THE IT ACT BY VANNI (Autosaved)
THE IT ACT BY VANNI (Autosaved)
[43A. Compensation for failure to protect data].--Where a body corporate, possessing, dealing or
handling any sensitive personal data or information in a computer resource which it owns, controls or
operates, is negligent in implementing and maintaining reasonable security practices and procedures and
thereby causes wrongful loss or wrongful gain to any person, such body corporate shall be liable to pay
damages by way of compensation to the person so affected.
[73A].-- [Proof as to verification of digital signature.-- To ascertain whether a digital signature is that of
the person by whom it purports to have been affixed, the Court may direct
(a) that person or the Controller or the Certifying Authority to produce the Digital Signature Certificate;
(b) any other person to apply the public key listed in the Digital Signature Certificate and verify the digital
signature purported to have been affixed by that person.
1997-98:The Indian government May 1999: The IT Act, 2000 was
sets up a committee to examine drafted and introduced in the
and propose changes to existing Indian Parliament to regulate e-
laws to adapt to the digital commerce, digital transactions,
economy. and cybersecurity.
YEARS
Narayanan's assent and and provisions related to
becomes law. electronic signatures and records.
STUDY
computer system, etc
Related Case: Mphasis BPO Fraud: 2005In December 2004, four call
center employees, working at an outsourcing facility operated by
MphasiS in India, obtained PIN codes from four customers of
MphasiS’ client, Citi Group. These employees were not authorized to
obtain the PINs. In association with others, the call center employees
opened new accounts at Indian banks using false identities. Within
two months, they used the PINs and account information gleaned
during their employment at MphasiS to transfer money from the bank
accounts of Citi Group customers to the new accounts at Indian
banks.
By April 2005, the Indian police had been tipped off to the scam by a
U.S. bank and quickly identified the individuals involved in the scam.
Arrests were made when those individuals attempted to withdraw
cash from the falsified accounts, $426,000 was stolen; the amount
recovered was $230,000.
Verdict: The court held that Section 43(a) was applicable here due to
the nature of unauthorized access involved in committing
transactions.
CONCLUSION
The Impact: The Information Technology Act of 2000 has
significantly transformed India's digital landscape,
fostering economic growth, digital governance, and
cybersecurity.