CONSUMER PROTECTION ACT 1986:

● Consumer Protection Act:

● Definitions: Consumer, Defect and Deficiency.

● Rights of Consumer.

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● Unfair and Restrictive trade practices.

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● Role and Functions of Consumer Protection Councils.

● Consumer Forum; Structure and jurisdiction. Power of consumer forum.

● Remedies under act.

Q. 1. Explain the Consumer Protection Act 1986 & its essentials.

Ans.: In India most of the consumer are illiterates and unrecognized. Therefore they not aware of their
rights. On the other hand merchants and traders are richer and are higher the by these traders and
merchants. Thus to protect the interest of people of India the govt has passed Consumer Protection Act
1986. The various provisions are made under section 2 of this act for wellbeing of consumers.

DEFINATION:

1. Consumer:

(a) Any person who buys any goods for a consideration which has been paid or promised or partly paid
and partly promised or under any system of deferred and includes any person who used such goods
with the approval of the buyer. It does not include a person who buys goods for resale or for any
commercial purpose or

(b) Any person who hires or avails any services for a consideration which has been paid or promised or
partly paid and partly promised, or under any system of deferred payment, and includes any person
who is a beneficiary of such services with the approval of the hirer. It does not include a person who
avails of such services for any commercial purpose.

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Examples:

1. A buys a truck, ply it himself and hires a cleaner who accompany him all the time and at times
drives also when A is busy otherwise, A is a consumer.

2. P, an eye surgeon, purchased a machine from R for the hospital run by him. The machine was
found to be a defective one. R contended that P was not a consumer under the Act as the machine was
bought for commercial purposes. The National Commission rejected this contention and held that P is a
medical practitioner, a professional working by way of self-employment by using his knowledge and skill
to earn his livelihood. It was not proved by any evidence that P is running a huge hospital. Thus the
purchase of machinery is in the nature of self-employment. [Rampion Pharmaceuticals v. Dr. Preetam
Shah (1997) I CPJ 23 (

Who is not a Consumer?

1. Purchase any goods or avails any service free of charge;

2. Phases a good or hires a service for commercial purpose;

3. Avails any service under contract of services.

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SCOPE OF THE CONSUMER PROTECTION ACT 1986: 6.4. Explain the Consumer
Protection Act 1986.

Ans.: The salient features/ scope of the Act are summed up as under.

1. The act applies all goods and services unless specifically exempted by the Central
Government.

2. It covers all the sectors whether private, public or co operative.

3. The provisions of the Act are compensatory in nature.

4. It gives many rights consumer relating to goods, which he purchases, and services which is
given to him.

5. The act envisages of establishment of Consumer Protection Councils at the Central and
State level, whose main objects will be to promote and protect the rights of consumer.

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What is "Deficiency of Service"?

According to the definition under Section. 2(11) of Consumer Protection Act 2019 ("the Act"), any sort of
imperfection, or defect in the feature, quality, amount, worth, authenticity, its capacity or potential, and
standard which is obligatory to be maintained and regulated as per the laws and statutes in function or
any agreement/contract claimed by the seller, with respect to the products and goods, is known as
deficiency.

Wilful and deliberate concealment of important information, omission or negligence of acts by seller
which may lead to injury or loss to the consumer(s), also comes under the ambit of deficiency of service.

Any act(s), which a prudent seller is supposed to do or is supposed to omit, but deliberately does the
contrast, such actions amount to 'deficiency of service'.

Defects

Section 2(1)(f) of the Act provides that, “defect” means any fault, imperfection or shortcoming in the
quality, quantity, potency, purity or standard which is required to be maintained by or under any law of

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the time being in force under any contract, express or implied or as is claimed by the trader in any

I-Sem Notes
manner whatsoever in relation to any goods.

. A Pressure Cooker burst and caused injury to the user. It was held to be a manufacturing defect - T.T.
(P.) Ltd. v. Akhil Bhartiya Grahak Panchayat II [1996] CPJ 239 NC.

2. Failure to handover registration book along with jeep purchased by complainant is a defect.
[Ramesh Chandra v. Commercial Tax Officer [1993] 3 CPR 182 (Ori.).

3. Where laboratory test report showed that soft drink was not fit for human consumption, it was
held defective - Narayanan Vyankatkrishnan Iyengar v. Shakti Foods [1994] 2 CPJ 652 (Mah.).

4. Rape seed oil adulterated with toxic substances, which led to paralysis of limbs and other
disabilities, has been considered as defective - Barsad Ali v. MD West Bengal Essential Commodities
Supply Corporation Ltd. (1993) 1 CPR 217 WB.

5. Electric household appliances which are not in accordance with the standards prescribed by ISI,
being unsafe are defective - Farooq Hazi Ismail Saya v. Gavabhai Bhesania (1991) 2 CPJ 452 (Guj.).

6. Gas Cylinder with excessive gas is defective goods - Dayanand A Avasare v. Bharat Petroleum
Corporation Ltd. (1993) 1 CPR 278 (Mah.).

7. Development of cracks of half inch to three and a half inch in walls and mosaic floor in a flat after
taking possession from a Housing Board - R. Shanmugasundaram v. Tamil Nadu Housing Board (1998) 1
CPJ 96 NC.

8. A supplied white marble to B. Later on the colour of the marble changed. B sued a alleging supply of
defective marble. It was held that A should have expressly told B that the marble would not retain its
colour when polished. In the absence of such assertion, it is deemed that A made B to understand that

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the marble would retain its white colour and when the colour changed, it comes within the scope of
‘defect’ in goods under the Act - Chitranjan Sahu v. N.C. Jain II (1993) CPJ 1127 (Ori.).

9. A sold a stolen car to B. B wanted to sue A for defect in the title of the car. Here B cannot sue A
under the Consumer Protection Act as the defect in title of goods would not constitute defective goods
as defined under the Act

What is Unfair Trade Practice?

An "unfair trade practice" means a trade practice, which, for the purpose of promoting any sale, use or
supply or services, adopts unfair method, or unfair or deceptive practice. Some of these practices include:

False Representation

or benefits

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1. When goods and services are not of stated standard, quality or grade;

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2. When second hand, renovated goods are sold as

New ones;

When goods and service do not have the

3when goods and services do not have the claimed use, useful.

4. When products/services do not have the claimed warranty/guarantee

5 when the price of the product or service is misleading

6. false and misleading advertisement of selling at bargain price

7. Offering gifts, prizes, etc. to lure customers with no intention of providing them.

8. Selling goods which do not fall within the safety standards set up by competent authority.

9 Hoarding or destroying goods with the intention of raising the cost of these or similar goods
manufactured in greater number so as to manipulate higher prices.

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10. Manufacturing or offering spurious goods or adopting deceptive practices in the provision of services.

Do you know?

1."Goods once sold will not be taken back" or

2"No exchange", or

3"no refunds under any circumstances"

It amounts to Unfair Trade Practice and does not carry any legal weight.

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RESTRICTIVE TRADE PRACTICE:

6.3. Explain Restrictive Trade Practice

Ans.: Section 2 (1) (n) defines "Restrictive Trade Practice" means a trade practice which

tends to bring about manipulation of price or its conditions of delivery or to effect flow of supplies in the
market relating to goods or services in such a manner as to impose on the consumer unjustified cost or
restrictions and shall include: (a) Delay beyond the period agreed to by a trader in supply of such goods or
in providing the services which has led or is likely to lead to rise in the price.

(b) Any trade practice which requires a consumer to buy, hire or avail of any goods

or, as the case may be, services as condition precedent to buying, hiring or availing

of other goods or services.

For example a cooking gas distributer insists their customers to buy gas stove as a condition to give gas
connection, it amounts to restrictive trade practice. .

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What constitutes Unfair and Restrictive Trade Practices according to Consumer Protection

Act, 2013?

Unfair Trade Practice

• Adopting unfair methods or deception to promote sale, use or supply of goods or services e.g.

• Misleading public about price (e.g. bargain price when it is not so).

• Charging above MRP printed.

• Misleading public about another’s goods or services.

• Falsely claiming a sponsorship, approval or affiliation.

• Offering misleading warranty or guarantee.

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Restrictive Trade Practice

• Price fixing or output restraint re: delivery/flow of supplies to impose unjustified

Costs/restrictions on consumers.

• Collusive tendering: market fixing territorially among competing suppliers, depriving consumers

of free choice, fair competition.

• Supplying only to particular distributors or on condition of sale only within a territory.

• Delaying in supplying goods/services leading to rise in price.

• Requiring a consumer to buy/hire any goods or services as a pre-condition for buying/hiring

Other goods or services.

Examples of restrictive practices include

EXCLUSIVE DEALING, REFUSAL TO SUPPLY, FULL LINE FORCING, TIE-IN SALES,

AGGREGATED REBATES, RESALE PRICE MAINTENANCE and LOSS LEADING.

Example: A, a gas distributor instead his customers to buy gas stove as a condition to give gas
connection. It was held that it was a restrictive trade practice - Re. Anand Gas RTPE 43/1983 (MRTPC).

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However, where there is no such precondition and the buyer is free to take either product, no tying
arrangement could be alleged even though the seller may offer both the products as a single unit at a
composite price.

Example: A is a furniture dealer. He is selling Sofa at Rs. 20,000 and Bed at

Rs. 15,000. He has an offer that whoever will buy Sofa and Bed both, he will charge Rs. 30,000 only.
Here the choice is open to the customer to buy the products single or composite. This is not a restrictive
trade practice.

Note: The term ‘restrictive trade practice’ has a very wide meaning when read in context of the MRTP
Act, 1969. However under Consumer Protection Act, 1986, it has been used in a narrower sense.

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What are the Rights of consumers?

The six rights are:

1. Right to Safety: The right to be protected against the marketing of goods and services, which
are hazardous to life and property.

2. Right to be informed: The right to be informed about the quality, quantity, potency, purity,
standard and price of goods or services, as the case may be so as to protect the consumer
against unfair trade practices..

3. Right to Choose: The right to be assured, wherever possible, access to a variety of goods
and services at competitive prices.
Means right to be assured, wherever possible of access to variety of goods and
services at competitive price. In case of monopolies, it means right to be assured of
satisfactory quality and service at a fair price. It also includes right to basic goods and
services. This is because unrestricted right of the minority to choose can mean a
denial for the majority of its fair share. This right can be better exercised in a
competitive market where a variety of goods are available at competitive prices

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4. Right to be heard: The right to be heard and to be assured that consumer's interests will
receive due consideration at appropriate fora.

5. Right to Redressal: The right to seek redressal against unfair trade practices or restrictive
trade practices or unscrupulous exploitation of consumers..

6. Right to Consumer Education: Consumer education is a right that protects the consumer from
large companies that sell products and services. According to the consumer rights bill that was
established during President John F. Kennedy's term, consumers have the right to know more
about the products that they purchase. In addition, consumers have the right to be protected
from malicious acts. Consumer education provides resources and information that inform the
consumer of such things as price and trade practices. Consumer education involves three parts:
Consumer, Business, and Government.

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STATE CONSUMER DISPUTE REDRESSAL COMMISSION STATE "COMMISSION):
CONSUMER DISPUTES REDRESSAL AGENCIES:

QUE-Explain the role & function of various councils which has been made to protect & promote
the interests of consumer.

Ans.: A. Consumer protection councils:

The Consumer Protection Councils are established at Central level, State Level, and District
Level. We have one Central Council, many State Councils and District Councils. These councils
work towards the promotion and protection of the rights of the consumers. They give publicity to
the matters concerning consumer interest, take steps towards furthering consumer education
and protecting consumer from exploitation. They advice the Government in matter of policy
formulation regarding protection of the consumer rights. The Government has notified "The
Consumer Protection Rule 1987" with a view to prescribe procedure in regard to the transaction
of business by the Central Council and to prescribe the rules as to the composition of the
Central Council. These Rules also prescribe the terms condition of the services of the members
of the National Commission, procedure to be followed for conduct of business and for hearing of
appeal by the National Commission.

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1. The Central Consumer Protection Council:

The Central Govt by a notification in the official gazette shall establish a council to be known as
"The Central Consumer Protection Council" (Central Council).

The Central Council shall consist of the following members.

(a) The Minister In-charge of Consumer Affairs in the Central Government, who shall be its
Chairman.

(b) Such members of other official or non official members representing such interests as may
be prescribed.

CONSTITUTION OF CENTRAL COUNCIL:

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The constitution of Central Council has since been prescribed under rule 3 of th Consumer
Protection Rule 1987. It provides that the Central Council shall consist the following members,
not exceeding 150, namely.

1)Minister scharge of the Consumer Affans in the Connal Covernment who il re the Chairman of
the Central Council.

2) the minister in charge of the Consumer Affairs in the Central Governmen who shall be the
Vice Chairman of the Central Council

3) The minister In change of the Consumer Affairs in States

4)Members of Parliament five from Lok Sabha and three from Rajya Sabha

5)The Secretary of the National commission for Schedule Cast and Schedule Tribes

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6)Representatives of the Central Government Department and autonomous organisations
concerned with consumer interest- not exceeding twenty

7)The Registrar of National Consumer Dispute Redressal Commission, New Delhi

8)Representatives of the Consumers Organisations or Consumers not less than thirry tive

9 Representatives of women-not less than ten

10 Representatives of farmer, traders, and industries not exceeding twenty.

11 A person capable of representing consumer interest not specified not specified above - not

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exceeding fifteen

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12 The Secretary In-charge of Consumer Affairs in the Central Government shall be the
memher secretary of the Central Council

It may thus be observed that members of council are selected from various areas affecting
consumer interest, who are leading members of state wide organisation representing segments
of the consumer public, so as to establish a broadly based and representative Central Council

Term:

The term of the Central Council shall be three years Vacancy:

Any member may, by writing under his and to the Chairman of the Central Council, resigns from
the Council. The vacancies, caused or otherwise shall filled from die same category by the
Central Government and such persons shall hold office so long as the members whose place
he fills would have been entitled to hold office, if the vacancy had not occurred.

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2. The State Consumer Protection Council:

The power to establish State Councils is with States as per section 7, 1 The State Govt by a
notification in the official gazette shall establish a council to be known as The State Consumer
Protection Council" (State Council)

2 The State Council shall consist of the following members, namely: (a) The Minister In-charge
of the Consumer Affairs in the State Government who shall be its Chairman

(b) Such number of other official or non official members representing such interest as may be
prescribed by the State Government.

(c) Such number of other official or non official members, not exceeding ten, as may be

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nominated by the Central Government.

I-Sem Notes
3. The State Council shall meet as and when necessary but not less than two meetings shall be
held every year.

4. The State Council shall meet at such time and place as the chairman may think fit and shall
observe such procedure in regard to the transaction of its business as may be prescribed by the
State Government.

It may thus be observed that the State Government has been empowered to decide the number
and qualification of the members of State Council besides nominated by the Central
Government. The State Government has been further empowered to prescribe the procedure to
be followed by the State Council in regard to the transaction

of its business.

OBJECTS OF THE STATE COUNCIL:

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The objects of every State Council shall be to promote and protect within the State the rights of
the consumers laid down in clauses (a) to (f) of section 6. Thus the objects of the State Councils
are same as that of the Central Council discussed above.

3. District Consumer Protection Council (District Council): Section S-A and 8-B of the Consumer
Protection Act added by the Amendment Act of 2002 deals with the establishment of the District
Council at district level. Section 8-A provides as follows: 1. The State Government shall
establish for every district, by notification, a council to be known as the District Consumer
Protection Council with effect from such date as it may specify in such notification.

2. The District Consumer Protection Council shall consist of the following members, namely as
below.

(a) The Collector of the district who shall be its Chairman.

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I-Sem Notes
(b) Such number of other officials and non-official members representing such interests OF as
may be prescribed by the State Government. 3. The District Council shall meet at such time and
place as the Chairman may think fit and shall observe such procedure in regard to the
transaction of its business as may be prescribed by the State Government.

OBJECTS OF THE DISTRICT COUNCIL:

As per section 8-B the objects of every District Council shall be to promote and to protect within
the district the rights of the consumer as laid down in clause (a) to (1) of section 6. Thus the
objects of the District Council are same as the Central and

State Council.

(B) CONSUMER FORUM OR COMMISSION:

6. Explain the roles & functions of consumer Dispute Redressal Agencies.

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Ans.: ESTABLISHMENT OF CONSUMER DISPUTE REDRESSAL AGENCIES:

(A)The state Govt by notification in the official gazette shall establish a consumer dispute
Redressal agency to be known as "District Forum"

(B) The State Government by notification in the official gazette shall establish a consumer
dispute Redressal agency/ commission known as State Commission. (C) The Central Govt by
notification in the official gazette shall establish a national

dispute Redressal agency / commission to be known as "National Commission".

1. DISTRICT CONSUMER FORUM:

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The State Government by notification in the official gazette shall establish a consumer dispute
Redressal agency to be known as "District Forum" in each district.

COMPOSITION:

District Forum shall consist of a president who is a qualified District Judge. There shall be two
other representatives experienced in judicial matters and one of whom shall be a woman.

APPOINTMENT:

Every appointment shall be made by the State Govt on the recommendation of a selection
committee consisting of.

(a) The President of the State Commission (Chairman).

(b) Secretary, Law Dept of the State (Member).

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(c) Secretary In charge of the Dept dealing with Consumer Affairs in State (Member). The terms
of office shall be for five years or up to the age sixty five whichever earlier

RESIGNATION:

A member may resign his office in writing addressed to the State Govt.

JURISDICTION:

The District Forum shall have jurisdiction to entertain complaints where the value of the goods
or services and the compensation, if any claimed does not exceed Rs.1 CRORE

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WORKING:

A complaint in relation to any goods sold or delivered can be made by the consumer or by any
recognized consumer association or by the Central or State Govt to the District Forum. On
receipt of such complaint the district forum shall forward a copy of it to the opposite party for its
opinion within a period of 30 days or any extended period not more than 15 days if any.

If the opposite party fails to comply with, within the specified period, the District Forum shall
proceed to settle the dispute in the prescribed manner. If the deiect in the goods cannot be
determined, then the District Forum shall obtained a sample of the goods from the complainant,
seal it and authenticate it, in the prescribed manner. However the concerned authority
(Laboratory) has to report of its finding there on to the District Forum, within a period of 45 days
from the receipt of the reference. A complainant has also to deposit prescribed fees with the
District Forum. However a copy of report and remark of the District Forum shall be forwarded to
the parties concerned. Therefore a reasonable opportunity is given to both parties being heard,
objection if any, in the matter. Then on the basis of evidence, the District Forum shall issue an
appropriate order under section 14 to the party.

POWERS OF THE DISTRICT FORUM:

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1. AFFIDAVITS:

District Forum can submit any affidavits that are to be discussed.

2.CHARGES:

District Forum can provide an order to refund purchasing price of goods and other charges in
connection with cases.

3. COMPENSATION:

In case of any loss or injury caused due to goods, the District Court can provide an order to pay

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compensation to Guilty party.

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4.DEFECTS:

District Forum can provide an order to remove all the defects that are disclosed in aboratory
test.

5.DEFICIENCIES:

District Forum empowered to provide order to remove all the deficiencies in the goods.

6. MISLEADING ADVERTISEMENT:

Sometimes misleading advertisements are made to attract and misguide the consumers. District
Forum can prohibit misleading advertisement and can suggest corrective advertisement to
neutralize the effect of misleading advertisement at the cost of manufacturer.

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7.NEW GOODS:

District Forum is empowered to replace defective goods. It means an order is issued by District
Forum to supply new goods instead of defective goods.

8. PROHIBITION:

District Forum can prohibit manufacturing of all those items, which contain prohibited materials
and chemicals.

9. UNFAIR TRADE PRACTICE:

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District Forum can provide an order to stop all unfair trade practices, which the manufactures

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adopt for earning higher profits.

10. PENALTY:

Any person who makes a false complaint, he shall be liable to pay the opposite party such cost
not exceeding Rs. 10000= as may be specified in the order. Any trader who fails to comply with
any order of the District Forum, State Commission and National Commission shall punish with
imprisonment for a term which shall not be less than one month but which may extend to 3
years or with fine which shall not be less than Rs. 2000 but which may extend to Rs. 10000 or
both.

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State Consumer Dispute Redressal Commission" consumer disputes from Rs. one crore to
10 crore (10000000=) are directly settled by State Commission. The various provisions of State
Commission are provided under section 16 to 19 of State Consumer Protection Act. High Court
Judge is appointed to control over the various activities of the State Commission. Besides these
there are two other members, one of them being woman. All these members must not be less
than 35 years, possess at least degree of law and 10 years working experience in handling of
various problems in trades, industries, law, business, economics, administration, etc. is
necessary.

FUNCTIONS OF STATE COMMISSION:

1. Appointment: Each of the Judge and member of State Commission is initially appointed for
the period of 5 years or up to attainment of age of 67 years whichever is earlier.

2. Re-appointment: Judge or members of the State Commission be re-appointed for the period

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of further 5 years or up to attainment of age 67 years whichever is earlier.

I-Sem Notes
3. Appeal: If a particular party is dissatisfied with the decision of the District Forum at that time
then dissatisfied party can make appeal to the State Commission within 30 days.

4. Claim: All the claims above twenty lakhs but below one crore can be settled directly in State
Commission without claiming in District Forum.

5. Hearing Of Appeal: Appeal made with the State Commission shall be disposed of within 90
days from the date of application.

6. Majority: If the members of State Commission differ in opinion the decision shall be decided
on the opinion of majority.

(3) NATIONAL COSUMER DISPUTE REDRESSAL COMMISSION (NATIONAL

COMMISSION):

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It is top most authority to solve consumer disputes. Any consumer, producer om trader who is
dissatisfied with the result of State Commission can make appeal with National Commission.
The various provisions of national commission are provided under section 20 to 23 of Consumer
Protection Act 1986.

PROVISION OF NATIONAL COMMISSION:

Composition: Each National Commission shall consist of a president who has been a Judge of
th Supreme Court. There shall be 4 other members, one of whom shall be woman.

Appointment: Every appointment shall be made by the Central Govt on the recommendation of
a selection committee consisting of the following.

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(a) A person who is a Judge of the Supreme Court to be nominated by the Chief Justice of India

I-Sem Notes
(Chairman).

(b) The Secretary in Dept of Legal Affairs in the Government of India (Member)..

(c) The Secretary of the Dept of dealing with the consumer affairs Government of India
(Member).

(d) Ages of judges and members of National Commission should not be less than 35 years.

Terms of office: The terms of office shall be 5 years or up to the age 70 years and shall not be
eligible for reappointment. The main Judge of National Commission shall not be eligible for
reappointment.

Jurisdiction: A National Commission shall entertain complaints where the value of goods and
services and compensation, if any claim exceeds above one crore and it also entertains appeal
against the order of any State Commission.

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Appeal: Appeal against the result of National Commission can be made within the 30 days from
the date of result.

Recommendations: Terms and conditions of appointment as well as salary and allowances of

Judge and all other 4 members of National Commission shall be determined by the Central
Government on recommendation of the selection committee.

Time limit: National Commission should provide the result of consumer dispute within maximum
period of 3 months.

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Amendments

District forum: value of goods and services up to 1 crore

State commission: from 1 crore to 10 crores

National commission: above 10 crores

Mediation centres has been established for the disputes resolution with all forums. Court
can refer settlement through mediation.

IT Act 2000:

Objectives & Scope,

Important definitions,

E-Governance and offences & Penalties

The Information Technology Act, 2000 or ITA, 2000 or IT Act, was notified on
October 17, 2000. It is the law that deals with cybercrime and electronic
commerce in India.

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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.

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.

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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

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 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

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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.

Scope and Application of the IT Act, 2000

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The Act extends to whole of India and shall also apply to any violation or
contravention of the provisions of the Act done by any person anywhere in the
world. However the Act shall not apply to:

1) A negotiable instrument (other than a cheque) as defined in Section 13 of the

Negotiable Instruments Act, 1881.The provisions of the Act shall apply to
electronic cheques and the truncated cheques as defined in Section 6 of the
Negotiable Instruments Act, 1881, subject to such 'modifications and amendments
as may be necessary for carrying-out the purposes of the Negotiable Instruments
Act, 1881 [Section 81-A].

2) A power-of-attorney as defined in Section 1A of the Powers-of-Attorney Act,

1882:

3) A trust as defined in Section 3 of the Indian Trusts Act, 1882.

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I-Sem Notes
4) 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.

5) Any contract for the sale or 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 Official

E-GOVERNENCE

Introduction

E-governance is the application of information and communication technologies to

transform the efficiency, effectiveness, transparency, and accountability of
informational and transactional exchanges within government, between
governments, agencies of National, State, Municipal, and Local levels., citizen and
businesses, and to empower citizens through access and use of information.

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E-governance is a transition process from conventional to people-oriented
proactive electronic system.

This is a big change in the mindset of people, Putting it in a positive way, it is not a
change but a transition.

It may not be achievable unless it slowly evolves among the people. All
communities of people should be attracted towardsthe system.

To accept this transition process, the communities need to be trained and

educated.

The electronic media should be user-friendly and accessible by different

communities including the disabled and the under-privileged. This is called
transition management system of e-governance.

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Objectives of E-Governance

E-governance solutions are oriented towards helping government organisations

transform into enterprise

infrastructure-based end-to-end digital governments that: 1) Build services around

citizen's choice.

2) Make government more accessible.

3) Facilitate social inclusion.

4) Provide information responsibly.

5) Use government resources effectively.

6) Reduce government spending.

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7) Deliver online services 8) Involve citizens in the governing process.

Advantages of E-Governance.

Advantages of e-governance are as follows:

1) It greatly simplifies the process of information accumulation for citizens and

businesses.

2) It empowers people to gather information regarding any department of

government and get involved in the process of decision-making

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3) It strengthens the very fabric of democracy by ensuring greater citizen

I-Sem Notes
participation at all levels of governance.

4) It leads to automation of services, ensuring that information regarding every

work of public welfare is casily available to all citizens, eliminating corruption.

5) It revolutionises the way governments function, ensuring much more

transparency in the functioning thereby eliminating corruption

6) Since the information regarding every activity of government is easily available,

it would make every government department responsible as they know that every
action of theirs is closely monitored.

Offense and Penalties

Penalties associated with various offences are as follows

1.Tampering with Computer Source Documents [

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Whoever knowingly or intentionally conceals, destroys or alters or intentionally or
knowingly causes another to conceal, destroy or alter any computer source code used for
a computer, computer program, computer system or computer network, when the
computer source code is required to be kept or maintained by law for the time being in
force, shall be punishable with imprisonment upto three years, or with fine which may
extend upto two lac rupees, or with both.

2)Hacking with Computer System [Section 66]

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 hack.ii) Whoever commits hacking shall be punished with imprisonment
upto three years, owith fine which may extend upto two lac rupees, or with both. 3)
Publishing of Information which is Obscene in Electronic Form []:

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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 to
tend 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 three years and with fine which may extend to five lac rupees and in the
event of a second or subsequent conviction with imprisonment of either description for a
term which may extend to five years and also with fine which may extend to ten lac
rupees.

4 Penalty for Misrepresentation [Section 71]: Whoever makes any misrepresentation to,
or suppresses any material fact from, the Controller or the Certifying Authority for
obtaining any license or Digital Signature Certificate, as the case may be, shall be
punished with imprisonment for a term which may extend to two years, or with fine
which may extend to one lac rupees, or with both.

5) Penalty for Breach of Confidentiality and Privacy [Section 72]: Save as otherwise
provided in this Act or any other law for the time being in force, any person who, in
pursuance of any of the powers confer under this Act, rules or regulations made
thereunder, has secured access to any electronic record, book, register, correspondence,
information, document, or other material without the consent of the person concerned
discloses such electronic record, book, register, correspondence, information, document

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or other material to any other person shall be punished with imprisonment for a term
which may extend to two years, or with fine which may extend to one lac rupees, or with
both.

6) Penalty for Publishing Digital Signature Certificate False in certain Particulars [Section
73]

i) No person shall publish a Digital Signature Certificate or otherwise make it available to

any other person with the knowledge that:

a) The Certifying Authority listed in the certificate has not issued it; or

b) The subscriber listed in the certificate has not accepted it, or

c) The certificate has been revoked or suspended, unless such publication is for the

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purpose of verifying a digital signature created prior to such suspension or revocation..

I-Sem Notes
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