Internet And Law in

INDIA

DEPARTMENT OF LAW

UNIVERSITY OF RAJASTHAN

FIVE YEAR LAW COURSE

SUBMITTED BY: UNDER SUPERVISION OF:

JAI PRAKASH MEENA MS. MEENAKSHI DUTTA

ROLL NO. 25 (GENERAL ENGLISH-I)

SEMESTER - I

1
CLASS B.A.LL.B.

#TABLE OF CONTENTS #

Contents

Page No.

I. Certificate 3

II. Preface 4

III. Acknowledgement 5

IV. Research Methodology 6

1. Introduction 7

2. Internet in India 8

3. Cyber crime in India 9

4. India and Cyber law 11

4.1 The Information Technology Act ,2000 12

4.2 The Information Technology (Amendment) Bill, 2008 14

5. Conclusion 15

6. Hypothesis 16

7. Bibliography 17

2
 I. CERTIFICATE

This is to certify that Mr. JAI PRAKASH MEENA is a student of Five Year
Law Course Semester-I, Department of Law, University of Rajasthan, Jaipur.
He has written the project entitled “Internet And Law in INDIA”

under my supervision and guidance.

It’s further certified that the candidate has made an appreciable

attempt on the subject mentioned above.

Dr. MEENAKSHI DUTTA

Supervisor
JAIPUR.

3
 II.PREFACE

India ranks fifth among countries reporting the maximum number of cyber
crimes, the latest report released by Internet Crime Complaint Centre of the
United States has said.

The US report analysing internet crime in 2008 compiled by experts from FBI,
Internet Crime Complaint Centre (IC3) and other agencies shows the number of
complaints from victims shot up by almost a third since 2007 with the total
touching 275,284 cases in which about USD 265 million were lost globally.

Cyber crimes record 50 percent rise in India .The United States led the tally of
victims' complaints, while India remained at fifth by reporting 0.36 per cent of
the global complaints received at IC3 which was about 1,000 complaints, the
data said.

Majority of the fraudsters on the information highway, this year, resorted to the
trick of selling products online but not delivering it to buyers who had already
made payments.

It remained the most adopted method to cheat during the year with 33 per cent
of internet crimes of this nature being reported, according to the report.

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 III.ACKNOWLEDGEMENT
I would like to express my gratitude to those who generously took initiative and

helped in the successful completion of this project. I thank to them for their

inspiration & guidance towards preparation of this report.

I am highly indebted and my profound gratitude to Prof.G.S.Karkara (Director),

Five Year Law Course, Dept. of Law, University of Rajasthan, Jaipur,who
enabled me to make a project, and provided me their stimulus of writing this
report on Internet And Law in INDIA. I am grateful to Dr. MEENAKSHI
DUTTA faculty FYLC, Jaipur, for her valuable advice, continuous support &
guidance through various useful discussions at different times during the tenure
of making this project and her co-operation led to great learning experience to
me.

My humble thanks to all my colleagues and classmates of my college, who

rendered their whole hearted co-operation and wonderful response.

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 IV. Research Methodology

In this project I went through various books in the

library, internet websites like Wikipedia, Google search;
discussed the project with teachers, classmates &
friends. I also discussed it with various experts of the
subjects. The teacher’s guidance was like a Beacon’s
light and is unforgettable.

6
 1.INTRODUCTION

India is fast emerging as a major hub of cybercrime as recession is driving

computer-literate criminals to electronic scams, claimed a study by researchers
at the University of Brighton.

Titled 'Crime Online: Cybercrime and Illegal Innovation', the study states that
cybercrime in India, China, Russia and Brazil is a cause of "particular concern"
and that there has been a "leap in cybercrime" in India in recent years, partly
fuelled by the large number of call centres.

"Russia, China and Brazil are world leaders in cybercrime, with groups and
individuals in India powering up to compete. Yet companies in Europe and the
US are increasingly moving IT functions and software development tasks to
India, Brazil, Russia and Eastern Europe in a bid to draw on their good IT skills
and lower wages", says Professor Howard Rush who lead the study.

Although cybercriminal activity remained low in India compared with other

emerging economies, the report says that "there has been a leap in cybercrime in
recent years".

Reported cases of cases of spam, hacking and fraud have multiplied 50-fold
from 2004 to 2007, it claims.

"One recent report ranked India in 2008 as the fourteenth country in the world
hosting phishing websites.

Additionally, the booming of call centres in India has generated a niche for
cybercriminal activity in harvesting data", the report maintained.

The report also says that cybercrime is a global industry but the combination of
poor economic opportunities and high skills is driving many developing regions
to surface as major players in cybercrime.

Across the world, the report predicts that cybercrime will continue to offer high
rewards and low risks both to organised and to opportunistic criminals. New
players are emerging in countries like India and Brazil and as international
financial networks acquire a greater global reach, such opportunities will
multiply, it said.

The international response to cybercrime has been weak, given the scale of the
problem. There are no signs of preparation to withstand a future cybercrime
onslaught, it says.
7
2.Internet in India
The Internet revolution seems to be in full swing, but is India really plugged
into the global community it represents? Maybe yes, maybe no.

As the Internet spins a web of interconnectivity around the globe, as it grows

literally by the hour, India is struggling, not to catch up but to keep from falling
further and further behind.

Inside India, things do seem to be improving. Five years ago there was limited
Internet access but only in a few major cities, all in the hands of the
government. VSNL, the agency responsible for Internet activities, and the DOT
(Department of Telecommunications) provided an agonizingly erratic
connectivity, with miserly bandwidth and far too few phone lines. Connection
rates ran as low as 5% (for every 20 dialups you might get connected once) and
users were frequently cut off. And the rates for this pathetic level of service
were among the highest in the world. Domestic users paid about $2 per hour,
and lease lines, for the few companies that could afford them, ranged over
$2000 per month for a 64 Kpbs line. By the end of 1998, after three years of
government monopoly, there were barely 150,000 Internet connections in India.

Today (midyear 2000) the government monopoly is largely over. Dozens of

small to large Internet Service Providers have set up shop, triggering a price war
and an improvement of service. Users are now estimated at over 2 million, with
a growth predicted to reach 50 million in the next five years. Small Internet
kiosks have set up even in small towns, and the governments, both State and
Central are pushing for growth in the Internet sector. Internet is the new
buzzword. The many small tutorial colleges that pushed computer software
courses of variable quality are now in a hardsell scramble to push Net related
content. The Internet represents the new wealth frontier for the middle classes -
a good salary and a clean job, and for a few, the chance to go abroad.

There has been a great increase in Indian content on the Internet. Many net
entrepreneurs have been quick to realize the huge potential of the global
market. Initially, most sites targeted the global Diaspora of Overseas Indians
who had more access to the Internet, not to mention the credit cards that drive
Net commerce. But there is a growing realization that the Net can reach the
large and wealthy Indian Middle class. This group is rapidly plugging into the
Net (still out of range for most people here) and there is increased use of credit
cards.

Additionally, Business to Business (B2B) transactions are on the increase

8
though there is no accurate estimate of the current or projected volumes. For
Indian businesses interested in an overseas market the Net provides an efficient
medium of communications - a factor that has retarded a great deal of trade in
the past. Email and web sites are available 24 hours a day. And for the large
and growing software industry, the Internet offers the ability to reach a client,
respond to problems on a real time basis, and transfer products instantly with
the click of a mouse. India exports billions of dollars of software annually, and
the industry is growing rapidly. The Internet represents so much potential for
India, and the demand for efficient Internet infrastructure is growing
rapidly. This is where India has been failing. The demand has not yet been met
efficiently and this represents an enormous barrier to business and societal
development.

Even the government, which has monopolized infrastructure development until

recently, has recognized it must not hold back this development. They have
opened the industry to private entrants and promised support. In practice,
though, the vast bureaucracies that implement (theoretically) the government
programs have moved sluggishly and ineffectively. For instance, the private
ISPs that were allowed were initially required to acquire their bandwidth from
VSNL which wanted a country wide monopoly on this lucrative sector. The
result, new users signing up competed for increasingly limited bandwidth. Now
the ISPs have been allowed to establish their own gateways but the effect has
not yet been felt extensively. The DOT, responsible for providing phone lines
to ISPs lagged way behind and the new providers are often left with far too few
lines to service the increased demand. Lease lines are reduced, though still very
expensive - approximately $1000 per month for a 64 Kpbs line.

3.INTERNET AND CRIMES IN INDIA

Internet Crime in India has begun, although still at a nascent stage. It is wise
to be aware of the dangers which Indian children may encounter & what
precautions you can take.

India ranks fifth among countries reporting the maximum number of cyber
crimes, the latest report released by Internet Crime Complaint Centre of the
United States has said.

9
Cyber crimes record 50 percent rise in India

India is fast emerging as a major hub of cybercrime as recession is driving

computer-literate criminals to electronic scams, claimed a study by researchers
at the University of Brighton.

Titled 'Crime Online: Cybercrime and Illegal Innovation', the study states that
cybercrime in India, China, Russia and Brazil is a cause of "particular concern"
and that there has been a "leap in cybercrime" in India in recent years, partly
fuelled by the large number of call centres.

Although cybercriminal activity remained low in India compared with other

emerging economies, the report says that "there has been a leap in cybercrime in
recent years".

Reported cases of cases of spam, hacking and fraud have multiplied 50-fold
from 2004 to 2007, it claims.

"One recent report ranked India in 2008 as the fourteenth country in the world
hosting phishing websites.

Additionally, the booming of call centres in India has generated a niche for
cybercriminal activity in harvesting data", the report maintained.

The report also says that cybercrime is a global industry but the combination of
poor economic opportunities and high skills is driving many developing regions
to surface as major players in cybercrime.

Across the world, the report predicts that cybercrime will continue to offer high
rewards and low risks both to organised and to opportunistic criminals. New
players are emerging in countries like India and Brazil and as international
financial networks acquire a greater global reach, such opportunities will
multiply, it said.

The international response to cybercrime has been weak, given the scale of the
problem. There are no signs of preparation to withstand a future cybercrime
onslaught, it says.

"Countries do face problems responding collectively in an appropriate and

effective manner. The scale and nature of the problem is genuinely transnational
- credit card details stolen in the UK can be processed in Malaysia and used in
Australia, while Indian call centres are thought to be a source for insider fraud",
it says.

10
4.INDIA AND CYBER LAW
Need of cyber law:-

When Internet was developed, the founding fathers of Internet

hardly had any inclination that Internet could transform itself into an all
pervading revolution which could be misused for criminal activities and which
required regulation. Today, there are many disturbing things happening in
cyberspace. Due to the anonymous nature of the Internet, it is possible to
engage into a variety of criminal activities with impunity and people with
intelligence, have been grossly misusing this aspect of the Internet to perpetuate
criminal activities in cyberspace. Hence the need for Cyberlaws in India.

Importance of cyber law:-

Cyberlaw is important because it touches almost all aspects of transactions and

activities on and concerning the Internet, the World Wide Web and Cyberspace.
Initially it may seem that Cyberlaws is a very technical field and that it does not
have any bearing to most activities in Cyberspace. But the actual truth is that
nothing could be further than the truth. Whether we realize it or not, every
action and every reaction in Cyberspace has some legal and Cyber legal
perspectives. CYBER LAW is seen as an essential component of criminal
justice system all over the world. The same applies to cyber law of India as
well. In the Indian context, the Information Technology Act, 2000 (IT Act,
2000) is the cyber law of India. It is the exclusive law in this regard and is under
the process of amendments.

India has done a good job by enacting a cyber law. It is the 12th country of the
world having a cyber law. It covers areas like e-governance, e-commerce, cyber
contraventions and cyber offences. However, some critics and cyber law experts
have questioned the strength of IT Act, 2000. It would be prudent to analyse the
exact position that applies to the Indian cyber law.

4.1 TThe Information Technology Act, 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 Bankers' Books Evidence Act, 1891 and the Reserve Bank of India
Act, 1934 and for matters connected therewith or incidental thereto.
11
Information technology Act 2000 consists of 94 sections segregated into 13
chapters. Four schedules form part of the Act.

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-cased 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

. Essence of the Act

Information Technology Act 2000 addressed the following issues:

1. Legal Recognition of Electronic Documents

2. Legal Recognition of Digital Signatures
3. Offenses and Contraventions
4. Justice Dispensation System for Cybercrimes

Aims and Objectives of the Information Technology Act, 2000

The preamble of the Information Technology Act, 2000 reads An Act to provide
legal recognition for transactions carried out by 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.
The aims and objectives of the Act make it:
(a) a facilitating Act,
(b) an enabling Act, and
(c) a regulating Act
(a) A Facilitating Act
The Information Technology Act, 2000 is a facilitating Act as it facilitates both
e-commerce and e-governance. Interestingly, the UNCITRAL Model Law of E-
commerce on which this Act is based has made no reference to e-governance.
But it was the collective wisdom of the legislature, which saw the necessity of
introducing concepts like e-governance in this Act. In
fact, the entire Chapter III of the Act is devoted to e-governance and
egovernance practices. There are 7 sections in the aforesaid Chapter III of the
Act, from section 4 to section 10, which deal with e-governance issues. These
sections form the basic law related to electronic governance rights, which have
been conferred to the persons and the Government(s) both Central and State
Governments. It is applicable to the whole of India, including the State of
12
Jammu and Kashmir. It is important to understand that the Information
Technology Act, 2000 is the first enactment of its kind in India, which grants e-
governance rights to the citizens of India.

(b) An Enabling Act The Information Technology Act, 2000 is an enabling Act
as it enables a legal regime of electronic records and digital signatures. That is,
in order to be called legally binding all electronic records, communications or
transactions must meet the fundamental requirements, one authenticity of the
sender to enable the recipient (or relying party) to determine who really sent the
message, two messages integrity, the recipient must be able to determine
whether or not the message received has been modified en route or is
incomplete and third, non-repudiation, the ability to ensure that the sender
cannot falsely deny sending the message, nor falsely deny the contents of the
message.The Act provides for Digital signatures12, which may be considered
functional equivalent to physical world signatures capable of meeting all the
fundamental requirements, like authenticity of the sender, message integrity and
non-repudiation. Digital signature is a misnomer. It does not mean
scanning the handwritten signatures electronically. In fact by applying digital
signatures one may actually transform an electronic message into an
alphanumeric code. It requires a key pair (private key for encryption and
public key for decryption) and a hash function .

4.2 The Information Technology (Amendment)

Bill, 2008

The Government of India has proposed major amendments to ITA-2000 in form

of the Information Technology (Amendment) Bill, 2006 which have been
passed by the Cabinet Committee of the Government of India and are ready for
being placed before the Indian Parliament for discussion.
The Bill has since been passed in the Parliament on December 23, 2008. The
Bill has now been renamed as Information Technology (Amendment) Bill, 2008
as it is not the 2oo6 Bill that has been approved as it is but a totally different
Bill has been approved by the Rajya Sabha and Lok Sabha. It is awaiting assent
of the President and formal notification. The Bill as passed has many changes
from the earlier draft indicated in the previous paragraph and incorporates the
13
recommendations made by the Parliamentary Standing Committee. In the Indian
context till a Bill is finally notified by the Executive, it remains a Bill only.
Thus, till the government of India notifies it, the old Information Technology
Act, 2000 would govern the Indian cyber law. IT amendment Bill was signed
into an Act by the President of India on February 5 2009, through a Gazette
Notification. Government of India is now in the process of framing the rules
which are required under the amendments. On completion of this exercise, the
date of effect of the amendments would be notified which completed on the end
of April 2009.

5. Conclusion

14
From the research done in this project it’s no wrong in concluding that the IT
Act,2000 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 meth ds 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 Bankers'.

Some more sections should be insert in IT Act 2000

For make it more effective.however, This Act have special sections that help in
to reduce the cyber crime cyber crime.

6. Hypothesis

15
I have noticed that this industry which is at present in its peak as well as

giving tough competition to the other industries that’s IT sector. It can be

said as the most promising industry of the present as well as of future.

This project will help us to evaluate how has this Act struggled from

cyber crim and reached at this stage and also its importance at global

level. I had tried my best to put the reader’s interest in this and so to

provide them with best of my knowledge.

7. Bibliography
16
1. Books

A Practiical Approach To CYBER LAWS By Prof.

C.D. Chakraborty

2. Internet

a) www.wikipedia.org.com

b) www.google.com

c) www.manupatra.com

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