INFORMATION TECHNOLOGY ACT

BY
DILIP & GARIMA
BUSINESS LAW-2ND SEMESTER
 INTRODUCTION TO THE ACT
 Information technology is one of the important law relating to Indian
cyber laws.

 It had passed in Indian parliament in 2000.

 This act is helpful to promote business with the help of internet. It also
sets rules and regulations which apply on any electronic business
transaction.

 Due to increasing crime in cyber space, Govt. of India understood the

problems of internet user and for safeguarding the interest of internet
users, this act was made.
 HISTORY TO THE ACT
 The United Nations General Assembly by resolution A/RES/51/162, dated
the 30 January 1997 has adopted the Model Law on Electronic Commerce
adopted by the United Nations Commission on International Trade Law. This
is referred to as the UNCITRAL Model Law on E-Commerce.
 Following the UN Resolution India passed the Information Technology Act
2000 in May 2000 and notified it for effectiveness on October 17, 2000.
 The Information technology Act 2000 has been substantially amended
through the Information Technology Amendment Act 2008 which was
passed by the two houses of the Indian Parliament on December 23,and 24,
2008. It got the Presidential assent on February 5, 2009 and was notified
for effectiveness on October 27, 2009.
 A Complete history of how the current version of the Information
Technology Act -2008 version evolved over a period of time between 1998
to 2009 is available at the reference link given under external links below.'
 SALIENT FEATURES TO THE ACT
The salient features of the Information Technology Act, 2000 are as follows:—

(i) Extends to the whole of India (Section 1)

(ii) Authentication of electronic records (Section 3)
(iii) Legal Framework for affixing Digital signature by use of asymmetric crypto
system and hash function (Section 3)
(iv) Legal recognition of electronic records (Section 4)
(v) Legal recognition of digital signatures (Section 5)
(vi) Retention of electronic record (Section 7)
(vii)Publication of Official Gazette in electronic form (Section 8)
(viii) Security procedure for electronic records and digital signature
(Sections 14, 15, 16)
(ix) Licensing and Regulation of Certifying authorities for issuing digital signature
certificates (Sections 17-42)
(x) Functions of Controller (Section 18)
 Contd..
(xiii) Data Protection (Sections 43 & 66)
(xiv) Various types of computer crimes defined and stringent penalties
provided under the Act (Section 43 and Sections 66, 67, 72)
(xv) Appointment of Adjudicating officer for holding inquiries under the Act
(Sections 46 & 47)
(xix) Interception of information from computer to computer (Section 69)
(xxi) Act to apply for offences or contraventions committed outside India
(Section 75)
(xxii) Investigation of computer crimes to be investigated by officer at the DSP
(Deputy Superintendent of Police) level
(xxiii) Network service providers not to be liable in certain cases (Section 79)
(xxiv) Power of police officers and other officers to enter into any public place
and search and arrest without warrant (Section 80)
(xxv) Offences by the Companies (Section 85)
 Digital Revolution Internet Infra in INDIA
Internet INDIA Internet Infrastructure:2008.5
1Mil. Domains
(0.5 Mil. “.in”)

Bharti
BSNL NIC

130+ IDCs 134 Major Mail Servers

ISPs
ERNET

Reliance
TATA
Communications

4.8 Mil. High DNS

Speed Internet
Enterprise
IT /
65 Mil. Internet Govt. ITES
Users BPO
Home
248 Mil. Mobile Academia
Phones
8 Mil. Mobile Phones being added
per month `

Tele Density 24 per 1000 person

Targetted Broadband connection = 10 Mil. VOIP, IPTV
(2010) 6
 OBJECTIVES OF THE ACT
1.It is objective is to give legal recognition to any transaction which is done
by electronic way or use of internet.
2. To give legal recognition to digital signature for accepting any agreement
via computer.
3. To provide facility of filling document online relating to school admission
or registration in employment exchange.
4. According to I.T. Act 2000, any company can store their data in electronic
storage.
5. To stop computer crime and protect privacy of internet users.
6. To give legal recognition for keeping books of accounts by bankers and
other companies in electronic form.
7. To make more power to IPO, RBI and Indian Evidence act for restricting
electronic crime.
 PROVISIONS TO THE ACT
1. Chapter II -Any contract which is done by subscriber. If he signs the electronic
agreement by digital signature. Then it will be valid.
In case bank, the verification of digital signature can be on the basis of key pair.
2. Chapter III-This chapter explains the detail that all electronic records of govt. are
acceptable unless any other law has any rules regarding written or printed record.
3. Chapter IV-This chapter deals with receipts or acknowledgement of any electronic
record. Every electronic record has any proof that is called receipt and it should be in
the hand who records electronic way.
4. Chapter V -This chapter powers to organization for securing the electronic records
and secure digital signature. They can secure by applying any new verification system.
5. Chapter VI -This chapter states that govt. of India will appoint controller of certifying
authorities and he will control all activities of certifying authorities.
“Certifying authority is that authority who issues digital signature certificate.”
 6. Chapter VII- In this chapter powers and duties of certifying authority is given.
Certifying authority will issue digital signature certification after getting Rs. 25000. If it
is against public interest, then C.A. can suspend the digital signature certificate.
7. Chapter VIII-This chapter tells about the duties of subscribers regarding digital
signature certificate . It is the duty of subscriber to accept that all information in digital
signature certificate that is within his knowledge is true .
8. Chapter IX -If any body or group of body damages the computers , computer systems
and computer networks by electronic hacking , then they are responsible to pay penalty
upto Rs. 1 crore . Fore judgment this , govt. can appoint adjucating officer .
9. Chapter X -Under this chapter, cyber regulation appellate tribunal can be established.
It will solve the cases relating to orders of adjudicating officers.
10. Chapter XI -For controlling cyber Crime, Govt. can appoint cyber regulation advisory
committee who will check all cyber crime relating to publishing others information. If any
fault is done by anybody, he will be responsible for paying Rs. 2 lakhs or he can get
punishment of 3 years living in jail or both prison and penalty can be given to cyber
criminal.
11. Chapter XII-Police officers have also power to investigate dangerous cyber crime
under IPC 1860 , Indian Evidence Act 1872 and RBI Act 1934 .
 ADVANTAGES
1. Helpful to promote e-commerce
• Email is valid
• Digital signature is valid.
• Payment via credit card is valid.
• Online contract is valid
2. Enhance the corporate business
After issuing digital signature, certificate by Certifying authority, now Indian corporate
business can enhance.
3. Filling online forms :-
After providing facility, filling online forms for different purposes has become so easy.
4. High penalty for cyber crime
Law has power to penalize for doing any cyber crime. After making of this law, nos. of
cyber crime has reduced.
 CRITICISM TO THE ACT
 The amendment was passed in an eventful Parliamentary session on 23rd
of December 2008 with no discussion in the House.

 Some of the cyber law observers have criticized the amendments on the
ground of lack of legal and procedural safeguards to prevent violation of
civil liberties of Indians.

 There have also been appreciation about the amendments from many
observers because it addresses the issue of Cyber Security.

 Section 69 empowers the Central Government/State Government/ its

authorized agency to intercept, monitor or decrypt any information
generated, transmitted, received or stored in any computer resource.

 They can also secure assistance from computer personnel in decrypting

data (see mandatory decryption), under penalty of imprisonment.
 OFFENCES TO THE CYBER
 Tampering with computer source documents
 Hacking with Computer system
 Publishing of information which is obscene in electronic form
 Power of the Controller to give directions
 Directions of Controller to a subscriber to extend facilities to decrypt
information
 Protected system
 Penalty for misrepresentation
 Breach of confidentiality and privacy
 Penalty for publishing Digital Signature Certificate false in certain
particulars
 SCOPE OF THE ACT TO THE COUNTRY
Every electronic information is under the scope of I.T. Act 2000 but following
electronic transaction is not under I.T. Act 2000
1. Information technology act 2000 is not applicable on the attestation for
creating trust via electronic way. Physical attestation is must.
2. I.T. Act 2000 is not applicable on the attestation for making will of any
body. Physical attestation by two witnesses is must.
3. A contract of sale of any immovable property.
4. Attestation for giving power of attorney of property is not possible via
electronic record.
 CONCLUSION
India’s Information Technology Act, 2000 is comprehensive
legislation but contains many lacunae. The passage of the IT
Amendment Act 2008 will resolve many practical difficulties
faced in the implementation of the Act. The IT Amendment Bill
2008. Although it aims to bring significant changes in extant
cyber laws in India, introducing legal recognition to electronic
signatures, data protection obligations and mechanisms,
provisions to combat emerging cyber security threats such as
cyber terrorism, identity theft, spamming, video pornography
on internet, and other crimes. There may be still some lacunae
which will surface with passage of time .Hence, constant
amendments in the legal statutory framework will always be
essential.
THANK YOU