Unauthorized copying or distribution of this material is strictly prohibited IT Act 2000 Amendments...

Unauthorized copying or distribution of this material is strictly prohibited

IT Act 2000

Amendments in 2008


Agenda

Background Parts of the Act What works What doesn’t work Conclusion


Background

Formulated in the year 2000 Based on the UN UNCITRAL Model Law

on Electronic Commerce Focuses quite a bit on digital signatures Does not directly address concerns related

to electronic commerce and data privacy Has been in the news in a number of high-

profile cases


Chapters in the Act

No. Title Description

1. Preliminary Definitions of terms used in the rest of the document

2. Digital Signature Very brief authorization for use of digital signatures for electronic records

3. Electronic Governance

Provides for the legal recognition of electronic records – especially by Govt. agencies

4. Attribution, Acknowledgement, and Despatch of Electronic Records

Discusses when an electronic message shall be considered to be “sent” and when it will be considered to be “received”

5. Secure Electronic Records and Secure Digital Signatures

Discusses (a bit vaguely) what is considered as “secure” electronic records and digital signatures

6. Regulation of Certifying Authorities

Discusses who can be appointed as a CA, and what their responsibilities and authorities are


Chapters in the Act


7. Digital Signature Certificates

Who can issue Digital Certificates, and what they should contain and rules for revocation

8. Duties of Subscribers Generation or acceptance of the key pair, and reasonable care for securely using it

9. Penalties and Adjudication

Penalties for damage to computer systems – Rs. 1 croreFailure to furnish information – Rs. 1,50,000Failure to maintain records – Rs. 10,000 per dayResiduary penalty – Rs. 25,000

10. Cyber Regulations Appellate Tribunal

Establishment, composition and powers of a Cyber Appellate Tribunal to adjudicate in matters related to this Act.

11. Offences Tampering with computer source documents – 3 years imprisonment, or fine of Rs. 2 lakhs or bothHacking with computer system – as abovePublishing of obscene information – as above


Chapters in the Act


12. Network Service Providers not to be Liable in Certain Cases

If offence committed without his knowledge or due diligence was exercised.

13. Miscellaneous Power of police officerOffences by companies (imp)Power of Central and State Governments


Schedules in the Act

The First Schedule – Amendments to the Indian Penal Code Primarily related to changes of the word “document”

to “document and electronic record” The Second Schedule – Amendment to the Indian

Evidence Act Admissibility of electronic evidence Most relevant to current discussions

The Third Schedule – Amendment to the Banker’s Book Evidence Act Definition of “banker’s books” expanded to include

electronic records Legitimacy of print outs

The Fourth Schedule – Amendment to the RBI Act Regulation of fund transfer through electronic means


Exploring the Act

Some definitions of note: Access Computer

Sections of note: 16: Security Procedure 43: Penalty for damage to computer 44: Penalty for failure to furnish information 46: Power to adjudicate 65: Tampering with computer source documents 66: Hacking with computer system 67: Publishing of information which is obscene 72: Penalty for breach of confidentiality and privacy


Exploring the Act

Sections of note: 76: Confiscation 78: Power to investigate offences 79: Network service providers not to be liable in

certain cases 80: Power of police officer to enter, search, etc. 85: Offences by companies

Amendments to Indian Evidence Act “Admissibility of electronic records”


• Aims to provide a legal and regulatory framework for promotion of e-Commerce and e-Governance.

• Enacted on 7th June 2000 and was notified in the official gazette on 17th October 2000.

• India became the 12th nation in the world to enacta Cyber law.

• Review on 2005 - Draft Amendments published


IT ACT, 2000 –MAJOR PROVISIONS

Extends to the whole of India

Electronic contracts will be legally valid

Legal recognition of digital signatures

Security procedure for electronic records and digital signature

Appointment of Controller of Certifying Authorities to license and regulate the working of Certifying Authorities


IT ACT, 2000 –MAJOR PROVISIONS (Contd..)

Certifying Authorities to get License from the Controller to issue digital signature certificates

Various types of computer crimes defined and stringent penalties provided under the Act

Appointment of Adjudicating Officer for holding inquiries under the Act

Establishment of Cyber Regulatory Appellate Tribunal under the Act



Appeal from order of Adjudicating Officer to Cyber Appellate Tribunal and not to any Civil Court

Appeal from order of Cyber Appellate Tribunal to High Court

Act to apply for offences or contraventions committed outside India

Network service providers not to be liable in certain cases



Power of police officers and other officers to enter into any public place and search and arrest without warrant

Constitution of Cyber Regulations Advisory Committee to advise the Central Government and the Controller


IT ACT, 2000 –ENABLES:

Legal recognition of digital signature is at par with the handwritten signature

Electronic Communication by means of reliable electronic record

Acceptance of contract expressed by electronic means

Electronic filing of documents

Retention of documents in electronic form


IT ACT, 2000 –ENABLES: (Contd..)

Uniformity of rules, regulations and standards regarding the authentication and integrity of electronic records or documents

Publication of official gazette in the electronic form

Interception of any message transmitted in the electronic or encrypted form


Changes / modifications in other prevailing Acts.

Indian Evidence Act, 1872

Indian Penal Code, 1860

Banker's Book Evidence Act, 1891

Reserve Bank of India Act, 1934


Excluded from the purview of the IT Act

A negotiable instrument as defined in Negotiable Instruments Act, 1881

A power-of-attorney as defined in Powers-of-Attorney Act, 1882

A trust as defined in the Indian Trusts Act, 1882

A will as defined in the Indian Succession Act 1925 including any other testamentary disposition by whatever name called


Excluded from the purview of the IT Act

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.


Digital Signatures

If a message should be readable but not modifiable, a digital signature is used to authenticate the senderParameter Paper Electronic

Authenticity May be forged Cannot be copied

Integrity Signature independent of the document

Signature depends on the contents of the document

Non-repudiation a.Handwriting expert neededb.Error prone

a.Any computer userb.Error free

[email protected]


Civil Offences under the IT Act 2000 (Section 43 )

Unauthorised copying, extracting and downloading of any data, database

Unauthorised access to computer, computer system or computer network

Introduction of virus

Damage to computer System and Computer Network

Disruption of Computer, computer network


Civil Offences under the IT Act 2000 (contd..) (Section 43 )

Denial of access to authorised person to computer

Providing assistance to any person to facilitate unauthorised access to a computer

Charging the service availed by a person to an account of another person by tampering and manipulation of other computer shall be liable to pay damages by way of

compensation not exceeding one crore rupees to the person so affected.


Criminal Offences under the IT Act 2000 (Sections 65 to 75)

Tampering with computer source documents

Hacking with computer system "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."

…shall be punishable with imprisonment up to three years, or with fine which may extend up to two lakh rupees, or with both.


Criminal Offences under the IT Act 2000

Electronic forgery I.e. affixing of false digital signature, making false electronic record

Electronic forgery for the purpose of cheating

Electronic forgery for the purpose of harming reputation Using a forged electronic record

Publication of digital signature certificate for fraudulent purpose

Offences and contravention by companies



67. Publishing of information which is obscene in electronic form.

"Whoever publishes or transmits or causes to be published in the electronic form, any material which is lascivious or appeals to the prurient interest or if its effect is such as totend to deprave and corrupt persons who are likely, having regard to all relevant circumstances, to read, see or hear the matter contained or embodied in it, shall be punished on first conviction with imprisonment of either description for a term which may extend to five years and with fine which may extend to one lakh rupees and in the event of a second or subsequent conviction with imprisonment of either description for a term which may extend to ten years and also with fine which may extend to two lakh rupees."



Electronic forgery I.e. affixing of false digital signature, making false electronic record

Electronic forgery for the purpose of cheating

Electronic forgery for the purpose of harming reputation Using a forged electronic record

Publication of digital signature certificate for fraudulent purpose

Offences and contravention by companies

Unauthorised access to protected system



Confiscation of computer, network, etc.

Unauthorised access to protected system (Sec. 70)

Misrepresentation or suppressing of material facts for obtaining Digital Signature Certificates

Directions of Controller to a subscriber to extend facilities to decrypt information (Sec. 69)

Breach of confidentiality and Privacy (Sec. 72)



Offence or contravention commited outside India (Sec. 75)

by any person irrespective of his nationality.

Network service providers not to be liable in certain case(Sec. 79 )

…no person providing any service as a network service provider shall be liable under this Act, rules or regulations made there under for any third party information or data made available by him if he proves that the offence or contravention was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence or contravention.


Amendments - 2008

Declare a system as a protected system and define security procedures for it

Allow central government to intercept, monitor and decrypt any system or network, and for service providers to comply

CG in consultation with private bodies may prescribe security practices and procedures

Phishing, password and online identity theft, MMS type scandals, are all covered

Child Pornography is explicitly covered allowing for heritage and religious material

Section 43A and Section 72 A which specify that they are measures towards "Data Protection"

Cyber terrorism is extensively dealt with Invasion of privacy is still not dealt with – common citizen will find

it difficult to prosecute for loss of personal information


Points

Nothing mentioned on e-commerce and validity of electronic commercial transactions

Majority of the sections deal with digital signatures and certifying authorities

Hacking is treated very briefly and perfunctorily “Unauthorized access” is a very broad definition as

per the Act Somewhat Draconian in the rights it gives to Deputy

Superintendent of Police Liabilities of “company” and “network provider” Implications of “reasonable storage of access data”

clause?


Cases

Famous Baazee (now eBay India) CEO arrest case Two school kids record a pornographic clip on their

mobile phone, and share it as an MMS An IIT student receives the clip and posts it on

Baazee.com (the Indian arm of Ebay) for auction When this is discovered, the Delhi Cyber Crime Cell

arrests: Mr. Avnish Bajaj, Director of Bazee The IIT student who posted the clip The juvenile who was in the clip

Section 67 “Publishing of information which is obscene in electronic form” is invoked

Conclusions


Cases

The Cybercime Cell’s website was hacked A hoax email about a bomb planted in

Parliament was sent to all the MP’s In both cases, the police arrested the

owners of the cyber cafes from where the crimes were committed

Sections 65 (tampering with computer source documents) and 66 (hacking with computer system) were invoked

Conclusions

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Unauthorized copying or distribution of this material is strictly prohibited IT Act 2000 Amendments...

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