Industry welcomes passing of IT Bill

NEW DELHI: The Indian industry has welcomed the smooth passage of the Information Technology Bill, 1999, by the Parliamentarians. Early this week, both Lok Sabha and Rajya Sabha okayed the Bill with voice votes, despite some meek objections from the opposition. The government made 34 amendments to the original draft following the recommendations of the standing committee.

Welcoming the decision of the Parliament, National Association of Software and Services Companies (Nasscom) President Dewang Mehta said, "The IT Bill offers the legal framework so that information is not denied legal effect, validity or enforceability, solely on the ground that it is in the form of electronic records. The IT Act would eliminate barriers resulting from uncertainties over writing and signature requirements and promote legal and business infrastructure necessary to implement e-commerce, spurring the use of the Internet, e-mail and e-commerce. After the passage of the IT Bill, it is expected that e-commerce transactions in 2000-01 may even exceed Rs 2,500 crore, a growth of over 500 per cent. But, adequate guidelines need to be framed in consultation with the industry so that not only cyber crimes are stopped, but also to make sure that the police do not misuse their powers while ensuring proper implementation of the Act."

Both Nasscom and MAIT had strongly opposed the two contentious clauses (73 A and B). One made it mandatory for cyber cafes to maintain a record of all their surfers as well as the sites visited by them. Failure of compliance was tantamount to an offence and the concerned people were liable on conviction to imprisonment or fine. The other clause said that all sites hosted in India be compulsorily registered.

Commenting on Clause 79, which gave the police powers to search a cyber café without warrant, MAIT Director Vinnie Mehta said, "It could create a psychological or say entry barrier with people as they might then abstain from going to cyber cafes. The government is trying to create an ideal atmosphere through the law. However, we should look at the positive aspects of the Bill. There was no legal framework till now. Now that we have it, the next step is to create an infrastructure in sync with the progress we have made."

NIIT chief operating officer P Rajendran remarked, "The speedy enactment of the IT Bill is a clear signal to the industry that India is now getting ready to let go of many legacies of the past and move into the global e-commerce arena with determination. It provides the basic framework for giving legality to digital records and signatures, which will push e-commerce in India into the mainstream. Business opportunities for the IT community will increase with this Bill. It would also mean cross-functional training within the government–the law enforcement, the judiciary and the like."

Radix Infotech managing director Ajit Sirohi said, "A positive aspect is that a number of transactions would be facilitated through credit cards. The negative aspect is that it will breed criminality on the Net. The sites, which facilitate credit card transactions on the Net, should have adequate encryption. Otherwise the entire exercise would prove futile. I strongly recommend that there should be a special court for implementing the Bill's recommendations. It should be made mandatory that no credit card transactions be allowed without digital signatures."

According to Softmart Solutions CEO Alok Gupta, it was a step in the right direction. "Though Clause 79 is meant to curb cyber crimes, it would allow the authorities to frisk anyone possessing a computer. Earlier, it was always possible for a person who had ordered for some goods on the Net to withdraw his order. He could always say that he never ordered. With digital signature, it would now be possible to take such a person to court and demand payment for goods ordered on the Net."

Infotechnics CEO Sanjeev Bhavnani also generally welcomed the IT Bill. However, he said that not much of the reactions and requirements of the IT people were taken into account. "The laws on cyber crimes are sure to be a deterrent, but not a curb. As with all these laws in the West, they will have no impact on the increasing number of cyber crimes. Digital signatures and e-transactions have got a legal validity with this Bill, which will boost e-commerce in the country. When we take into consideration the age group of the people who are using the Net for transactions, there won't be a barrier as far as credit cards are concerned. But problems may arise regarding the actual value of transactions that can be conducted on the Net and with regards to global transactions. Probably we will see a reversed IT Bill."