Drawbacks of the INFORMATION TECHNOLOGY ACT 2000

(1)The said step has come a bit late. With the phenomenon growth of Internet which
doubles approximately every 100 days, the said Act should have been passed long time
back.
(2)It may be pertinent to mention that the said Act purports to be applicable to not only
the whole of India but also to any offence or contravention there under committed outside
of India by any person. This provisions in section 1(2) is not clearly and happily drafted.
It is not clear as to how and in what particular manner; the said Act shall apply to any
offence or contravention there under committed outside of India by any person. The
enforcement aspect of the IT Act is an area of grave concern. Numerous difficulties are
likely to arise in the enforcement of the said Act as the medium of Internet has shrunk the
size of the world and slowly, national boundaries shall cease to have much meaning in
Cyberspace.
(3)It is also strange that section 1(4) of the said Act excludes numerous things from the
applicability of the IT Act. The Act does not apply to (a) a negotiable instrument as
defined in section 13 of the Negotiable Instruments Act, 1881; (b) a power of attorney as
defined in section 1 A of the Powers-of-Attorney Act, 1882; (c) a trust as defined in
section 3 of the Indian Trusts Act, 1882; (d) a will as defined in clause (h) of section 2 of
the Indian Succession Act, 1925 including any other testamentary disposition by whatever
name called; (e) any contract for the sale or conveyance of immovable property or any
interest in such property. The said IT Act already excludes numerous important things.
The Act talks about promoting electronic commerce and it begins by excluding
immovable property from the ambit of electronic commerce- a reasoning which defies
logic!
(4)The IT Act, 2000 does not touch at all the issues relating to Domain Names. Even
Domain Names have not been defined and the rights and liabilities of Domain Name
owners do not find any mention in the said law. It may be submitted that Electronic
Commerce is based on the system of Domain Names and excluding such important issues
from the ambit of India's First Cyberlaw does not appeal to logic.
(5)The IT Act, 2000 does not also deal at all with the Intellectual Property Rights of
Domain Name owners. Contentious yet very important issues concerning Copyright,
Trademark and Patent have been left untouched in the said law thereby leaving many
loopholes in the said law.
(6)The IT Act talks about the use of electronic records and digital signatures in
government agencies. Yet, strangely it further says in section 9, that this does not confer
any right upon any person to insist that the document in questions should be accepted in
electronic form. The control of the Government is apparent, as the Controller of
Certifying Authorities has to discharge his functions subject to the general control and
direction of Central Government. The Internet and the phenomenon of electronic
commerce require that minimum hurdles and obstacles need to be put in their way. The
Act seeks to bureaucratize the entire process of controlling electronic commerce. This is
likely to result into consequences of delays and other related problems.
(7)As Cyberlaw is growing, so are the new forms and manifestations of cyber crimes. The
offences defines in the IT Act are by no means exhaustive. However, the drafting of the
relevant provisions of the IT Act make it appear as if the offences detailed in the said IT
Act are the only Cyber offences possible and existing. For example, cyber offences like
cybertheft, cyberstalking, cyber harassment and cyber defamation are not covered under
the Act.
(8)The IT Act talks of Adjudicating Officers who shall adjudicate whether any person has
committed a contravention of any provisions of this Act of any rules, regulations,
directions or order made there under. How these Adjudicating Officers will adjudicate the
contravention of the Act has not been made clear or well defined. Further, it has also not
been specified as to how the said Adjudicating Officers shall determine whether any
contravention of the Act or any offence has been committed by any person out side India.
Further, what authority would these Adjudicating Officers have viz-a-viz persons out side
India who have committed any cyber offences have not been defined. No definitive
procedure for adjudication by Adjudicating Officers has been exhaustively spelt out by
the IT Act. Further the territorial jurisdiction of the said Adjudicating Officers and also
the Cyber Regulations Appellate Tribunal has not been defined.
(9)Further, the said IT Act is likely to cause a conflict of jurisdiction.

Conclusion:
Overall, the IT Act has had a significant impact on the development of the digital economy in
India. It has provided a legal framework for electronic transactions and has helped to
establish trust in online communication and transactions. The Act has also helped to promote
cybersecurity and data protection, which are crucial for the growth of digital businesses.
However, there is also a need for continuous review and refinement of the Act in order to
ensure that it remains relevant and effective in addressing the challenges posed by the
constantly evolving digital landscape.