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Information
Technology Act 1999.
The
Information Technology (I.T.) Act proposes to provide
the much needed boost to India’s e-commerce industry.
The Act offers legal framework so that the information
is not denied the legal effect, validity or enforceability,
solely on the ground that it is in the form of electronic
records.
Expectations
from the Act
In
India, as in the rest of the world, a major boom is
expected to be in B2B commerce (business to business
dealings), in which businesses sell to each other. Of
the Rs. 4500 million worth of e-commerce transactions
in fiscal year 1999-2000, as much as Rs. 4000 million
comprised B2B transactions while Rs. 500 million was
by way of B2C transactions (Retail Internet or business
to consumer transactions). After the introduction of
the Act, of the Rs. 25000 million of e-commerce projected
for the fiscal 2000-01( Nasscom Report), Rs. 22000 million
is expected to be in B2B while the rest will come from
B2C transactions. With the regulatory framework well
in place, improvement in telecom infrastructure, increase
in PC penetration, e-commerce transactions in India
are expected to rise to Rs. 100,000 million in 2001-02,
Rs. 250,000 million in 2002-03 and Rs. 500,000 million
in 2003-04.
Salient
features
-
Provides
legal recognition to e-commerce, which means the
contracts entered into using electronic medium like
e-mail, can now be enforced.
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Encourages
electronic governance by allowing government records
to be kept in an electronic form. The government
departments are now empowered to accept filing,
creating and retaining official documents in the
digital format.
-
Proposes
a legal framework for the authentication and origin
of electronic records / communications through digital
signatures. The digital signatures would now enjoy
the same recognition in law as physical signatures.
The digital signatures would have to be verified
by the certifying authorities who would authenticate
and issue digital signature certificates. The certifying
authorities could be private sector companies.
-
Creates
a new body called the Controller of Certifying Authorities
to act as regulatory body for certifying authorities.
The Controller who would be heading this body would
be supervising the certifying authorities and specify
the standards which the certifying authorities have
to maintain. The certifying authorities are required
to obtain a licence from the Controller of Certifying
Authorities. The Controller has also been given
the power to revoke the licence of a certifying
authority if it finds that a certifying authority
is not functioning properly.
-
Defines
cyber crimes, which includes hacking into a computer
network, creation of viruses and forcibly taking
over a computer network. The cyber laws laid down
in it provide for penalties, punishment and compensation
for unauthorised access to computer network, databases,
spread of computer viruses, disruption of services,
copying of software, tampering with source documents
and electronic forgery. The Act provides for a maximum
imprisonment for three years or a maximum fine of
Rs. 0.2 million or both. Transmitting obscene material
may also be punished up to two years imprisonment.
-
Provides
for appointment of adjudicating officers by the
Centre to decide whether or not a cyber crime has
been committed. The adjudicating officers would
have the right to award compensation not exceeding
Rs. 1.0 million.
-
Creates
a new body called the Cyber Law Appellate Tribunal.
The decisions of the adjudicating officers can be
challenged before this Tribunal. The decisions of
this appellate tribunal can in turn be appealed
in the High Court
Scope
of Applicability
The Act
does not apply to
- A negotiable
instrument as defined in section 13 of the Negotiable
Instruments Act, 1881 (26 of 1881)
- A power
of attorney as defined in section 1A of the Powers-of-
Attorney Act, 1882 (7 of 1882)
- A trust
as defined in section 3 of the Indian Trusts Act,
1882 (2 of 1882);
- A will
as defined in clause (h) of section 2 of the Indian
Succession Act, 1925 (39 of 1925) including any other
testamentary disposition by whatever name called;
- Any
contract for the sale or conveyance of immovable property
or any interest in such property;
Any such
class of documents or transactions as may be notified
by the Central Government in the Official Gazette.
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