Information Technology Act, 2000
In 1996, the United Nations Commission on International Trade Law
(UNCITRAL) adopted the model law on electronic commerce (e-
commerce) to bring uniformity in the law in different countries.
Further, the General Assembly of the United Nations recommended that all
countries must consider this model law before making changes to their own
laws. India became the 12th country to enable cyber law after it passed the
Information Technology Act, 2000.
While the first draft was created by the Ministry of
Commerce, Government of India as the ECommerce Act, 1998, it was
redrafted as the ‘Information Technology Bill, 1999’, and passed in May
2000.
Objectives of the Act
The Information Technology Act, 2000 provides legal recognition to the
transaction done via electronic exchange of data and other electronic means
of communication or electronic commerce transactions.
This also involves the use of alternatives to a paper-based method
of communication and information storage to facilitate the electronic filing
of documents with the Government agencies.
Further, this act amended the Indian Penal Code 1860, the Indian Evidence
Act 1872, the Bankers’ Books Evidence Act 1891, and the Reserve Bank of
India Act 1934. The objectives of the Act are as follows:
i. Grant legal recognition to all transactions done via electronic exchange of
data or other electronic means of communication or e-commerce, in place of
the earlier paper-based method of communication.
ii. Give legal recognition to digital signatures for the authentication of any
information or matters requiring legal authentication
iii. Facilitate the electronic filing of documents with Government agencies and
also departments
iv. Facilitate the electronic storage of data
v. Give legal sanction and also facilitate the electronic transfer of funds
between banks and financial institutions
vi. Grant legal recognition to bankers under the Evidence Act, 1891 and
the Reserve Bank of India Act, 1934, for keeping the books of accounts in
electronic form.
Features of the Information Technology Act, 2000
a. All electronic contracts made through secure electronic channels are legally
valid.
b. Legal recognition for digital signatures.
c. Security measures for electronic records and also digital signatures are in
place
d. A procedure for the appointment of adjudicating officers for holding
inquiries under the Act is finalized
e. Provision for establishing a Cyber Regulatory Appellant Tribunal under the
Act. Further, this tribunal will handle all appeals made against the order of
the Controller or Adjudicating Officer.
f. An appeal against the order of the Cyber Appellant Tribunal is possible only
in the High Court
g. Digital Signatures will use an asymmetric cryptosystem and also a hash
function
h. Provision for the appointment of the Controller of Certifying Authorities
(CCA) to license and regulate the working of Certifying Authorities. The
Controller to act as a repository of all digital signatures.
i. The Act applies to offences or contraventions committed outside India
j. Senior police officers and other officers can enter any public place and search
and arrest without warrant
k. Provisions for the constitution of a Cyber Regulations Advisory Committee
to advise the Central Government and Controller.
Applicability and Non-Applicability of the Act
Applicability
According to Section 1 (2), the Act extends to the entire country, which also
includes Jammu and Kashmir. In order to include Jammu and Kashmir, the
Act uses Article 253 of the constitution. Further, it does not take citizenship
into account and provides extra-territorial jurisdiction.
Section 1 (2) along with Section 75, specifies that the Act is applicable to
any offence or contravention committed outside India as well. If the conduct
of person constituting the offence involves a computer or a computerized
system or network located in India, then irrespective of his/her nationality,
the person is punishable under the Act.
Lack of international cooperation is the only limitation of this provision.
Non-Applicability
According to Section 1 (4) of the Information Technology Act, 2000, the Act
is not applicable to the following documents:
1. Execution of Negotiable Instrument under Negotiable Instruments Act, 1881,
except cheques.
2. Execution of a Power of Attorney under the Powers of Attorney Act, 1882.
3. Creation of Trust under the Indian Trust Act, 1882.
4. Execution of a Will under the Indian Succession Act, 1925 including any
other testamentary disposition
by whatever name called.
5. Entering into a contract for the sale of conveyance of immovable property or
any interest in such property.
6. Any such class of documents or transactions as may be notified by the
Central Government in the Gazette.
Solved Question for You
Q1. What are the objectives of the Information Technology Act, 2000?
Answer:
The primary objectives of the IT Act, 2000 are:
Granting legal recognition to all transactions done through electronic data
exchange, other means of electronic communication or e-commerce in place
of the earlier paper-based communication.
Providing legal recognition to digital signatures for the authentication of any
information or matters requiring authentication.
Facilitating the electronic filing of documents with different Government
departments and also agencies.
Facilitating the electronic storage of data
Providing legal sanction and also facilitating the electronic transfer of funds
between banks and financial institutions.
Granting legal recognition to bankers for keeping the books of accounts in an
electronic form. Further, this is granted under the Evidence Act, 1891 and
the Reserve Bank of India Act, 1934.
