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THE INFORMATION TECHNOLOGY ACT, 2000

ARRANGEMENT OF SECTIONS

CHAPTER I

PRELIMINARY

SECTIONS

1. Short title, extent, commencement and application.
2. Definitions. CHAPTER II DIGITAL SIGNATURE AND ELECTRONIC SIGNATURE
3. Authentication of electronic records. 3A. Electronic signature. CHAPTER III ELECTRONIC GOVERNANCE
4. Legal recognition of electronic records.
5. Legal recognition of electronic signatures.
6. Use of electronic records and electronic signatures in Government and its agencies. 6A. Delivery of services by service provider.
7. Retention of electronic records. 7A. Audit of documents, etc., maintained in electronic form.
8. Publication of rule, regulation, etc., in Electronic Gazette.
9. Sections 6, 7 and 8 not to confer right to insist document should be accepted in electronic form.
10. Power to make rules by Central Government in respect of electronic signature. 10A. Validity of contracts formed through electronic means. CHAPTER IV ATTRIBUTION, ACKNOWLEDGEMENT AND DESPATCH OF ELECTRONIC RECORDS
11. Attribution of electronic records.
12. Acknowledgment of receipt.
13. Time and place of despatch and receipt of electronic record. CHAPTER V SECURE ELECTRONIC RECORDS AND SECURE ELECTRONIC SIGNATURE
14. Secure electronic record.
15. Secure electronic signature.
16. Security procedures and practices. CHAPTER VI REGULATION OF CERTIFYING AUTHORITIES
17. Appointment of Controller and other officers.
18. Functions of Controller.
19. Recognition of foreign Certifying Authorities.
20. [ Omitted .].
21. Licence to issue electronic signature Certificates.
22. Application for licence.
23. Renewal of licence.
24. Procedure for grant or rejection of licence.
25. Suspension of licence.
26. Notice of suspension or revocation of licence.

SECTIONS

27. Power to delegate.
28. Power to investigate contraventions.
29. Access to computers and data.
30. Certifying Authority to follow certain procedures.
31. Certifying Authority to ensure compliance of the Act, etc.
32. Display of licence.
33. Surrender of licence.
34. Disclosure. CHAPTER VII ELECTRONIC SIGNATURE CERTIFICATES
35. Certifying authority to issue electronic signature Certificate.
36. Representations upon issuance of Digital signature Certificate.
37. Suspension of Digital Signature Certificate.
38. Revocation of Digital Signature Certificate.
39. Notice of suspension or revocation. CHAPTER VIII DUTIES OF SUBSCRIBERS
40. Generating key pair. 40A. Duties of subscriber of Electronic Signature Certificate.
41. Acceptance of Digital Signature Certificate.
42. Control of private key. CHAPTER IX PENALTIES, COMPENSATION AND ADJUDICATION
43. Penalty and compensation for damage to computer, computer system, etc. 43A. Compensation for failure to protect data.
44. Penalty for failure to furnish information, return, etc.
45. Residuary penalty.
46. Power to adjudicate.
47. Factors to be taken into account by the adjudicating officer. CHAPTER X THE APPELLATE TRIBUNAL
48. Appellate Tribunal.
49. [ Omitted .].
50. [ Omitted .].
51. [ Omitted .].
52. [ Omitted .]. 52A. [ Omitted .]. 52B. [ Omitted .]. 52C. [ Omitted .]. 52D. Decision by majority.
53. [ Omitted .].
54. [ Omitted .].
55. Orders constituting Appellate Tribunal to be final and not to invalidate its proceedings.
56. [ Omitted .].
57. Appeal to Appellate Tribunal.
58. Procedure and powers of the Appellate Tribunal.
59. Right to legal representation.
60. Limitation.
61. Civil court not to have jurisdiction.
62. Appeal to High Court.
63. Compounding of contraventions.

SECTIONS

83. Power to give directions.
84. Protection of action taken in good faith. 84A. Modes or methods for encryption. 84B. Punishment for abetment of offences. 84C. Punishment for attempt to commit offences.
85. Offences by companies.
86. Removal of difficulties.
87. Power of Central Government to make rules.
88. Constitution of Advisory Committee.
89. Power of Controller to make regulations.
90. Power of State Government to make rules.
91. [ Omitted. ].
92. [ Omitted. ].
93. [ Omitted. ].
94. [ Omitted. ]. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE [ Omitted. ]. THE FOURTH SCHEDULE [ Omitted. ].

THE INFORMATION TECHNOLOGY ACT, 2000

ACT NO. 21 OF 2000

[9 th 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 Banker’s 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 1

PRELIMINARY

1. Short title, extent, commencement and application. —( 1 ) This Act may be called the

Information Technology Act, 2000.

( 2 ) It shall extend to the whole of India and, save as otherwise 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^1 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. (^2) [( 4 ) Nothing in this Act shall apply to documents or transactions specified in the First Schedule:

Provided that the Central Government may, by notification in the Official Gazette, amend the First Schedule by way of addition or deletion of entries thereto.

( 5 ) Every notification issued under sub-section ( 4 ) shall be laid before each House of Parliament.]

2. Definitions. —( 1 ) In this Act, unless the context otherwise requires,—

( 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;

1. 17th October, 2000, vide notification No. G.S.R. 788 (E), dated 17th October, 2000, see Gazette of India, Extraordinary, Part II, sec. 3( ii ).
2. Subs. by Act 10 of 2009, s. 3, for sub-section ( 4 ) (w.e.f. 27-10-2009).

( nb ) ―cyber security‖ means protecting information, equipment, devices, computer, computer resource, communication device and information stored therein from unauthorised access, use, disclosure, disruption, modification or destruction;] ( 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; (^1) [( ta ) ―electronic signature‖ means authentication of any electronic record by a subscriber by means of the electronic technique specified in the Second Schedule and includes digital signature; ( tb ) ―Electronic Signature Certificate‖ means an Electronic Signature Certificate issued under section 35 and includes Digital Signature Certificate;] ( 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; (^1) [( ua ) Indian Computer Emergency Response Team‖ means an agency established under sub- section ( 1 ) of Section 70B;] ( v ) ―information‖ includes 2 [data, message, text,] images, sound, voice, codes, computer programmes, software and data bases or micro film or computer generated micro fiche; (^3) [( w ) ―intermediary‖, with respect to any particular electronic records, means any person who on behalf of another person receives, stores or transmits that record or provides any service with respect to that record and includes telecom service providers, network service providers, internet service providers, web-hosting service providers, search engines, online payment sites, online-auction sites, online-market places and cyber cafes;] ( 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;

1. Ins. by Act 10 of 2009, s. 4 (w.e.f. 27-10-2009).
2. Subs. by s. 4, ibid., for ―data, text‖ (w.e.f. 27-10-2009).
3. Subs. by s. 4, ibid., for clause ( w ) (w.e.f. 27-10-2009).

( 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 1 [electronic 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 (^2) [DIGITAL SIGNATURE AND ELECTRONIC SIGNATURE]

3. Authentication of electronic records.– ( 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. (^3) [3A. Electronic signature. —( 1 ) Notwithstanding anything contained in section 3, but subject to the

provisions of sub-section ( 2 ), a subscriber may authenticate any electronic record by such electronic signature or electronic authentication technique which—

( a ) is considered reliable; and ( b ) may be specified in the Second Schedule. ( 2 ) For the purposes of this section any electronic signature or electronic authentication technique shall be considered reliable if—

1. Subs. by Act 10 of 2009, s. 2, for ―digital signature‖ (w.e.f. 27-10-2009).
2. Subs. by s. 5, ibid ., for the heading ―DIGITAL SIGNATURE‖ (w.e.f. 27-10-2009).
3. Ins. by s. 6, ibid. (w.e.f. 27-10-2009).

( b ) the manner or method of payment of any fee or charges for filing, creation or issue any electronic record under clause ( a ). (^1) [6A. Delivery of services by service provider. —( 1 ) The appropriate Government may, for the

purposes of this Chapter and for efficient delivery of services to the public through electronic means authorise, by order, any service provider to set up, maintain and upgrade the computerised facilities and perform such other services as it may specify, by notification in the Official Gazette.

Explanation .—For the purposes of this section, service provider so authorised includes any individual, private agency, private company, partnership firm, sole proprietor firm or any such other body or agency which has been granted permission by the appropriate Government to offer services through electronic means in accordance with the policy governing such service sector.

( 2 ) The appropriate Government may also authorise any service provider authorised under sub-section ( 1 ) to collect, retain and appropriate such service charges, as may be prescribed by the appropriate Government for the purpose of providing such services, from the person availing such service.

( 3 ) Subject to the provisions of sub-section ( 2 ), the appropriate Government may authorise the service providers to collect, retain and appropriate service charges under this section notwithstanding the fact that there is no express provision under the Act, rule, regulation or notification under which the service is provided to collect, retain and appropriate e-service charges by the service providers.

( 4 ) The appropriate Government shall, by notification in the Official Gazette, specify the scale of service charges which may be charged and collected by the service providers under this section:

Provided that the appropriate Government may specify different scale of service charges for different types of services.]

7. Retention of electronic records. —( 1 ) Where any law provides that documents, records or information shall be retained for any specific period, then, that requirement shall be deemed to have been satisfied if such documents, records or information are retained in the electronic form, if—

( a ) the information contained therein remains accessible so as to be usable for a subsequent reference; ( b ) the electronic record is retained in the format in which it was originally generated, sent or received or in a format which can be demonstrated to represent accurately the information originally generated, sent or received; ( c ) the details which will facilitate the identification of the origin, destination, date and time of despatch or receipt of such electronic record are available in the electronic record: Provided that this clause does not apply to any information which is automatically generated solely for the purpose of enabling an electronic record to be despatched or received. ( 2 ) Nothing in this section shall apply to any law that expressly provides for the retention of documents, records or information in the form of electronic records. (^2) [ 7A. Audit of documents, etc., maintained in electronic form. —Where in any law for the time

being in force, there is a provision for audit of documents, records or information, that provision shall also be applicable for audit of documents, records or information processed and maintained in the electronic form.]

8. Publication of rule, regulation, etc., in Electronic Gazette. —Where any law provides that any rule, regulation, order, bye-law, notification or any other matter shall be published in the Official Gazette, then, such requirement shall be deemed to have been satisfied if such rule, regulation, order, bye-law, notification or any other matter is published in the Official Gazette or Electronic Gazette:

Provided that where any rule, regulation, order, by-law, notification or any other matter is published in the Official Gazette or Electronic Gazette, the date of publication shall be deemed to be the date of the Gazette which was first published in any form.

9. Sections 6, 7 and 8 not to confer right to insist document should be accepted in electronic form. —Nothing contained in sections 6, 7 and 8 shall confer a right upon any person to insist that any

1. Ins. by Act 10 of 2009, s. 7 (w.e.f. 27-10-2009).
2. Ins. by s. 8, ibid. (w.e.f. 27-10-2009).

Ministry or Department of the Central Government or the State Government or any authority or body established by or under any law or controlled or funded by the Central or State Government should accept, issue, create, retain and preserve any document in the form of electronic records or effect any monetary transaction in the electronic form.

10. Power to make rules by Central Government in respect of^1 [electronic signature]. —The Central Government may, for the purposes of this Act, by rules, prescribe—

( a ) the type of 1 [electronic signature];

( b ) the manner and format in which the 1 [electronic signature] shall be affixed; ( c ) the manner or procedure which facilitates identification of the person affixing the 1 [electronic signature]; ( d ) control processes and procedures to ensure adequate integrity, security and confidentiality of electronic records or payments; and

( e ) any other matter which is necessary to give legal effect to 1 [electronic signatures]. (^2) [10A. Validity of contracts formed through electronic means. —Where in a contract formation,

the communication of proposals, the acceptance of proposals, the revocation of proposals and acceptances, as the case may be, are expressed in electronic form or by means of an electronic records, such contract shall not be deemed to be unenforceable solely on the ground that such electronic form or means was used for that purpose.]

CHAPTER IV ATTRIBUTION, ACKNOWLEDGMENT AND DESPATCH OF ELECTRONIC RECORDS

11. Attribution of electronic records. —An electronic record shall be attributed to the originator— ( a ) if it was sent by the originator himself; ( 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. 12. Acknowledgment of receipt. —( 1 ) Where the originator has not 3 [stipulated] 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 he 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.

13. Time and place of despatch and receipt of electronic record. —( 1 ) Save as otherwise agreed to between the originator and the addressee, the despatch of an electronic record occurs when it enters a computer resource outside the control of the originator.

1. Subs. by Act 10 of 2009, s. 2, for ―digital signature‖ (w.e.f. 27-10-2009).
2. Ins. by s. 9, ibid. (w.e.f. 27-10-2009).
3. Subs. by s. 10, ibid ., for ―agreed with the addressee‖ (w.e.f. 27-10-2009).

( 2 ) The Controller shall discharge his functions under this Act subject to the general control and directions of the Central Government.

( 3 ) The Deputy Controllers and Assistant Controllers shall perform the functions assigned to them by the Controller under the general superintendence and control of the Controller.

( 4 ) The qualifications, experience and terms and conditions of service of Controller, Deputy Controllers 1 [,Assistant Controllers, other officers and employees] shall be such as may be prescribed by the Central Government.

( 5 ) The Head Office and Branch Office of the office of the Controller shall be at such places as the Central Government may specify, and these may be established at such places as the Central Government may think fit.

( 6 ) There shall be a seal of the Office of the Controller.

18. Functions of Controller. —The Controller may perform all or any of the following functions, namely:–

( a ) exercising supervision over the activities of the Certifying Authorities; ( b ) certifying public keys of the Certifying Authorities; ( c ) laying down the standards to be maintained by the Certifying Authorities; ( d ) specifying the qualifications and experience which employees of the Certifying Authority should possess; ( e ) specifying the conditions subject to which the Certifying Authorities shall conduct their business; ( f ) specifying the contents of written, printed or visual materials and advertisements that may be distributed or used in respect of a 2 [electronic signature] Certificate and the public key; ( g ) specifying the form and content of a 2 [electronic signature] Certificate and the key; ( h ) specifying the form and manner in which accounts shall be maintained by the Certifying Authorities; ( i ) specifying the terms and conditions subject to which auditors may be appointed and the remuneration to be paid to them; ( j ) facilitating the establishment of any electronic system by a Certifying Authority either solely or jointly with other Certifying Authorities and regulation of such systems; ( k ) specifying the manner in which the Certifying Authorities shall conduct their dealings with the subscribers; ( l ) resolving any conflict of interests between the Certifying Authorities and the subscribers; ( 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. Recognition of foreign Certifying Authorities. —( 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 sub-section ( 1 ), the 2 [electronic 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.

1. Subs. by Act 10 of 2009, s. 12, for ―Assistant Controllers‖ (w.e.f. 27-10-2009).
2. Subs. by s. 2, ibid., for ―Digital Signature‖ (w.e.f. 27-10-2009).

20. [ Controller to act as repository. ] Omitted by the Information Technology ( Amendment ) Act , 2008 (10 of 2009), s. 13 ( w. e. f. 27-10-2009). 21. Licence to issue 1 [electronic signature] Certificates. —( 1 ) Subject to the provisions of sub-section ( 2 ), any person may make an application, to the Controller, for a licence to issue 1 [electronic signature] Certificates.

( 2 ) No licence shall be issued under sub-section ( 1 ), unless the applicant fulfils such requirements with respect to qualification, expertise, manpower, financial resources and other infrastructure facilities, which are necessary to issue 1 [electronic signature] Certificates as may be prescribed by the Central Government.

( 3 ) A licence granted under this section 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.

22. Application for licence. —( 1 ) Every application for issue of a licence shall be in such 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.

23. Renewal of licence. —An application for renewal of a licence shall be— ( 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. 24. Procedure for grant or rejection of licence. —The Controller may, on receipt of an application under sub-section ( 1 ) of section 21, after considering the documents accompanying 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.

25. Suspension of licence. —( 1 ) The Controller may, if he is satisfied after making such 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; (^2) [( c ) failed to maintain the procedures 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 sub-section ( 1 ), by order suspend such licence pending the completion of any enquiry ordered by him:

1. Subs. by Act 10 of 2009, s. 2, for ―Digital Signature‖ (w.e.f. 27-10-2009).
2. Subs. by notification No. S.O. 1015(E) (w.e.f. 19-9-2002).

32. Display of licence. —Every Certifying Authority shall display its licence at a conspicuous place of the premises in which it carries on its business. 33. Surrender of licence. —( 1 ) Every Certifying Authority whose licence is suspended or revoked shall immediately after such suspension or revocation, surrender the licence to the Controller.

( 2 ) Where any Certifying Authority fails to surrender a licence under sub-section ( 1 ), the person in whose favour a licence is issued, shall be guilty of an offence and shall be punished with imprisonment which may extend up to six months or a fine which may extend up to ten thousand rupees or with both.

34. Disclosure. – ( 1 ) Every Certifying Authority shall disclose in the manner specified by regulations—

( a ) its 1 [electronic signature] Certificate 2 ***; ( b ) any certification practice statement relevant thereto; ( c ) notice of the revocation or suspension of its Certifying Authority certificate, if any; and ( d ) any other fact that materially and adversely affects either the reliability of a 1 [electronic signature] Certificate, which that Authority has issued, or the Authority's ability to perform its services.

( 2 ) Where in the opinion of the Certifying Authority any event has occurred or any situation has arisen which may materially and adversely affect the integrity of its computer system or the conditions subject to which a 1 [electronic signature] Certificate was granted, then, the Certifying Authority shall–

( a ) use reasonable efforts to notify any person who is likely to be affected by that occurrence; or ( b ) act in accordance with the procedure specified in its certification practice statement to deal with such event or situation.

CHAPTERVII (^1) [ELECTRONIC SIGNATURE] CERTIFICATES

35. Certifying authority to issue 1 [electronic signature] Certificate. —( 1 ) Any person may make an application to the Certifying Authority for the issue of a 1 [electronic signature] Certificate in such form as may be prescribed by the Central Government.

( 2 ) Every such application shall be accompanied by such fee not exceeding twenty-five thousand rupees as may be prescribed by the Central Government, to be paid to the Certifying Authority:

Provided that while prescribing fees under sub-section ( 2 ) different fees may be prescribed for different classes of applicants.

( 3 ) Every such application shall be accompanied by a certification practice statement or where there is no such statement, a statement containing such particulars, as may be specified by regulations.

( 4 ) On receipt of an application under sub-section ( 1 ), the Certifying Authority may, after consideration of the certification practice statement or the other statement under sub-section ( 3 ) and after making such enquiries as it may deem fit, grant the 1 [electronic signature] Certificate or for reasons to be recorded in writing, reject the application: (^3) * * * * * (^4) [Provided] that no application shall be rejected unless the applicant has been given a reasonable

opportunity of showing cause against the proposed rejection.

36. Representations upon issuance of Digital Signature Certificate. —A Certifying Authority while issuing a Digital Signature Certificate shall certify that—

( a ) it has complied with the provisions of this Act and the rules and regulations made thereunder; ( b ) it has published the Digital Signature Certificate or otherwise made it available to such person relying on it and the subscriber has accepted it;

1. Subs. by Act 10 of 2009, s. 2, for ―Digital Signature‖ (w.e.f. 27-10-2009).
2. Certain words omitted by s. 16, ibid. (w.e.f. 27-10-2009).
3. The first proviso omitted by s. 17, ibid. (w.e.f. 27-10-2009).
4. Subs. by s. 17, ibid ., for ―Provided further‖ (w.e.f. 27-10-2009).

( c ) the subscriber holds the private key corresponding to the public key, listed in the Digital Signature Certificate; (^1) [( ca ) the subscriber holds a private key which is capable of creating a digital signature;

( cb ) the public key to be listed in the certificate can be used to verify a digital signature affixed by the private key held by the subscriber;] ( d ) the subscriber's public key and private key constitute a functioning key pair; ( e ) the information contained in the Digital Signature Certificate is accurate; and ( f ) it has no knowledge of any material fact, which if it had been included in the Digital Signature Certificate would adversely affect the reliability of the representations in clauses ( a ) to ( d ).

37. Suspension of Digital Signature Certificate. – ( 1 ) Subject to the provisions of sub-section ( 2 ), the Certifying Authority which has issued a Digital Signature Certificate may suspend such Digital Signature Certificate,–

( a ) on receipt of a request to that effect from– ( i ) the subscriber listed in the Digital Signature Certificate; or ( ii ) any person duly authorised to act on behalf of that subscriber; ( b ) if it is of opinion that the Digital Signature Certificate should be suspended in public interest. ( 2 ) A Digital Signature Certificate shall not be suspended for a period exceeding fifteen days unless the subscriber has been given an opportunity of being heard in the matter.

( 3 ) On suspension of a Digital Signature Certificate under this section, the Certifying Authority shall communicate the same to the subscriber.

38. Revocation of Digital Signature Certificate. – ( 1 ) A Certifying Authority may revoke a Digital Signature Certificate issued by it–

( a ) where the subscriber or any other person authorised by him makes a request to that effect; or ( b ) upon the death of the subscriber; or ( c ) upon the dissolution of the firm or winding up of the company where the subscriber is a firm or a company. ( 2 ) Subject to the provisions of sub-section ( 3 ) and without prejudice to the provisions of sub-section ( 1 ), a Certifying Authority may revoke a Digital Signature Certificate which has been issued by it at any time, if it is of opinion that–

( a ) a material fact represented in the Digital Signature Certificate is false or has been concealed; ( b ) a requirement for issuance of the Digital Signature Certificate was not satisfied; ( c ) the Certifying Authority's private key or security system was compromised in a manner materially affecting the Digital Signature Certificate's reliability; ( d ) the subscriber has been declared insolvent or dead or where a subscriber is a firm or a company, which has been dissolved, wound-up or otherwise ceased to exist. ( 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.

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

1. Ins. by Act 10 of 2009, s. 18 (w.e.f. 27-10-2009).

( 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; (^1) [( i ) destroys, deletes or alters any information residing in a computer resource or diminishes its value or utility or affects it injuriously by any means; ( j ) steal, conceal, destroys or alters or causes any person to steal, conceal, destroy or alter any computer source code used for a computer resource with an intention to cause damage;] (^2) [he shall be liable to pay damages by way of compensation 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. (^1) [( v ) ―computer source code‖ means the listing of programme, computer commands, design and layout and programme analysis of computer resource in any form.] (^3) [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.

1. Ins. by Act 10 of 2009, s. 21 (w.e.f. 27-10-2009).
2. Subs. by s. 21, ibid ., for certain words (w.e.f. 27-10-2009).
3. Ins. by s. 22, ibid. (w.e.f. 27-10-2009).

Explanation .–For the purposes of this section,– ( i ) ―body corporate‖ means any company and includes a firm, sole proprietorship or other association of individuals engaged in commercial or professional activities; ( ii ) ―reasonable security practices and procedures‖ means security practices and procedures designed to protect such information from unauthorised access, damage, use, modification, disclosure or impairment, as may be specified in an agreement between the parties or as may be specified in any law for the time being in force and in the absence of such agreement or any law, such reasonable security practices and procedures, as may be prescribed by the Central Government in consultation with such professional bodies or associations as it may deem fit; ( iii ) ―sensitive personal data or information‖ means such personal information as may be prescribed by the Central Government in consultation with such professional bodies or associations as it may deem fit.]

44. Penalty for failure to furnish information, return, etc. – If any person who is required under this Act or any rules or regulations made thereunder to–

( a ) furnish any document, return or report to the Controller or 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 therefor in the regulations fails to file return or furnish the same within the time specified therefor 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.

45. Residuary penalty. – Whoever contravenes any rules or regulations made under this 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. 46. Power to adjudicate. – ( 1 ) For the purpose of adjudging under this Chapter whether any person has committed a contravention of any of the provisions of this Act or of any rule, regulation, 1 [direction or order made thereunder which renders him liable to pay penalty or compensation,] 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) [( 1A ) The adjudicating officer appointed under sub-section ( 1 ) shall exercise jurisdiction to

adjudicate matters in which the claim for injury or damage does not exceed rupees five crore:

Provided that the jurisdiction in respect of the claim for injury or damage exceeding rupees five crores shall vest with the competent court.]

( 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 ―Appellate Tribunal‖ under sub-section ( 2 ) of section 58, and–

1. Subs. by Act 10 of 2009, s. 23, for ―direction or order made thereunder‖ (w.e.f. 27-10-2009).
2. Ins. by s. 23, ibid. (w.e.f. 27-10-2009).