EXTRAORDINARY PART II — Section 1 PUBLISHED BY AUTHORITY

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS (Legislative Department)

New Delhi, the 9th June, 2000/Jyaistha 19, 1922 (Saka)

The following Act of Parliament received the assent of the President on the 9th June, 2000, and is hereby published for general information:—

THE INFORMATION TECHNOLOGY ACT, 2000

(No. 21 OF 2000)

[9th June, 2000]

An Act to provide legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication, commonly referred to as "electronic commerce", which involve the use of alternatives to paper-based methods of communication and storage of information, to facilitate electronic filing of documents with the Government agencies and further to amend the Indian Penal Code, the Indian Evidence Act, 1872, the Bankers' Books Evidence Act, 1891 and the Reserve Bank of India Act, 1934 and for matters connected therewith or incidental thereto.

WHEREAS the General Assembly of the United Nations by resolution A/RES/51/162, dated the 30th January, 1997 has adopted the Model Law on Electronic Commerce adopted by the United Nations Commission on International Trade Law;

AND WHEREAS the said resolution recommends inter alia that all States give favourable consideration to the said Model Law when they enact or revise their laws, in view of the need for uniformity of the law applicable to alternatives to paper-based methods of communication and storage of information;

AND WHEREAS it is considered necessary to give effect to the

said resolution and to promote efficient delivery of Government services

by means of reliable electronic records.

BE it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Information Technology Act, Short title, extent,

2000.

commencement

(2)

It shall extend to the whole of India and, save as otherwise and application. provided in this Act, it applies also to any offence or contravention thereunder committed outside India by any person.

(3)

It shall come into force on such date as the Central Government may, by notification, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision.

(4)

Nothing in this Act shall apply to,—

(a)

a negotiable instrument as defined in section 13 of 26 of 1881. the Negotiable Instruments Act, 1881;

(b)

a power-of-attorney as defined in section 1A of the 7 of 1882. Powers-of-Attorney Act, 1882;

(c)

a trust as defined in section 3 of the Indian Trusts 2 of 1882. Act, 1882;

(d)

a will as defined in clause (h) of section 2 of the Indian 39 of 1925. 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;

(f)

any such class of documents or transactions as may be notified by the Central Government in the Official Gazette.

(a)

"access" with its grammatical variations and cognate expressions means gaining entry into, instructing or communicating with the logical, arithmetical, or memory function resources of a computer, computer system or computer network;

(b)

"addressee" means a person who is intended by the originator to receive the electronic record but does not include any intermediary;

(c)

"adjudicating officer" means an adjudicating officer appointed under sub-section (1) of section 46;

(d)

"affixing digital signature" with its grammatical variations and cognate expressions means adoption of any methodology or procedure by a person for the purpose of authenticating an electronic record by means of digital signature;

(e)

"appropriate Government" means as respects any matter,—

(i)

enumerated in List II of the Seventh Schedule to the Constitution;

(ii)

relating to any State law enacted under List III of the Seventh Schedule to the Constitution,

Definitions 2. (1) In this Act, unless the context otherwise requires,— the State Government and in any other case, the Central Government;

(f)

"asymmetric crypto system" means a system of a secure key pair consisting of a private key for creating a digital signature and a public key to verify the digital signature;

(g)

"Certifying Authority" means a person who has been granted a licence to issue a Digital Signature Certificate under section 24;

(h)

"certification practice statement" means a statement issued by a Certifying Authority to specify the practices that the Certifying Authority employs in issuing Digital Signature Certificates;

(i)

"computer" means any electronic magnetic, optical or other high-speed data processing device or system which performs logical, arithmetic, and memory functions by manipulations of electronic, magnetic or optical impulses, and includes all input, output, processing, storage, computer software, or

communication facilities which are connected or related to the computer in a computer system or computer network;

(j)

"computer network" means the interconnection of one or more computers through—

(i)

the use of satellite, microwave, terrestrial line or other communication media; and

(ii)

terminals or a complex consisting of two or more interconnected computers whether or not the interconnection is continuously maintained;

(k)

"computer resource" means computer, computer system, computer network, data, computer data base or software;

(l)

"computer system" means a device or collection of devices, including input and output support devices and excluding calculators which are not programmable and capable of being used in conjunction with external files, which contain computer programmes, electronic instructions, input data and output data, that performs logic, arithmetic, data storage and retrieval, communication control and other functions;

(m)

"Controller" means the Controller of Certifying Authorities appointed under sub-section (1) of section 17;

(n)

"Cyber Appellate Tribunal" means the Cyber Regulations Appellate Tribunal established under subsection (1) of section 48;

(o)

"data" means a representation of information, knowledge, facts, concepts or instructions which are being prepared or have been prepared in a formalised manner, and is intended to be processed, is being processed or has been processed in a computer system or computer network, and may be in any form (including computer printouts magnetic or optical storage media, punched cards, punched tapes) or stored internally in the memory of the computer;

(p)

"digital signature" means authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3;

(q)

"Digital Signature Certificate" means a Digital Signature Certificate issued under sub-section (4) of section 35;

(r)

"electronic form" with reference to information means any information generated, sent, received or stored in media, magnetic, optical, computer memory, micro film, computer generated micro fiche or similar device;

(s)

"Electronic Gazette" means the Official Gazette published in the electronic form;

(t)

"electronic record" means data, record or data generated, image or sound stored, received or sent in an electronic form or micro film or computer generated micro fiche;

(u)

"function", in relation to a computer, includes logic, control, arithmetical process, deletion, storage and retrieval and communication or telecommunication from or within a computer;

(v)

"information" includes data, text, images, sound, voice, codes, computer programmes, software and data bases or micro film or computer generated micro fiche;

(w)

"intermediary" with respect to any particular electronic message means any person who on behalf of another person receives, stores or transmits that message or provides any service with respect to that message;

(x)

"key pair", in an asymmetric crypto system, means a private key and its mathematically related public key, which are so related that the public key can verify a digital signature created by the private key;

(y)

"law" includes any Act of Parliament or of a State Legislature, Ordinances promulgated by the President or a Governor, as the case may be, Regulations made by the President under article 240, Bills enacted as President's Act under sub-clause (a) of clause (1) of article 357 of the Constitution and includes rules, regulations, bye-laws and orders issued or made thereunder;

(z)

"licence" means a licence granted to a Certifying Authority under section 24;

(za) "originator" means a person who sends, generates, stores or transmits any electronic message or causes any electronic message to be sent, generated, stored or transmitted to any other person but does not include an intermediary;

(zb) "prescribed" means prescribed by rules made under this Act;

(zc) "private key" means the key of a key pair used to create a digital signature;

(zd) "public key" means the key of a key pair used to verify a digital signature and listed in the Digital Signature Certificate;

(ze) "secure system" means computer hardware, software, and procedure that—

(a)

are reasonably secure from unauthorised access and misuse;

(b)

provide a reasonable level of reliability and correct operation;

(c)

are reasonably suited to performing the intended functions; and

(d)

adhere to generally accepted security procedures;

(zf) "security procedure" means the security procedure prescribed under section 16 by the Central Government;

(zg) "subscriber" means a person in whose name the Digital Signature Certificate is issued;

(zh) "verify" in relation to a digital signature, electronic record or public key, with its grammatical variations and cognate expressions means to determine whether—

(a)

the initial electronic record was affixed with the digital signature by the use of private key corresponding to the public key of the subscriber;

(b)

the initial electronic record is retained intact or has been altered since such electronic record was so affixed with the digital signature.

(2) Any reference in this Act to any enactment or any provision thereof shall, in relation to an area in which such enactment or such provision is not in force, be construed as a reference to the corresponding law or the relevant provision of the corresponding law, if any, in force in that area.

CHAPTER II DIGITAL SIGNATURE

3. (1) Subject to the provisions of this section any subscriber may authenticate an electronic record by affixing his digital signature.

(2) The authentication of the electronic record shall be effected by the use of asymmetric crypto system and hash function which envelop and transform the initial electronic record into another electronic record.

Explanation—For the purposes of this sub-section, "hash function" means an algorithm mapping or translation of one sequence of bits into another, generally smaller, set known as "hash result" such that an electronic record yields the same hash result every time the algorithm is executed with the same electronic record as its input making it computationally infeasible—

(a)

to derive or reconstruct the original electronic record from the hash result produced by the algorithm;

(b)

that two electronic records can produce the same hash result using the algorithm.

(3)

Any person by the use of a public key of the subscriber can verify the electronic record.

(4)

The private key and the public key are unique to the subscriber and constitute a functioning key pair.

CHAPTER III ELECTRONIC GOVERNANCE

4. 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—

(a)

rendered or made available in an electronic form; and

(b)

accessible so as to be usable for a subsequent reference.

5. Where any law provides that information or any other matter shall be authenticated by affixing the signature or any document shall be signed or bear the signature of any person then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied, if such information or matter is authenticated by means of digital signature affixed in such manner as may be prescribed by the Central Government.

Authentication of electronic records.

Legal recognition of electronic records.

Legal recognition of digital signatures.

CHAPTER IV

ATTRIBUTION, ACKNOWLEDGMENT AND DESPATCH OF ELECTRONIC RECORDS

Attribution of 11. An electronic record shall be attributed to the originator— electronic

(a) if it was sent by the originator himself;

records.

(b)

by a person who had the authority to act on behalf of the originator in respect of that electronic record; or

(c)

by an information system programmed by or on behalf of the originator to operate automatically.

Acknowledgement 12. (1) Where the originator has not agreed with the addressee of receipt

that the acknowledgment of receipt of electronic record be given in a particular form or by a particular method, an acknowledgment may be given by—

(a)

any communication by the addressee, automated or otherwise; or

(b)

any conduct of the addressee, sufficient to indicate to the originator that the electronic record has been received.

(2)

Where the originator has stipulated that the electronic record shall be binding only on receipt of an acknowledgment of such electronic record by him, then unless acknowledgment has been so received, the electronic record shall be deemed to have been never sent by the originator.

(3)

Where the originator has not stipulated that the electronic record shall be binding only on receipt of such acknowledgment, and the acknowledgment has not been received by the originator within the time specified or agreed or, if no time has been specified or agreed to within a reasonable time, then the originator may give notice to the addressee stating that no acknowledgment has been received by him and specifying a reasonable time by which the acknowledgment must be received by him and if no acknowledgment is received within the aforesaid time limit he may after giving notice to the addressee, treat the electronic record as though it has never been sent.

Time and place 13. (1) Save as otherwise agreed to between the originator and the

of despatch and addressee, the despatch of an electronic record occurs when receipt of

it enters a computer resource outside the control of the

electronic record.

originator.

(m)

laying down the duties of the Certifying Authorities;

(n)

maintaining a data base containing the disclosure record of every Certifying Authority containing such particulars as may be specified by regulations, which shall be accessible to public.

19. (1) Subject to such conditions and restrictions as may be specified by regulations, the Controller may with the previous approval of the Central Government, and by notification in the Official Gazette, recognise any foreign Certifying Authority as a Certifying Authority for the purposes of this Act.

(2)

Where any Certifying Authority is recognised under subsection (1), the Digital Signature Certificate issued by such Certifying Authority shall be valid for the purposes of this Act.

(3)

The Controller may, if he is satisfied that any Certifying Authority has contravened any of the conditions and restrictions subject to which it was granted recognition under sub-section (1) he may, for reasons to be recorded in writing, by notification in the Official Gazette, revoke such recognition.

20. (1) The Controller shall be the repository of all Digital Signature Certificates issued under this Act.

(2) The Controller shall—

(a)

make use of hardware, software and procedures that are secure from intrusion and misuse;

(b)

observe such other standards as may be prescribed by the Central Government;

to ensure that the secrecy and security of the digital signatures are assured.

(3) The Controller shall maintain a computerised data base of all public keys in such a manner that such data base and the public keys are available to any member of the public.

21. (1) Subject to the provisions of sub-section (2), any person may make an application, to the Controller, for a licence to issue Digital Signature Certificates.

(2) No licence shall be issued under sub-section (1), unless the applicant fulfills such requirements with respect to qualification, expertise, manpower, financial resources and other infrastructure facilities, which are necessary to issue

Recognition of foreign Certifying Authorities.

Controller to act as repository.

Licence to issue Digital Signature Certificates.

Digital Signature Certificates as may be prescribed by the Central Government.

(3) A licence granted under this sections shall—

(a)

be valid for such period as may be prescribed by the Central Government;

(b)

not be transferable or heritable;

(c)

be subject to such terms and conditions as may be specified by the regulations.

Application for 22. (1) Every application for issue of a licence shall be in such licence. form as may be prescribed by the Central Government.

(2) Every application for issue of a licence shall be accompanied by—

(a)

a certification practice statement;

(b)

a statement including the procedures with respect to identification of the applicant;

(c)

payment of such fees, not exceeding twenty-five thousand rupees as may be prescribed by the Central Government;

(d)

such other documents, as may be prescribed by the Central Government.

Renewal of 23. An application for renewal of a licence shall be— licence.

(a)

in such form;

(b)

accompanied by such fees, not exceeding five thousand rupees,

as may be prescribed by the Central Government and shall be made not less than forty-five days before the date of expiry of the period of validity of the licence.

Procedure for 24. The Controller may, on receipt of an application under sub-section

grant or rejection (1) of section 21, after considering the documents accompanying of licence.

the application and such other factors, as he deems fit, grant the licence or reject the application:

Provided that no application shall be rejected under this section unless the applicant has been given a reasonable opportunity of presenting his case.

Suspension of 25. (1) The Controller may, if he is satisfied after making such licence.

inquiry, as he may think fit, that a Certifying Authority has,—

(a)

made a statement in, or in relation to, the application for the issue or renewal of the licence, which is incorrect or false in material particulars;

(b)

failed to comply with the terms and conditions subject to which the licence was granted;

(c)

failed to maintain the prodecures and standards specified in section 30.

(d)

contravened any provisions of this Act, rule, regulation or order made thereunder,

revoke the licence:

Provided that no licence shall be revoked unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed revocation.

(2) The Controller may, if he has reasonable cause to believe that there is any ground for revoking a licence under subsection (1), by order suspend such licence pending the completion of any inquiry ordered by him:

Provided that no licence shall be suspended for a period exceeding ten days unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed suspension.

(3) No Certifying Authority whose licence has been suspended shall issue any Digital Signature Certificate during such suspension.

26. (1) Where the licence of the Certifying Authority is suspended Notice of

or revoked, the Controller shall publish notice of such suspension or revocation of

suspension or revocation, as the case may be, in the data

licence.

base maintained by him.

(2) Where one or more repositories are specified, the Controller shall publish notices of such suspension or revocation, as the case may be, in all such repositories:

Provided that the data base containing the notice of such suspension or revocation, as the case may be, shall be made available through a web site which shall be accessible round the clock:

Provided further that the Controller may, if he considers necessary, publicise the contents of data base in such electronic or other media, as he may consider appropriate.

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

43 of 1961

28. (1) The Controller or any officer authorised by him in this behalf shall take up for investigation any contravention of the provisions of this Act, rules or regulations made thereunder.

(2) The Controller or any officer authorised by him in this behalf shall exercise the like powers which are conferred on Income-tax authorities under Chapter XIII of the Income-tax Act, 1961 and shall exercise such powers, subject to such limitations laid down under that Act.

29. (1) Without prejudice to the provisions of sub-section (1) of section 69, the Controller or any person authorised by him shall, if he has reasonable cause to suspect that any contravention of the provisions of this Act, rules or regulations made thereunder has been committed, have access to any computer system, any apparatus, data or any other material connected with such system, for the purpose of searching or causing a search to be made for obtaining any information or data contained in or available to such computer system.

(2) For the purposes of sub-section (1), the Controller or any person authorised by him may, by order, direct any person incharge of, or otherwise concerned with the operation of, the computer system, data apparatus or material, to provide him with such reasonable technical and other assistance as he may consider necessary.

30. Every Certifying Authority shall,—

(a)

make use of hardware, software and procedures that are secure from intrusion and misuse;

(b)

provide a reasonable level or reliability in its services which are reasonably suited to the performance of intended functions;

(c)

adhere to security procedures to ensure that the secrecy and privacy of the digital signatures are assured; and

(d)

observe such other standards as may be specified by regulations.

1. Every Certifying Authority shall ensure that every person employed or otherwise engaged by it complies, in the course of his employment or engagement, with the provisions of this Act, rules, regulations and orders made thereunder.
2. Every Certifying Authority shall display its licence at a conspicuous place of the premises in which it carries on its business.

Power to investigate contraventions.

Access to computers and data.

Certifying Authority to follow certain procedures.

Certifying Authority to ensure compliance of the Act, etc.

Display of licence.

(3)

A Digital Signature Certificate shall not be revoked unless the subscriber has been given an opportunity of being heard in the matter.

(4)

On revocation of a Digital Signature Certificate under this section, the Certifying Authority shall communicate the same to the subscriber.

Notice of 39. (1) Where a Digital Signature Certificate is suspended or suspension or revoked under section 37 or section 38, the Certifying revocation. Authority shall publish a notice of such suspension or

revocation, as the case may be, in the repository specified in the Digital Signature Certificate for publication of such notice.

(2) Where one or more repositories are specified, the Certifying Authority shall publish notices of such suspension or revocation, as the case may be, in all such repositories.

CHAPTER VIII

DUTIES OF SUBSCRIBERS

Generating key 40. Where any Digital Signature Certificate, the public key of which

pair. corresponds to the private key of that subscriber which is to be listed in the Digital Signature Certificate has been accepted by a subscriber, the subscriber shall generate that key pair by applying the security procedure.

Acceptance of 41. (1) A subscriber shall be deemed to have accepted a Digital

Digital Signature Signature Certificate if he publishes or authorises the Certificate.

publication of a Digital Signature Certificate—

(a)

to one or more persons;

(b)

in a repository, or

otherwise demonstrates his approval of the Digital Signature Certificate in any manner.

(2) By accepting a Digital Signature Certificate the subscriber certifies to all who reasonably rely on the information contained in the Digital Signature Certificate that—

(a)

the subscriber holds the private key corresponding to the public key listed in the Digital Signature Certificate and is entitled to hold the same;

(b)

all representations made by the subscriber to the Certifying Authority and all material relevant to the information contained in the Digital Signature Certificate are true;

(c)

all information in the Digital Signature Certificate

that is within the knowledge of the subscriber is true. Control of

42. (1) Every subscriber shall exercise reasonable care to retain

private key. control of the private key corresponding to the public key

listed in his Digital Signature Certificate and take all steps to prevent its disclosure.

(2) If the private key corresponding to the public key listed in the Digital Signature Certificate has been compromised, then, the subscriber shall communicate the same without any delay to the Certifying Authority in such manner as may be specified by the regulations.

Explanation.—For the removal of doubts, it is hereby declared

that the subscriber shall be liable till he has informed the Certifying

Authority that the private key has been compromised.

CHAPTER IX

PENALTIES AND ADJUDICATION

43. If any person without permission of the owner or any other person

Penalty for who is incharge of a computer, computer system or computer damage to

network,—

computer, computer system, (a) accesses or secures access to such computer, computer system ^etc. or computer network;

(b)

downloads, copies or extracts any data, computer data base or information from such computer, computer system or computer network including information or data held or stored in any removable storage medium;

(c)

introduces or causes to be introduced any computer contaminant or computer virus into any computer, computer system or computer network;

(d)

damages or causes to be damaged any computer, computer system or computer network, data, computer data base or any other programmes residing in such computer, computer system or computer network;

(e)

disrupts or causes disruption of any computer, computer system or computer network;

(f)

denies or causes the denial of access to any person authorised to access any computer, computer system or computer network by any means;

(g)

provides any assistance to any person to facilitate access to a computer, computer system or computer network in contravention of the provisions of this Act, rules or regulations made thereunder;

(h)

charges the services availed of by a person to the account of another person by tampering with or manipulating any computer, computer system, or computer network,

he shall be liable to pay damages by way of compensation not exceeding one crore rupees to the person so affected.

Explanation.—For the purposes of this section,—

(i)

"computer contaminant" means any set of computer instructions that are designed—

(a)

to modify, destroy, record, transmit data or programme residing within a computer, computer system or computer network; or

(b)

by any means to usurp the normal operation of the computer, computer system, or computer network;

(ii)

"computer data base" means a representation of information, knowledge, facts, concepts or instructions in text, image, audio, video that are being prepared or have been prepared in a formalised manner or have been produced by a computer, computer system or computer network and are intended for use in a computer, computer system or computer network;

(iii) "computer virus" means any computer instruction, information, data or programme that destroys, damages, degrades or adversely affects the performance of a computer resource or attaches itself to another computer resource and operates when a programme, data or instruction is executed or some other event takes place in that computer resource;

(iv) "damage" means to destroy, alter, delete, add, modify or rearrange any computer resource by any means.

44. If any person who is required under this Act or any rules or Penalty for

regulations made thereunder to— failure to furnish information

(a)

furnish any document, return or report to the Controller or return, etc. the Certifying Authority fails to furnish the same, he shall be liable to a penalty not exceeding one lakh and fifty thousand rupees for each such failure;

(b)

file any return or furnish any information, books or other documents within the time specified therefore in the regulations fails to file return or furnish the same within the time specified therefore in the regulations, he shall be liable to a penalty not exceeding five thousand rupees for every day during which such failure continues;

(c)

maintain books of account or records, fails to maintain the same, he shall be liable to a penalty not exceeding ten thousand rupees for every day during which the failure continues.

Residuary 45. Whoever contravenes any rules or regulations made under this penalty.

Act, for the contravention of which no penalty has been separately provided, shall be liable to pay a compensation not exceeding twenty-five thousand rupees to the person affected by such contravention or a penalty not exceeding twenty-five thousand rupees.

Power to 46. (1) For the purpose of adjudging under this Chapter whether adjudicate.

any person has committed a contravention of any of the provisions of this Act or of any rule, regulation, direction or order made thereunder the Central Government shall, subject to the provisions of sub-section (3), appoint any officer not below the rank of a Director to the Government of India or an equivalent officer of a State Government to be an adjudicating officer for holding an inquiry in the manner prescribed by the Central Government.

(2)

The adjudicating officer shall, after giving the person referred to in sub-section (1) a reasonable opportunity for making representation in the matter and if, on such inquiry, he is satisfied that the person has committed the contravention, he may impose such penalty or award such compensation as he thinks fit in accordance with the provisions of that section.

(3)

No person shall be appointed as an adjudicating officer unless he possesses such experience in the field of Information Technology and legal or judicial experience as may be prescribed by the Central Government.

(4)

Where more than one adjudicating officers are appointed, the Central Government shall specify by order the matters and places with respect to which such officers shall exercise their jurisdiction.

(5)

Every adjudicating officer shall have the powers of a civil court which are conferred on the Cyber Appellate Tribunal under sub-section (2) of section 58, and—

(a)

all proceedings before it shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code;

(b)

shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973.

Factors to be 47. While adjudging the quantum of compensation under this taken into

Chapter, the adjudicating officer shall have due regard to the

account by the

following factors, namely:—

adjudicating officer.

Establishment of Cyber Appellate Tribunal.

Composition of Cyber Appellate Tribunal.

(a)

the amount of gain of unfair advantage, wherever quantifiable, made as a result of the default;

(b)

the amount of loss caused to any person as a result of the default;

(c)

the repetitive nature of the default.

CHAPTER X THE CYBER REGULATIONS APPELLATE TRIBUNAL

48. (1) The Central Government shall, by notification, establish one or more appellate tribunals to be known as the Cyber Regulations Appellate Tribunal.

(2) The Central Government shall also specify, in the notification referred to in sub-section (1), the matters and places in relation to which the Cyber Appellate Tribunal may exercise jurisdiction.

1. A Cyber Appellate Tribunal shall consist of one person only (hereinafter referred to as the Presiding Officer of the Cyber Appellate Tribunal) to be appointed, by notification, by the Central Government.
1. A person shall not be qualified for appointment as the Presiding Officer of a Cyber Appellate Tribunal unless he—
1. is, or has been, or is qualified to be, a Judge of a High Court; or
2. is or has been a member of the Indian Legal Service and is holding or has held a post in Grade I of that Service for at least three years.
2. The Presiding Officer of a Cyber Appellate Tribunal shall hold office for a term of five years from the date on which he enters upon his office or until he attains the age of sixty-five years, whichever is earlier.
1. The salary and allowances payable to, and the other terms and conditions of service including pension, gratuity and other retirement benefits of, the Presiding Officer of a Cyber Appellate Tribunal shall be such as may be prescribed:
2. Provided that neither the salary and allowances nor the other terms and conditions of service of the Presiding Officer shall be varied to his disadvantage after appointment.
3. If, for reason other than temporary absence, any vacancy occurs in the office of the Presiding Officer of a Cyber Appellate Tribunal, then the Central Government shall appoint another person in

Qualifications for appointment as Presiding Officer of the Cyber Appellate Tribunal.

Term of office.

Salary, allowances and other terms and conditions of service of Presiding Officer.

Filling up of vacancies.

accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Cyber Appellate Tribunal from the stage at which the vacancy is filled.

54. (1) The Presiding Officer of a Cyber Appellate Tribunal may, by notice in writing under his hand addressed to the Central Government, resign his office:

Provided that the said Presiding Officer shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.

(2)

The Presiding Officer of a Cyber Appellate Tribunal shall not be removed from his office except by an order by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court in which the Presiding Officer concerned has been informed of the charges against him and given a reasonable opportunity of being heard in respect of these charges.

(3)

The Central Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of the aforesaid Presiding Officer.

1. No order of the Central Government appointing any person as the Presiding Officer of a Cyber Appellate Tribunal shall be called in question in any manner and no act or proceeding before a Cyber Appellate Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution of a Cyber Appellate Tribunal.
1. (1) The Central Government shall provide the Cyber Appellate Tribunal with such officers and employees as that Government may think fit.
1. The officers and employees of the Cyber Appellate Tribunal shall discharge their functions under general superintendence of the Presiding Officer.
2. The salaries, allowances and other conditions of service of the officers and employees of the Cyber Appellate Tribunal shall be such as may be prescribed by the Central Government.

Appeal to Cyber 57. (1) Save as provided in sub-section (2), any person aggrieved Appellate

by an order made by Controller or an adjudicating officer

Tribunal.

Resignation and removal.

Orders constituting Appellate Tribunal to be final and not to invalidate its proceedings.

Staff of the Cyber Appellate Tribunal.

(b)

requiring the discovery and production of documents or other electronic records;

(c)

receiving evidence on affidavits;

(d)

issuing commissions for the examination of witnesses or documents;

(e)

reviewing its decisions;

(f)

dismissing an application for default or deciding it ex parte;

(g)

any other matter which may be prescribed.

(3) Every proceeding before the Cyber Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196 45 of 1860 of the Indian Penal Code and the Cyber 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

Right to legal 59. The appellant may either appear in person or authorise one or representation.

more legal practitioners or any of its officers to present his or its case before the Cyber Appellate Tribunal.

36 of 1963 60. The provisions of the Limitation Act, 1963, shall, as far as may Limitation. be, apply to an appeal made to the Cyber Appellate Tribunal.

1. No court shall have jurisdiction to entertain any suit or proceeding Civil court not to have jurisdiction.
2. in respect of any matter which an adjudicating officer appointed under this Act or the Cyber Appellate Tribunal constituted under this Act is empowered by or under this Act to determine 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.
1. Any person aggrieved by any decision or order of the Cyber Appeal to High Court.

Appellate Tribunal may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Cyber Appellate Tribunal to him on any question of fact or law arising out of such order:

Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days.

63. (1) Any contravention under this Act may, either before or after Compounding of contraventions.

the institution of adjudication proceedings, be compounded by the Controller or such other officer as may be specially authorised by him in this behalf or by the adjudicating officer, as the case may be, subject to such conditions as the Controller or such other officer or the adjudicating officer may specify:

Provided that such sum shall not, in any case, exceed the maximum amount of the penalty which may be imposed under this Act for the contravention so compounded.

(2) Nothing in sub-section (1) shall apply to a person who commits the same or similar contravention within a period of three years from the date on which the first contravention, committed by him, was compounded.

Explanation.—For the purposes of this sub-section, any second or subsequent contravention committed after the expiry of a period of three years from the date on which the contravention was previously compounded shall be deemed to be a first contravention.

(3) Where any contravention has been compounded under subsection (1), no proceeding or further proceeding, as the case may be, shall be taken against the person guilty of such contravention in respect of the contravention so compounded.

64. A penalty imposed under this Act, if it is not paid, shall be Recovery of penalty.

recovered as an arrear of land revenue and the licence or the Digital Signature Certificate, as the case may be, shall be suspended till the penalty is paid.

CHAPTER XI

OFFENCES

65. Whoever knowingly or intentionally conceals, destroys or alters Tampering with computer source

or intentionally or knowingly causes another to conceal, destroy

documents.

or alter any computer source code used for a computer, computer programme, computer system or computer network, when the computer source code is required to be kept or maintained by law for the time being in force, shall be punishable with imprisonment up to three years, or with fine which may extend up to two lakh rupees, or with both.

Explanation.—For the purposes of this section, "computer source code" means the listing of programmes, computer commands, design and layout and programme analysis of computer resource in any form.

66. (1) Whoever with the intent to cause or knowing that he is Hacking with computer system.

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.

Protected 70. (1) The appropriate Government may, by notification in the system.

Official Gazette, declare that any computer, computer system or computer network to be a protected system.

(2)

The appropriate Government may, by order in writing, authorise the persons who are authorised to access protected systems notified under sub-section (1).

(3)

Any person who secures access or attempts to secure access to a protected system in contravention of the provisions of this section shall be punished with imprisonment of either description for a term which may extend to ten years and shall also be liable to fine.

Penalty for 71. Whoever makes any misrepresentation to, or suppresses any misrepresen

material fact from, the Controller or the Certifying Authority for tation.

obtaining any licence or Digital Signature Certificate, as the case may be, shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both.

Penalty for 72. Save as otherwise provided in this Act or any other law for the breach of

time being in force, any person who, in pursuance of any of the

confidentiality

powers conferred under this Act, rules or regulations made

and privacy. thereunder, has secured access to any electronic record, book, register, correspondence, information, document or other material without the consent of the person concerned discloses such electronic record, book, register, correspondence, information, document or other material to any other person shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both.

Penalty for 73. (1) No person shall publish a Digital Signature Certificate or publishing

otherwise make it available to any other person with the

Digital Signature

knowledge that—

Certificate false in certain

(a) the Certifying Authority listed in the certificate has

particulars.

not issued it; or

(b)

the subscriber listed in the certificate has not accepted it; or

(c)

the certificate has been revoked or suspended,

unless such publication is for the purpose of verifying a digital signature created prior to such suspension or revocation.

(2) Any person who contravenes the provisions of sub-section

(1) shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both.

1. Whoever knowingly creates, publishes or otherwise makes available a Digital Signature Certificate for any fraudulent or unlawful purpose shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both.
1. (1) Subject to the provisions of sub-section (2), the provisions of this Act shall apply also to any offence or contravention committed outside India by any person irrespective of his nationality.
2. (2) For the purposes of sub-section (1), this Act shall apply to an offence or contravention committed outside India by any person if the act or conduct constituting the offence or contravention involves a computer, computer system or computer network located in India.
1. Any computer, computer system, floppies, compact disks, tape drives or any other accessories related thereto, in respect of which any provision of this Act, rules, orders or regulations made thereunder has been or is being contravened, shall be liable to confiscation:
2. Provided that where it is established to the satisfaction of the court adjudicating the confiscation that the person in whose possession, power or control of any such computer, computer system, floppies, compact disks, tape drives or any other accessories relating thereto is found is not responsible for the contravention of the provisions of this Act, rules, orders or regulations made thereunder, the court may, instead of making an order for confiscation of such computer, computer system, floppies, compact disks, tape drives or any other accessories related thereto, make such other order authorised by this Act against the person contravening of the provisions of this Act, rules, orders or regulations made thereunder as it may think fit.
2. No penalty imposed or confiscation made under this Act shall prevent the imposition of any other punishment to which the person affected thereby is liable under any other law for the time being in force.
3. Notwithstanding anything contained in the Code of Criminal

2 of 1974 Procedure, 1973, a police officer not below the rank of Deputy Superintendent of Police shall investigate any offence under this Act.

Publication for fraudulent purpose.

Act to apply for offence or contravention committed outside India.

Confiscation

Penalties or confiscation not to interfere with other punishments.

Power to investigate offences.

Act to have 81. The provisions of this Act shall have effect notwithstanding anything overriding effect.

inconsistent therewith contained in any other law for the time being in force.

Controller, Deputy 82. The Presiding Officer and other officers and employees of a

Controller and Cyber Appellate Tribunal, the Controller, the Deputy Controller Assistant

and the Assistant Controllers shall be deemed to be public

Controllers to be

servants within the meaning of section 21 of the Indian Penal 45 of 1860.

public servants. Code.

Power to give directions.

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

Protection of action taken in

84. No suit, prosecution or other legal proceeding shall lie against

good faith.

the Central Government, the State Government, the Controller or any person acting on behalf of him, the Presiding Officer, adjudicating officers and the staff of the Cyber Appellate Tribunal for anything which is in good faith done or intended to be done in pursuance of this Act or any rule, regulation or order made thereunder.

Offences by companies.

85. (1) Where a person committing a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to, the company for the conduct of business of the company as well as the company, shall be guilty of the contravention and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention.

(2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly.

Explanation.—For the purposes of this section,—

(i)

"company" means any body corporate and includes a firm or other association of individuals; and

(ii)

"director", in relation to a firm, means a partner in the

firm. Removal of difficulties.

86. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty:

Provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act.

(2) Every order made under this section shall be laid, as soon

as may be after it is made, before each House of Parliament. Power of Central Government to

87. (1) The Central Government may, by notification in the Official make rules. Gazette and in the Electronic Gazette make rules to carry out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—

(a)

the manner in which any information or matter may be authenticated by means of digital signature under section 5;

(b)

the electronic form in which filing, issue, grant or payment shall be effected under sub-section (1) of section 6;

(c)

the manner and format in which electronic records shall be filed, or issued and the method of payment under sub-section (2) of section 6;

(d)

the matters relating to the type of digital signature, manner and format in which it may be affixed under section 10;

(e)

the security procedure for the purpose of creating secure electronic record and secure digital signature under section 16;

(f)

the qualifications, experience and terms and conditions of service of Controller, Deputy Controllers and Assistant Controllers under section 17;

(g)

other standards to be observed by the Controller under

clause (b) of sub-section (2) of section 20;

(h)

the requirements which an applicant must fulfil under sub-section (2) of section 21;

(i)

the period of validity of licence granted under clause

(a) of sub-section (3) of section 21;

(j)

the form in which an application for licence may be made under sub-section (1) of section 22;

(k)

the amount of fees payable under clause (c) of subsection (2) of section 22;

(l)

such other documents which shall accompany an application for licence under clause (d) of sub-section

(2) of section 22;

(m)

the form and the fee for renewal of a licence and the fee payable thereof under section 23;

(n)

the form in which application for issue of a Digital Signature Certificate may be made under sub-section

(1) of section 35;

(o)

the fee to be paid to the Certifying Authority for issue of a Digital Signature Certificate under sub-section

(2) of section 35;

(p)

the manner in which the adjudicating officer shall hold inquiry under sub-section (1) of section 46;

(q)

the qualification and experience which the adjudicating officer shall possess under sub-section

(3) of section 46;

(r)

the salary, allowances and the other terms and conditions of service of the Presiding Officer under section 52;

(s)

the procedure for investigation of misbehaviour or incapacity of the Presiding Officer under sub-section

(3) of section 54;

(t)

the salary and allowances and other conditions of service of other officers and employees under subsection (3) of section 56;

(u)

the form in which appeal may be filed and the fee thereof under sub-section (3) of section 57;

(v)

any other power of a civil court required to be prescribed under clause (g) of sub-section (2) of section 58; and

the following matters, namely:—

(a)

the electronic form in which filing, issue, grant receipt or payment shall be effected under sub-section (1) of section 6;

(b)

for matters specified in sub-section (2) of section 6;

(c)

any other matter which is required to be provided by rules by the State Government.

(3) Every rule made by the State Government under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House.

1. The Indian Penal Code shall be amended in the manner specified in the First Schedule to this Act.
2. The Indian Evidence Act, 1872 shall be amended in the manner specified in the Second Schedule to this Act.
3. The Bankers' Books Evidence Act, 1891 shall be amended in the manner specified in the Third Schedule to this Act.
4. The Reserve Bank of India Act, 1934 shall be amended in the manner specified in the Fourth Schedule to this Act.

————————

THE FIRST SCHEDULE

(See section 91)

AMENDMENTS TO THE INDIAN PENAL CODE

(45 OF 1860)

1. After section 29, the following section shall be inserted, namely:—
2. "29 A. The words "electronic record" shall have the meaning assigned to them in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000.”.
1. In section 167, for the words "such public servant, charged with the preparation or translation of any document, frames or translates that document", the words "such public servant, charged with the preparation or translation of any document or electronic record, frames, prepares or translates that document or electronic record" shall be substituted.
2. In section 172, for the words "produce a document in a Court of Justice", the words "produce a document or an electronic record in a Court of Justice" shall be substituted.
3. In section 173, for the words "to produce a document in a Court of Justice", the words "to produce a document or electronic record

Amendment of Act 45 of 1860.

Amendment of Act 1 of 1872.

Amendment of Act 18 of 1891.

Amendment of Act 2 of 1934.

Electronic record.

in a Court of Justice" shall be substituted.

1. In section 175, for the word "document" at both the places where it occurs, the words "document or electronic record" shall be substituted.
2. In section 192, for the words "makes any false entry in any book or record, or makes any document containing a false statement", the words "makes any false entry in any book or record, or electronic record or makes any document or electronic record containing a false statement" shall be substituted.
3. In section 204, for the word "document" at both the places where it occurs, the words "document or electronic record" shall be substituted.
4. In section 463, for the words "Whoever makes any false documents or part of a document with intent to cause damage or injury", the words "Whoever makes any false documents or false electronic record or part of a document or electronic record, with intent to cause damage or injury" shall be substituted.
5. In section 464,—

(a) for the portion beginning with the words "A person is said to make a false document" and ending with the words "by reason of deception practised upon him, he does not know the contents of the document or the nature of the alteration", the following shall be substituted, namely:—

“A person is said to make a false document or false electronic record—

First—Who dishonestly or fraudulently—

(a)

makes, signs, seals or executes a document or part of a document;

(b)

makes or transmits any electronic record or part of any electronic record;

(c)

affixes any digital signature on any electronic record;

(d)

makes any mark denoting the execution of a document or the authenticity of the digital signature

with the intention of causing it to be believed that such document or part of document, electronic record or digital signature was made, signed, sealed, executed, transmitted or affixed by or by the authority of a person by whom or by whose authority he knows that it was not made, signed, sealed, executed or affixed; or

Secondly—Who, without lawful authority, dishonestly or fraudulently, by cancellation or otherwise, alters a document or an electronic record in any material part thereof, after it has been made, executed or affixed with digital signature either by himself or by any other person, whether such person be living or dead at the time of such alteration; or

Thirdly—Who dishonestly or fraudulently causes any person to sign, seal, execute or alter a document or an electronic record or to affix his digital signature on any electronic record knowing that such person by reason of unsoundness of mind or intoxication cannot, or that by reason of deception practised upon him, he does not know the contents of the document or electronic record or the nature of the alteration.";

(b) after Explanation 2, the following Explanation shall be inserted at the end, namely:—

'Explanation 3.—For the purposes of this section, the expression "affixing digital signature" shall have the meaning assigned to it in clause (d) of sub-section (1) of section 2 of the Information Technology Act, 2000.'

10. In section 466,—

(a)

for the words "Whoever forges a document", the words "Whoever forges a document or an electronic record" shall be substituted;

(b)

the following Explanation shall be inserted at the end, namely:—

'Explanation.—For the purposes of this section, "register" includes any list, data or record of any entries maintained in the electronic form as defined in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000.'.

1. In section 468, for the words "document forged", the words "document or electronic record forged" shall be substituted.
2. In section 469, for the words "intending that the document forged", the words "intending that the document or electronic record forged" shall be substituted.
3. In section 470, for the word "document" in both the places where it occurs, the words "document or electronic record" shall be substituted.
4. In section 471, for the word "document" wherever it occurs, the words "document or electronic record" shall be substituted.
5. In section 474, for the portion beginning with the words "Whoever has in his possession any document" and ending with the words "if the document is one of the description mentioned in section

466 of this Code", the following shall be substituted, namely:—

"Whoever has in his possession any document or electronic record, knowing the same to be forged and intending that the same shall fraudulently or dishonestly be used as a genuine, shall, if the document or electronic record is one of the description mentioned in section 466 of this Code." .

1. In section 476, for the words "any document", the words "any document or electronic record" shall be substituted.
2. In section 477A, for the words "book, paper, writing" at both the places where they occur, the words "book, electronic record, paper, writing" shall be substituted.

——————————

THE THIRD SCHEDULE

(See section 93)

AMENDMENTS TO THE BANKERS' BOOKS EVIDENCE ACT 1891

(18 OF 1891)

1. In section 2—

(a)

for clause (3), the following clause shall be substituted namely:—

'(3) "bankers' books" include ledgers, day-books, cash-books, account-books and all other books used in the ordinary business of a bank whether kept in the written form or as printouts of data stored in a floppy, disc, tape or any other form of electro-magnetic data storage device;

(b)

for clause (8), the following clause shall be substituted, namely:—

'(8) "certified copy" means when the books of a bank,—

(a)

are maintained in written form, a copy of any entry in such books together with a certificate written at the foot of such copy that it is a true copy of such entry, that such entry is contained in one of the ordinary books of the bank and was made in the usual and ordinary course of business and that such book is still in the custody of the bank, and where the copy was obtained by a mechanical or other process which in itself ensured the accuracy of the copy, a further certificate to that effect, but where the book from which such copy was prepared has been destroyed in the usual course of the bank's business after the date on which the copy had been so prepared, a further certificate to that effect, each such certificate being dated and subscribed by the principal accountant or manager of the bank with his name and official title; and

(b)

consist of printouts of data stored in a floppy, disc, tape or any other electro-magnetic data storage device, a printout of such entry or a copy of such printout together with such statements certified in accordance

represents correctly, or is appropriately derived from, the relevant data."

——————

THE FOURTH SCHEDULE

(See section 94)

AMENDMENT TO THE RESERVE BANK OF INDIA ACT, 1934

(2 OF 1934)

In the Reserve Bank of India Act, 1934, in section 58, in sub

section (2), after clause (p), the following clause shall be inserted,

namely:—

"(pp) the regulation of fund transfer through electronic means between the banks or between the banks and other financial institutions referred to in clause (c) of section 45-1, including the laying down of the conditions subject to which banks and other financial institutions shall participate in such fund transfers, the manner of such fund transfers and the rights and obligations of the participants in such fund transfers;".

SUBHASH C. JAIN,

Secy. to the Govt. of India