The Information Technology Bill, 1999
By
Aashit Shah
(This article was published in ‘NAMASTE’ dated June 1, 2000, a four-monthly letter circulated by Aashit Shah)

The Indian Parliament, finally passed the much-awaited Information Technology (IT) Bill, 1999. As they say, "It’s better late than never". This one page is certainly insufficient to deal with the provisions of the bill. However, I have tried to outline the basics regarding the bill. If any of you require further details on any aspect, please do email or write to me.

History

The bill that was drafted by the Department of Electronics (DoE) in July 1998, could only be introduced in the House on December 16, 1999 when the new IT Ministry was formed. It underwent substantial alteration, with the Commerce Ministry making suggestions related to e-commerce and matters pertaining to World Trade Organization (WTO) obligations. The Ministry of Law and Company Affairs then vetted this joint draft. After its introduction in the House, the bill was referred to the 42-member Parliamentary Standing Committee following demands from the Members. The Union Cabinet approved the bill on May 13, 2000 and it was finally passed by both the houses of Parliament by May 17, 2000. The Bill will be enacted in June this year.

Important Provisions

• The Preamble to the Bill states that it aims at providing ‘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 and aims at facilitating electronic filing of documents with the Government agencies.
• Legal recognition is provided to digital signatures and electronic records with certain exceptions.
• It provides that digital signatures are to be authenticated by certifying authorities appointed under the Bill. These authorities would inter alia, have the license to issue digital signature certificates.
• A Cyber Regulations Appellate Tribunal (CRAT) is to be set up for appeals from the order of any adjudicating officer. The CRAT shall have certain powers of a civil court. A provision has been made to appeal from the decision of the CRAT to the High Court.
• Hacking and dissemination of obscene material has been made punishable.
• Stringent penalties have been provided for anyone who causes damage to computer systems (penalty not exceeding Rs. 1 crore) or who violates any provisions of the act.
• A police officer not below the rank of deputy superintendent of police has the power to enter any premise and arrest any person without a warrant if he believes that a cyber crime is about to be committed.
• Certain amendments are to be carried out in the Indian Penal Code, the Indian Evidence Act 1872, the Banker's Book Evidence Act, 1891 and the Reserve Bank of India Act, 1934 in connection with the Bill.

• E-commerce activities involving on-line contracts and business transactions will be promoted and legally recognised.
• Computer and Cyber Crimes will be curbed and offenders will be strictly penalised. Policing these crimes is extremely necessary. At the same time the police officers must also be educated in computers and Internet.

• The provisions of the Bill do not apply to (a) a negotiable instrument as defined in Section 13 of the Negotiable Instruments Act, 1988-1; (b) power of attorney as defined in Section 1A of the Powers-of-Attorney Act, 1988-2; (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 Bill is unclear as to the qualifications of an adjudicating officer and the manner in which he shall adjudicate and also does not indicate his powers when a person commits a cyber crime or violates any provisions of the law from outside India.

• The provision that no order of the Central Government appointing any person as the presiding officer of a CRAT shall be called into question in any manner and no act or procedure before a CRAT shall be called into question in any manner merely because there is a defect in the constitution of the CRAT may be violative of the fundamental rights of citizens under the Constitution.

• The search and arrest powers given to police officers are without any definite guidelines and may be misused.
• The powers to impose a penalty imposed for a computer crime upto Rs. 1 crore offers a large discretion to adjudicating officers and may turn out to be harmful.

India’s position vis-à-vis the world

India is now the only country in South Asia and second only to Singapore in Asia to have a legal framework for e-commerce and e-governance. Only 12 countries in the world have any form of cyber laws in force. Indian industry projections indicate that business transactions over the net would cross Rs. 2500 crore by 2002. The Bill has been passed at a time when the Internet population is low and therefore it is expected that implementing the law would not be difficult.

* The articles or opinions expressed in the articles must not be construed as any legal advice.