INDIA INDIAN CABINET AMENDS IT ACT FOR DATA PROTECTION http://www.sda-india.com/sda_india/psecom,id,102,site_layout,sdaindia,news,12918,p,0.html

The Union Cabinet has given approval to the amendments proposed in the Information Technology Act, 2000. The move comes in the wake of concerns raised in the IT industry regarding inadequacy of data protection and privacy laws in the country, especially in the light of allegations by a UK-based TV channel about datatheft from Indian call centers.

The proposals will be presented to India's full legislature for approval during the upcoming winter session. One proposed amendment to India's IT Act of 2000 would make companies doing business in India responsible for computer crimes committed by their employees if they're found to have lax security procedures. Another would increase fines for unauthorised disclosure of personal data from about USD 2,000 to about USD 10,000 for each instance.

Additionally, companies that are found guilty of such disclosures would be forced to pay victims of identity theft compensatory damages of up to roughly USD 220,000. Presently, liability for such crimes is limited to the individuals who commit them.

Executives representing India's multibillion-dollar technology and business services outsourcing industry welcomed the move but caution that it will be up to the country's courts to ensure that the new laws work to reduce data theft and other electronic crimes.

"The deterrent will come not from the new laws themselves, but when we start to see indictments and convictions," says Sunil Mehta, Vice President of the Indian trade group National Association for Software and Services Companies.

Welcoming the government’s decision, the National Association of Software and Services Companies said, "We have been working closely with the government to evolve these recommendations that will further strengthen the Indian IT Act, 2000, and secure the legislative framework for security practices in the Indian business process outsourcing industry. We understand that these amendments have incorporated most of the recommendations, and are hopeful that this will lead to better handling of cyber crime by enforcement authorities."

"The proposed amendments in the Act are aimed at checking incidences of data pilferage, which threaten India’s image as an outsourcing destination," said Tanmoy Chakrabarty, vice-president and head of global government industry group of Tata Consultancy Services.

Arvind Kumar, IT Secretary, Maharashtra Government says, "This ensures that corporates are no longer lax when it comes to data security and related issues. They will have to become more stringent internally and become increasingly responsible to the government."

"The amendments will chiefly impact the BPO/KPO industry. The IT industry will be generally unaffected by these changes," asserts Zoeb Adenwala, CTO, Pidilite.