Govt Likely To Propose INR 500 Cr Penalties For Digital India Bill Violations

SUMMARY

The proposed bill is likely to grant government agencies the authority to monitor and gather traffic data across digital systems

The Bill's potential penalty of up to INR 500 Cr for non-compliance with obligations will be determined by Digital India Authority, responsible for addressing grievances

The proposed bill is expected to comprehensively identify and define various types of digital harm that victims may encounter

The Indian government is considering the introduction of penalties reaching up to INR 500 Cr for breaches of the provisions within the Digital India Bill. The anticipated bill is expected to empower government agencies with the ability to observe and collect traffic data across digital platforms to bolster cybersecurity, a PTI report said.

Fines for non-compliance could reach up to INR 500 Cr, with the Digital India Authority being tasked with determining the amount and resolving grievances.

Before reaching a final decision on the penalty amount, the authority will need to evaluate several factors, including the severity of the breach, the number of users impacted, and the duration of the impact on individuals.

Under the proposed Act, disputes are unlikely to fall under the purview of civil courts, and entities dissatisfied with the resolutions provided by the Digital India Authority may have the option to challenge them before the Supreme Court.

According to the report, the proposed bill is expected to comprehensively identify and define various types of digital harm that users may encounter.

It is also anticipated that the bill will provide clear definitions for offences such as doxing, cybersquatting, astroturfing, dog-whistling and others, with provisions for penalties to address and deter these activities in the digital realm.

The government is looking to replace India’s existing digital law, the Information Technology (IT) Act, 2000, with the Digital India Act. Union Minister of State for Electronics and IT Rajeev Chandrasekhar previously said that the proposed Act aims to help develop India as a globally competitive innovation and entrepreneurial ecosystem.

The government has repeatedly highlighted the need to make the internet open, safe, trusted and accountable. MeitY claims that the Digital India Act will help in attaining these goals and will address the new challenges in today’s fast-evolving and growing internet space.

In March, MeitY released its presentation on the proposed Digital India Act, 2023, which emphasised the “urgent need for a specialised and dedicated adjudicatory mechanism for online civil and criminal offences”.