Two Steps Forward, But...

A national law means little in a cyber world, say Srinjoy Banerjee and Rohini Rangachari

Bureaucracy is a giant mechanism operated by pygmies

Honore de Balzac

The Information Technology Bill has received legal sanction from Parliament, thereby making India the second country in Asia to have a Cyber Laws Act. Great, but is it actually beneficial to daily Internet users? Or is it just a way in which the government can regulate the sphere of technology and e-commerce?

Currently, there are two different legal models of e-authentication developing worldwide. First is based on the American Uniform Electronic Transactions Act and the UNCITRAL model laws of e-commerce. This is a minimal legal framework that is flexible and free from government control.

 

The second is on a greater degree of government regulation, whereby a government lays down certain requirements for e-authentication. If these requirements are not complied with, the electronic contracts are not seen as binding.

Divided into 13 chapters and four schedules, the Indian IT Act provides for a greater degree of governmental control. It aims at greater security for online transactions by providing for digital signatures, thereby facilitating communication, and admitting e-records as evidence in cases of dispute. It seeks to reduce the number of cyber crimes such as hacking, illegal access to computer networks, the spread of viruses and e-forgery. The IT Act further seeks to establish a cyber regulations appellate tribunal. In short, the Act envisions the ultimate e-governance.

Interestingly, the primary objectives of our IT Act point to the benefits of regulating e-transactions without underscoring the disadvantages of over regulation. Every citizen has a right to make free and informed decisions. However, the provisions of the IT Act seem to grant wide powers to the central government, thereby impinging on decision making of contracting parties.

For example, Clause 5 states,