Crime Branch Advisory
The Nigerian Scam
Information Technology Amendment Act 2006
Notes on clauses
Clause 2.—This clause seeks to substitute the words “digital signatures” by the words
“electronic signatures” as provided in the Table thereunder so as to make it technology neutral.
Clause 3.—This clause seeks to amend sub-section (4) of section 1 so as to exclude Negotiable Instruments, power of attorney, trust, will and contract from the application of the Act and to empower the Central Government to amend the entries in the First Schedule. Clause 4.—This clause seeks to amend section 2 and to define certain new
Clause 5.—This clause seeks to substitute heading of Chapter II with new heading
‘DIGITAL SIGNATURE AND ELECTRONIC SIGNATURE’ so as to make the Act technology neutral.
Clause 6.—This clause seeks to insert a new section 3A which provides for authentication of electronic record by electronic signature or electronic authentication technique. It also empowers the Central Government to insert in the Second Schedule any electronic signature or electronic authentication technique and prescribe the procedure for the purpose of ascertaining the authenticity of electronic signature.
Clause 7.—This clause seeks to insert a new section 6A which empowers the Central Government as well as the State Government to authorise the service providers for providing efficient services through electronic means to the public against appropriate service charges. Further the said section empowers the Central Government as well as the State Government to specify the scale of service charges.
Clause 8.—This clause seeks to insert a new section 10A to provide for contracts formed through electronic means.
Clause 9.—This clause seeks to make amendment in sub-section (1) of section 12
which is of a consequential nature.
Clause 10.—This clause seeks to substitute sections 15 and 16 so as to remove certain inconsistencies in the procedures relating to secure electronic signatures and to provide for security procedures and practices.
Clause 11.—This clause provides for omission of section 20 with a view to empower the Certifying Authority under section 30 to act as repository of electronic signatures.
Clause 12.—This clause seeks to make amendment in sub-section (1) of section 29 with a view to limit the powers of the Controller in respect of access to any computer system only with reference to the provisions of Chapter VI and not with reference to the provisions of entire Act. The powers with respect to access to any computer system under other provisions of the Act are proposed to be entrusted to the Central Government under section 69.
Clause 13.—This clause seeks to amend section 30 with a view to empower the Certifying
Authority to be the repository of all Electronic Signature Certificates issued under the Act.
Clause 14.—This clause seeks to amend section 34 with a view to make the provisions of that section technology neutral.
Clause 15.—This clause seeks to amend section 35 with a view to omit the first proviso to sub-section (4) so as to make the provisions of that section technology neutral. Clause 16.—This clause seeks to amend section 36 so as to add two more
representations for issuance of digital signature.
Clause 17.—This clause seeks to insert a new section 40A which provides for duties of the subscriber of Electronic Signature Certificate.
Clause 18.—This clause seeks to make an amendment in the Chapter heading of Chapter IX with a view to provide for making compensation for damages in respect of various contraventions.
Clause 19.—This clause seeks to amend section 43 so as to add certain more contraventions for damaging computer or computer system.
Clause 20.—This clause seeks to insert a new section 43A so as to empower the Central Goverment to provide for reasonable security practices and procedures and the sensitive personal data or information and also to provide for compensation for failure to protect sensitive personal data or information stored in a computer resource.
Clause 21.—This clause seeks to make amendment in section 46 with a view to make consequential changes.
Clauses 22 and 23.—These clauses seek to make amendments in the heading of Chapter X and section 48 with a view to suitably modify the same with the title of the Cyber Appellate Tribunal as mentioned in clause (n) of sub-section (1) of section 2.
Clause 24.—This clause seeks to substitute sections 49 to 52 and insert new sections
52A to 52D. Section 49 provides for the establishment of the Cyber Appellate Tribunal. Sections 50, 51 and 52 provide for qualifications, term of office, conditions of service and salary and allowances of the Chairperson and Members of the said Tribunal. Sections
52A to 52 D provide for powers of the Chairperson and distribution of business among the
Clauses 25 to 28.—These clauses seek to make amendments in sections 53 to 56
with a view to make the Cyber Appellate Tribunal a multi-member body.
Clause 29.—This clause seeks to insert a proviso in section 61 so as to provide jurisdiction to courts in certain cases.
Clause 30.—This clause seeks to amend section 64 so as to recover the compensation also as the arrears of land revenue.
Clause 31.—This clause seeks to substitute sections 66 and 67 and insert new sections 66A and 67A with a view to make certain more computer related wrong actions punishable and enhance the penalty.
Clause 32.—This clause seeks to amend section 68 so as to reduce the quantum of punishment and fine.
Clause 33.—This clause seeks to substitute section 69 so as to empower the Central Government to issue directions to an agency for interception or monitoring or decryption of any information transmitted through any computer resource. It also provides for punishment for rendering assistance to such agency.
Clause 34.—This clause seeks to amend section 70 so as to enable the Central Government as well as the State Government to declare any computer resource as protected system. It also provides for information security practices and procedures for such protected system.
Clause 35.—This clause seeks to insert a new section 70A for empowering Indian Computer Emergency Response Team to serve as a national nodal agency in respect of Critical Information Infrastructure.
Clause 36.—This clause seeks to insert a new section 72A which makes the disclosure of information in breach of a lawful contract punishable.
Clause 37.—This clause seeks to substitute sections 77 and 78 and to insert new sections 77A and 77B. Section 77 provides that compensation, penalties or confiscation under the Act shall not interfere with the award of compensation or imposition of any other penalty or punishment under any other law for the time being in force. Section 77A provides for certain offences relating to computer resources as compoundable offences. Section 77B provides that Court shall take cognizance only on a complaint and not otherwise. Section 78 provides for power to investigate offences.
Clause 38.—This clause seeks to substitute Chapter XII and to insert a new Chapter XIIA which provides for exemption of intermediaries from liability in certain circumstances and also empowers the Central Government to prescribe guidelines to be observed by intermediaries for providing services. It also empowers the Central Government to specify the Examiner of Electronic Evidence.
Clause 39.—This clause seeks to omit section 80 of the Act with a view to entrust the powers of search and seizure, etc., to a Police Officer not below the rank of Deputy Superintendent of Police and for that purpose necessary provisions have been included in section 78 by substituting the same vide clause 37.
Clause 40.— This clause proposes to insert a proviso to section 81 so that the rights conferred under this section shall be supplementary to and not in derogation of the provisions of the Copyright Act or the Patents Act.
Clause 41.—This clause seeks to make amendment in section 82 with a view to declare the Chairperson, Members, officers and employees as public servants.
Clause 42.—This clause seeks to amend section 84 with a view to make consequential changes.
Clause 43.—This clause seeks to insert three new sections 84A, 84B and 84C with a view to empower the Central Government to prescribe the modes and methods of encryption for secure use of electronic media and for promotion of e-governance and e- commerce applications. Further it provides that abetment of and attempt to commit any offence shall also be punishable.
Clauses 44 and 45.—These clauses seek to make amendments in sections 87 and 90
respectively, which are of consequential nature.
Clause 46.—This clause seeks to omit sections 91 to 94 for the reason that these provisions have become redundant as necessary modifications have already been carried out in the Indian Penal Code and other related enactments.
Clause 47.—This clause seeks to substitute new Schedules for the First Schedule and the Second Schedule so as to provide for documents or transactions to which the provisions of the Act shall not apply. It also enables the list of electronic signature or electronic authentication technique and procedure for affixing such signature to be specified in the Second Scheudule.
Clause 48.—This clause seeks to omit the Third Schedule and Fourth Schedule as consequential to the omission of provisions of sections 93 and 94.
Clause 49.—This clause provides for certain amendments in the Indian Penal Code so as to specify certain offences relating to the computer resource.
Clause 50.—This clause provides for certain consequential amendments in the Indian
Evidence Act pursuant to the changes proposed in the Act.
Clause 51.—This clause provides for amendments in the Code of Criminal Procedure by inserting new section 198B and amending section 320 so as to make certain consequential amendments pursuant to the changes proposed in the Act.
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