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8/7/2019 data protection and privacy-india http://slidepdf.com/reader/full/data-protection-and-privacy-india 1/17        Table of contents   1.  Introduction--------------------------------------------------------------2  2.  Data and data processing------------------------------------------------5  3.  Data protection a nd the right to information-----------------------6  4.  Conclusion----------------------------------------------------------------- 16                                

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  Table of contents

  

1. Introduction--------------------------------------------------------------2 2. Data and data processing------------------------------------------------5 3. Data protection and the right to information-----------------------6 

4. Conclusion-----------------------------------------------------------------16   

                        

     

 

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 CHAPTER 1: INTRODUCTION

   ¶Inform

ation·

as

aterm

 h

as

been

 derived

 from

 the

Latin

w ords

¶Form

ation·

and

¶Form

a· 

w hich means giving  shape to something and forming a pattern, respectively . Information 

adds something  new to our awareness and removes the v agueness of  our ideas. Section 2(f) 

of The R ight to Information Act, 2005 defines w hat information is. It provides that: 

 

"information" means any  material in any  form, including  records, documents, memos, e-

mails, opinions, advices, press releases, circulars, orders, log books, contracts, reports, papers, 

samples, models, data material held in any  electronic form and information relating  to any  

priv ate body w hich can be accessed by a public authority  under any  other law for the time 

being  in force; 

 

This legislation was born out of  the liberal interpretation given to Article 19( 1) ( a) of  the 

Constitution w hich guarantees the fundamental rights to free speech and expression. The 

prerequisite for enjoying  this right is know ledge and information. The absence of authentic 

information on matters of public interest w ill only  encourage w ild rumours and speculations 

and avoidable alleg ations ag ainst individuals and institutions. Therefore, the R ight to 

Information becomes a constitutional right, being an aspect of  the right to free speech and 

expression w hich includes the right to receive and collect information. This w ill also help the 

citizens perform their fundamental duties as set out in Article 51A of  the Constitution. A

fully  informed citizen w ill certainly be better equipped for the performance of  these duties.

Thus, access to information w ould assist citizens in fulfilling  these oblig ations.

As no right can be absolute, the R ight to Information has to have its limitations. There w ill 

always be areas of  information that should remain protected in public and national interest.Moreover, this unrestricted right can have an adverse effect of an overload of  demand on 

administration. So the information has to be properly, clearly  classified by an appropriate 

authority .

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The usual exemption permitting Government to w ithhold access to information is generally  

in respect of  the these matters: ( 1) International relations and national security; (2) Law 

enforcement and prevention of  crime; ( 3) Internal deliberations of  the government; ( 4) 

Information obtained in confidence from some source outside the Government; (5) 

Information which, if disclosed, would violate the privacy of an individual;  (6) Information, particularly  

of an economic nature, w hen disclosed, w ould confer an unf air adv antage on some person 

or subject or government; (7) Information w hich is covered by  leg al/professional privilege, 

like communication betw een a leg al advisor and his client and (8) Information about 

scientific discoveries and inventions and improvements, essentially  in the field of w eapons.1  

The submitted project w ork  deals w ith an area that can very w ell be associated w ith the right 

to priv acy  of a person. We do not have a separate law to obtain personal information related to the 

requester himself. Right to Information Act is being used for both purposes, i.e. to obtain personal 

information as well as non-personal information, which sometimes creates confusion. In USA, Priv acy Act 

is used to obtain personal information and Freedom of  Information ( FOI) Act is used for 

obtaining  other information. Similarly  in UK , Data Protection Act is used to obtain personal 

information and Freedom of  Information Act is used for obtaining  other information.

 

Separate Data Protection or Priv acy  law is necessary  to obtain personal information related 

to the requester herself and at the same time to protect unnecessary  disclosure to others. The 

project deals w ith data protection and the leg al regime relating  to it in the EU and India.

 

Data protection is nothing but maintaining the secrecy, integrity and authenticity of data relating to a person 

or otherwise, which is very important in international transactions and also for the person himself. Bank  

account details, passport and visa portfolios, balance sheet of a company, solvency  status of  

a person etc. are all details w hich need protection w hile processing  or transfer in 

transnational jurisdiction. There may be other numerous f acts and figures about entities that 

require adequate protection and secrecy and therefore, a strong  leg al regime protecting  the 

same is the need of  the hour ow ing  to the w hooping  increase in transnational transactions.

The project tries to look  into the status of  law in EU and India and analyses the same to 

bring  out the positive and neg ative points.

 1 http://www.rrtd.nic.in/RIGHT%20TO%20INFORMATION.html

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Unlike the US and EU there is no specific enactment on Data Protection in India. How ever, 

the Indian government is under increasing pressure from business process outsourcing  

operations and call centers in India that handle large volumes of  data from the U.S. and 

Europe to pass a Data Protection Law. The Ministry  of  Information Technology and 

National Association of Software and Service Companies ( NASSCOM) are in the process of  

drafting  legislation to amend the country·s existing  Information Technology Act of  2000, 

w ith the intention of bringing  the data protection regime up to the standard required by  the 

US and the EU.

 

The grow th of  the computer industry  in the last tw o decades has been amazing . Along w ith 

this grow th, accompanied an increase in the quantity and av ailability  of  data stored by priv ate companies and the Government almost in all the countries of  the w orld including  India. The 

ease w ith w hich information is transmitted and stored has created an information market in 

w hich personal data is bought and sold to v arious groups. The key  to the information age is 

the sw ift transfer and storage of  digital data. For marketeers and corporations some of  the 

most important data traded involves information about our personal histories. W hether it be 

buying  habits, driving  records, medical records or credit reports, this information is a hugely  

v aluable commodity . As these companies go from source to source, collecting as much 

pertinent personal information as possible, citizen·s priv acy  is being  slow ly  eroded.

 

There must, therefore, certainly be a point w here society  draw s the line and declares certain 

pieces of  information off  the market. There is no doubt that w e cannot protect all data, bit 

by bit, byte by byte, but something  must be done. Much of  this problem arises from the f act 

that there is little or no leg al protection of personal data and the R ight to Information Act is 

not sufficient to protect such priv ate and personal data w hich is w hy  the government is 

considering  the passing  of a data protection law w hich w ill fulfil such objective.

   

CHAPTER 2: DATA and DATA PROCESSING 

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Data in everyday  language is a synonym for information. In the exact sciences there is a clear 

distinction betw een data and information, w here data is a measurement that may be 

disorg anized and w hen the data becomes org anized it becomes information. Data may  relate 

to reality, or to fiction. Data about reality  consists of propositions2. A large class of  

practically  important propositions are measurements or observ ations of a v ariable. Such 

propositions may  comprise numbers, w ords or images3.

 

According to Article 2(a) of the Directive 95/46/EC of the European Parliament and

of the Council of 24 October 1995 on the protection of individuals with regard to the

processing of personal data and on the free movement of such data, ¶personal data· 

shall mean any  information relating  to an identified or identifiable natural person ( ¶data

subject·); an identifiable person is one w ho can be identified, directly  or indirectly, in particular by  reference to an identification number or to one or more f actors specific to his 

physical, physiological, mental, economic, cultural or social identity .

 

Today, possibly  the largest amount of  recorded personal information is in the form of  

government records. From birth to death, the Government keeps track  of all the major 

events in our lives. R ecords are kept for driver·s licences, marriage licences, property  

ow nership, criminal activities, tax information, voter registration, and much more. Some of  

this information is confidential but most of  it is stored in the form of public records and 

´public recordsµ are just that public.4 Therefore there is a strong  need for a law w hich 

governs those information w hich is personal to an individual.

 

  

CHAPTER 3: DATA PROTECTION and The RIGHT TO INFORMATION

 

 2

In common philosophical language, a proposition is the content of an assertion, that is, it is true-or-falseand defined by the meaning of a particular piece of language. The proposition is independent of the

medium of communication.3

http://en.wikipedia.org/wiki/Data#Meaning_of_data.2C_information_and_knowledge4 Faizan Mustafa, Privacy Issues in Data Protection : National and International Laws, (2004) PL WebJour 

16

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W e live in a w orld of  international data transmissions. Digitalization of  information, 

combined w ith continuous and dazzling  technological developments, has increased the flow 

and application of  data. Information sharing  now takes place on an international scale and 

involves a tremendous amount of  data referring  to individuals5. Among  the critical 

regulatory  challenges raised by  such international information flow s is how to protect 

individual privacy. In Europe, w here this issue receives the most concerted attention in 

the w orld, the response is found in ´data protection law.µ This term refers to the leg al 

structures that attempt to regulate know ledge and concealment of an individual·s personal 

information6.

 Also, the grow th of  e-commerce requires consumer confidence, and priv acy  is a key  

requirement in building  online consumer confidence. An increasing  number of  consumers 

are concerned w ith how their personal information is used in the electronic marketplace, and 

many  consumers w ould rather forgo w eb-provided information and products than provide a

w ebsite their personal information w ithout know ing  that site·s information practices7.

According  to the results of a Business W eek  survey  released in 1998, consumers not 

currently  using  the Internet ranked concerns about personal information and 

communication priv acy as the foremost reason they  have stayed off  the Internet8. These 

findings suggest that effective and meaningful consumer priv acy protections need to be 

implemented if  the electronic marketplace is to grow significantly . Otherw ise, consumers w ill 

remain wary  of  eng aging  in electronic commerce, and this new marketplace w ill f ail to reach 

its full potential.

DATA PROTECTION and THE EUROPEAN UNION  

 5

Reinhard Ellger, Der Datenschutz im grenzüberschreitenden Datenverkehr , 108-29 (1990). Ellger finds

that the most intensive transborder data flows occur in the following areas: (1) personnel departments; (2)banks, insurance companies, credit card companies, and credit bureaus; (3) direct marketing; (4) airlines,

travel agencies, and other business involved in tourism; (5) companies that seek to deliver goods to or 

otherwise trade with international customers; and (6) within the public sector: police, customs, tax

departments, and public pension agencies6

Paul M. Schwartz, EUROPEAN DATA PROTECTION LAW AND RESTRICTIONS ON 

INTERNATIONAL DATA FLOWS , 80 Iowa L. Rev. 471, cited from www.westlaw.com  7

Louis Harris and Associates, Inc. and Dr. Alan F. Westin, Commerce, Communications, and PrivacyOnline, A National Survey of Computer Users, 20-21 (1997).

8 Business Week/Harris Poll: Online Insecurity, BUSINESS WEEK, Mar. 16, 1998, at 102.

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On July  25, 1995, the European Union·s Council of Ministers ( ́E.U. Councilµ) formally  

adopted the Directive 95/46/EC of  the European Parliament and of  the Council on the 

protection of  individuals w ith reg ard to the processing  of personal data and on the free 

movement of  such data. W hen enacted in 1995, the Directive was w idely  considered the 

´most important international development in data protection in the last decade.µ Its 

comprehensive public policy approach is based upon ´the premise that priv acy  is a human 

right and data protection is an essential means to protect that right through a coherent and 

enforceable leg al regime.µ9 

 

Generally, the Directive has tw o overall objectives: ( 1) the protection of  information priv acy  

by Member States of  the European Union; and (2) the prevention of  restrictions on the free 

flow of personal information among E.U. Member States, for reasons of priv acy  protection.10 In order to realize these tw o objectives, the Directive comprises a mixture of  

oblig ations for data processors11 that control personal data processing 12, together w ith the 

enforcement of  individuals· rights for those w ho are the subject of  data processing . These 

are reflected in a set of  information priv acy principles set out in Chapter II ( General R ules 

on the Law fulness of  the Processing  of Personal Data) of  the Directive.

 

These principles cover four general areas of  concern: ( 1) data quality, (2) legitimate 

processing, ( 3) rights of  data subject and ( 4) security  of  data. The first principle, data quality, 

has five specific requirements:  

 

( 1) Fairness/Law fulness: Personal data must be ´processed f airly and law fully;µ13  

 9 Graham Pearce & Nicholas Platten, Orchestrating Transatlantic Approaches to Personal Data

Protection: A European Perspective, 22 FORDHAM INT¶L L. J. 2024, 2026 (1999).10 Article 1(2)11 µprocessor¶ shall mean a natural or legal person, public authority, agency or any other body which

processes personal data on behalf of the controller; µcontroller¶ shall mean the natural or legal person,public authority, agency or any other body which alone or jointly with others determines the purposes

and means of the processing of personal data; where the purposes and means of processing are

determined by national or Community laws or regulations, the controller or the specific criteria for his

nomination may be designated by national or Community law.12 µprocessing of personal data¶ (µprocessing¶) shall mean any operation or set of operations which is

performed upon personal data, whether or not by automatic means, such as collection, recording,

organization, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission,dissemination or otherwise making available, alignment or combination, blocking, erasure or destruction.

13 Art. 6(1)(a)

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(2) Purpose Limitation: Personal data must be ´collected for specified, explicit and legitimate 

purposes and not further processed in a way  incompatible w ith those purposes;µ 14  

( 3) R elev ance: Personal data must be ´adequate, relev ant and not excessive in relation to the 

purposes for w hich they are collected and/or for w hich they are further processed;µ15 

( 4) Accuracy: Personal data must be ´accurate and, w here necessary, kept up to date; every  

reasonable step must be taken to ensure that data w hich are inaccurate or incomplete, 

having  reg ard to the purposes for w hich they are collected or for w hich they are further 

processed, are erased or rectified;µ16 and  

(5) Timeliness: Personal data must be ´kept in a form w hich permits identification of  data

subjects for no longer than is necessary  for the purposes for w hich the data w ere 

collected or for w hich they are further processed.µ17  

 The second principle, concerning  the legitimate processing  of personal data, has six 

requirements:  

 

( 1) Consent: Personal data may be processed only  if ́the data subject has given his consent 

unambiguouslyµ; or 

(2) Contract: Personal data may be processed only  if ́processing  is necessary  for the 

performance of a contract to w hich the data subject is party  or in order to take steps at 

the request of  the data subject entering  the contract;µ or 

( 3) Leg al Oblig ation: Personal data may be processed if ́processing  is necessary  for 

compliance w ith a leg al oblig ation to w hich the controller is subject;µ or 

( 4) V ital Interest: Personal data may be processed if ́processing  is necessary  in order to 

protect the vital interest of  the data subject;µ or 

(5) Public Interest/Official Authority: Personal data may be processed if ́processing  is 

necessary  for the performance of a task  carried out in the public interest or in the 

exercise of  official authority  vested in the controller or in the third party  to w hom the data are disclosed;µ or 

 14

Art. 6(1)(b)15

Art. 6(1)(c)16 Art. 6(1)(d)17 Art. 6(1)(e)

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(6) Legitimate Interest: Personal data may be processed if processing  is ´necessary  for the 

purposes of  legitimate interests pursued by  the controller or by  the third party  or parties 

to w hom the data are disclosed, except w here such interests are overridden by  the 

interests or fundamental rights and freedoms of  the data subject w hich require 

protection under Article 1( 1).µ18  

 

The third principle pertains to rights of  the data subject, the person w hose personal data is 

collected and transmitted. This principle secures three rights:  

 

( 1) R ight of Access: Every  data subject has the right to obtain from the controller 

´confirmation as to w hether or not data relating  to him are processed and information at 

least as to the purposes of  the processing, the categories of  data concerned, and the recipients or categories of  recipients to w hom the data are disclosed;µ  

(2) R ight to Correct/Block  Information: Every  data subject has the right to obtain from the 

controller ´the rectification, erasure, or blocking  of  data, the processing  of w hich does 

not comply w ith the provisions of  this Directive, in particular because of  the incomplete 

or inaccurate nature of  the data;µ19  

( 3) R ight to Object: Every  data subject has the right ´to object at any  time on compelling  

legitimate grounds relating  to his particular situation to the processing  of  data relating  to 

him.µ20 

 

The final principle concerns the security  of  the collected or transmitted personal data. The 

Directive requires Member States to ´implement appropriate technical and org anizational 

measures to protect personal data ag ainst accidental or unlaw ful destruction or accidental 

loss and ag ainst unauthorized alteration, disclosure or access.µ21  

 

The Directive specifies v arious mechanisms that aid in the implementation of  these priv acy  principles. It requires that each Member State enact legislation to fully address and 

implement the Directive·s four information priv acy principles. Further, each E.U. Member 

 18

Art. 7(a) ± 7(f)19

Art. 12(1) ± (2)20 Art. 14(a)21 Art. 17(1)

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State must establish one or more public authorities to oversee and enforce priv acy  

protections. The Directive also grants individual rights of  enforcement. The Directive 

requires that individuals be granted the right to seek a judicial remedy  for any breach of a

Member State·s national law reg arding  information priv acy, as w ell as a right to recover 

compensatory  damages. 22 

 

The results of a research conducted by  the Commission shed some light on some of  the 

more interesting  considerations that help to g auge public perception, and the efficacy  of  the 

Directive in making an impact on the personal data markets. For example, the Commission 

found that despite the Directive·s requirement of apparently  high standards of  data priv acy, 

44% of  survey  respondents considered the standards as a minimum protection of  their 

personal data rights. Somew hat paradoxically, 81% of  respondents also considered the level of awareness of  individuals reg arding  data protection rights to be insufficient, bad, or very  

bad. The same investig ation also revealed that although there was a general acceptance 

among businesses of  the need for data protection rights, there seemed to be a general apathy  

towards fulfilling  the oblig ations towards individuals w hen such data protection rights w ere 

exercised.

 

The most publicized, contentious, and onerous ( at least from a non-EU nation perspective) 

provisions contained in the Directive are those that relate to the transfer of personal data to 

so-called ´third countries.µ In essence, the Directive blocks all international transfers of  data

to countries outside of  the EU, w here the ´third country  does not ensure an ¶adequate level 

of protection·.µ23 Findings of adequacy are made by  the Commission, in consultation w ith 

the W orking Party  established under article 29 of  the Directive. Member States have an 

oblig ation to inform the Commission of  countries that do not enshrine such adequate 

protection24.

 

 22 Art. 2323 Art. 2524 Seth P. Hobby, THE EU DATA PROTECTION DIRECTIVE: IMPLEMENTING A WORLDWIDE 

DATA PROTECTION REGIME AND HOW THE U.S. POSITION HAS PROGRESSED, 1 Int¶l L. &

Mgmt. Rev. 155, cited from www.westlaw.com

 

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 DATA PROTECTION IN INDIA 

  India does not currently  have a specific data protection law. Data protection and priv acy are 

given scattered and rather sparse coverage by  existing  law s. The existing  data protection 

law s, are scattered in law s pertaining  to information technology, intellectual property, crimes, 

and contractual relations. Under increasing pressure from BPO operations and call centers in 

India that handle large volumes of  data from the United States and Europe, the Indian 

government is contemplating  the passage of a comprehensive law protecting  data.

 

Until such time as India enacts adequate data protection law s, the current law s in India are 

the only protection offered for data priv acy  violations. Unlike the Directive, w hich imposes 

liability  on each participant w ithin the chain of  command w ho f ailed to protect the sanctity  

of  the data, India·s existing  law s only prosecute those individuals w ho directly  violate law s 

related to computer systems or copyright. Entities are exempt for breaches of  data priv acy, 

unless such a violation was made know ingly . Unlike the Directive, w hich protects data

breaches by  limiting  its collection and use, the Indian law s do not specify  conditions under 

w hich data can be collected and used.

 An analysis of the existing Indian laws is placed below :  1. IT Act of 2000 

Section 43( b) of  the IT Act of  2000, affords cursory  safeguards ag ainst breaches in data

protection. The scope of Section 43( b) is limited to the unauthorized dow nloading, copying  

or extraction of  data from a computer system: essentially  unauthorized access and theft of  

data from computer systems. Section 43( b) is limited in scope, and f ails to meet the breadth 

and depth of protection that the E.U. Directive mandates. The law creates personal liability  

for illeg al or unauthorized acts, w hile making  little effort to ensure that internet service 

providers or netw ork  service providers, as w ell as entities handling  data, be responsible for 

its safe distribution or processing . Furthermore, the liability  of  entities is diluted in Section 

79 of  the Act, w hich inserts ¶know ledge· and ¶best efforts· qualifiers prior to assessing  

penalties.

 

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W ith reg ard to damages av ailable in the event of a breach of  data priv acy, Section 43( b) is 

deficient in that the maximum penalty  for this breach is monetary  compensation in the paltry  

amount of approximately $220,000. The maximum monetary  damages av ailable for a breach, 

w hich can potentially be w orth several times more, is clearly  inadequate in a transnational 

context. The more limited crimes of  computer hacking and tampering are considered 

criminal offenses under the IT Act of  2000: Section 65 offers protection ag ainst intentional 

or know ing  destruction, alteration, or concealment of  computer source code. Section 66, 

w hile offering  no clear language that protects personal data, offers limited protection w hen 

personal data is destroyed, deleted or altered. Both Sections 65 and 66 are punishable w ith 

criminal penalties including  jail time of  up to 3 years .In addition to the protections discussed 

above, Section 72 of  the IT Act of  2000 offers some protection for breaches of  

confidentiality and priv acy . Non-consensual disclosure of  confidential information is punishable by  imprisonment for up to 2 years.

 In contrast to the IT Act of  2000, the E.U. Directive envisions much broader violations 

associated w ith breach of  data security  than does the limited sphere of  the IT Act of  2000.

As described previously, the E.U. Directive provides for protections in the entire chain of  

control of  data and creates systems of  security and associated penalties w ithin the v arious 

stages of  data processing . For instance, the Directive prescribes limits to the collection of  

personal data, requiring  that a purpose for the data collection be articulated. The Directive also requires that data must be obtained by  law ful and f air means and, w here appropriate, 

w ith the know ledge or consent of  the data subject; personal data should be relev ant to the 

purposes for w hich they are to be used, and, to the extent necessary  for those purposes, 

should be accurate, complete and kept up-to-date. A reformation of  the IT Act of  2000 

should encompass the principles contained in the Directive related to limitation of  data

collection, data quality, specified purpose, use limitation, security  safeguards, individual 

participation and accountability 25.

 2. Indian Criminal Laws  

 25 Vinita Bali, DATA PRIVACY, DATA PIRACY: CAN INDIA PROVIDE ADEQUATE PROTECTION 

FOR ELECTRONICALLY TRANSFERRED DATA?, 21 Temp. Int¶l & Comp. L.J. 103, cited from

www.westlaw.com

 

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The Indian criminal law s do not specifically address breaches of  data priv acy . Under the 

existing  Indian Penal Code, liability  for such breaches must be inferred from tangentially  

related crimes. For instance, Section 403 of  the Indian Penal Code imposes criminal penalty  

for dishonest misappropriation or conversion of ́mov able propertyµ for one·s ow n use.

Mov able property  has been defined as property w hich is not attached to anything, and not 

land. Although no jurisprudence has developed on this interpretation, arguably, mov able 

property  encompasses computer-relayed data and intellectual property . W rongful 

misappropriation of  data, or conversion for one·s ow n use may, under this interpretation, be 

punishable as a crime in India.

 In addition, Indian Penal Code Section 405 provides criminal penalties for criminal breach 

of  trust. W hoever, being  in any  manner entrusted w ith property, or w ith any  dominion over 

property, dishonestly  misappropriates or converts to his ow n use that property, or 

dishonestly  uses or disposes of  that property  in violation of any  direction of  law prescribing  

the mode in w hich such trust is to be discharged, or of any  leg al contract, express or implied, 

w hich he has made touching  the discharge of  such trust, or w illfully  suffers any  other person 

so to do, commits ¶criminal breach of  trust.· Section 420 of  the Indian Penal Code may also 

offer some protection for f ailure to adequately protect data. Section 420 pertains to 

dishonest delivery  of property  to a third person.

 The absence of  specific provisions relating  to data protection is clearly  visible in the Indian 

Criminal Law regime.

 3. Intellectual Property Law Protection  

Computer software (including  computer programs, databases, computer files, preparatory  

design material and associated printed documentation, such as users· manuals) have 

copyright protection under Indian law s. Computer programs per se are not patentable, being  

patentable only  in combination w ith hardware. Thus in India, by past practice and under current law s, copyright is the preferred mode of protection for computer software. The 

Indian Copyright Act prescribes mandatory punishment for piracy  of  copyrighted matter 

commensurate w ith the gravity  of  the offense. Section 63B of  the Indian Copyright Act 

provides that any person w ho know ingly  makes use on a computer of an infringing  copy  of  

computer program can be punishable for a maximum of  three years in prison.

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 4. Contractual Relations  

Priv ate contractual terms have been used as a means for filling  the g ap left by  the IT Act of  

2000 and other law s in India. Until a tighter data protection leg al regime is in place, the U.S.

and other countries outsourcing  to India are relying  upon contractual oblig ations to impose 

oblig ations for protecting and preserving  data. There is grow ing  recognition w ithin the out-

sourcing  industry  that contractual oblig ations do not provide the most efficient or effective 

recourse. In the event of a breach of  the security  of  data, getting  effective remedy  under the 

contractual oblig ations is time consuming and often insufficient26.

 

Overall, few incidents of  misuse of  data by  employees of  Indian business service providers 

have arisen to date. How ever, the few that have occurred have set off alarms for both 

American and Indian companies. For example, in June 2005, American business 

outsourcers and their Indian counterparts w ere extremely  concerned w hen Interpol was 

asked to investig ate alleg ations that a 24 ² year - old w orker at Infinity  e-Search, a w eb

marketing  company  in New Delhi, had sold information that he obtained from call center 

w orkers at a BPO company . An undercover British reporter from a London tabloid 

new spaper, The Sun, claimed that the Infinity  e-Search employee sold him Barclay Bank  

account details for 1,000 U.K. customers. The account holders· secret passw ords, addresses, 

phone numbers, and passport details w ere allegedly  sold for 350,000 rupees (INR 350,000), w hich is the equiv alent of around U.S. $8,000. This situation points out the flaw s in having  

sensitive information in the hands of  offshore employees in a developing  country w here the 

temptation may be great to make v ast amounts of  money  in local currency by  selling  

information to unscrupulous buyers, particularly w hen the exchange rate makes the 

purchase cost in the w estern country  relatively  minimal.27  

 

 26  Ibid .27 Deborah Roach Gaut, OFFSHORE OUTSOURCING TO INDIA BY U.S. AND E.U. COMPANIES:

LEGAL AND CROSS - CULTURAL ISSUES THAT AFFECT DATA PRIVACY REGULATION IN 

BUSINESS , 6 U.C. Davis Bus. L.J. 13, cited from www.westlaw.com 

  

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CHAPTER 4: CONCLUSION

 In conclusion, it can be said that in India, the existing  leg al regime in relation to data

protection is not strong and consolidated. W e do not have a separate law to obtain personal information related to the requester himself . R ight to Information Act is being  used for both 

purposes, i.e. to obtain personal information as w ell as non-personal information, w hich 

sometimes creates confusion and creates issues relating  to the priv acy  of  the individuals. The 

regime in EU is much w ide and specific as compared to India. Specific law s in relation to 

data protection are the need of  the hour in the Indian leg al system. The provisions that are 

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currently present are insufficient to match up the standards of  secrecy and protection that 

the other jurisdictions are contemplating and demanding  in the present scenario. For e.g . in 

the EU, the standards set up by  the directive w ith respect to data protection take into 

consideration the purposes for w hich data is required to be processed and transferred, the 

time limit for w hich data w ould be legitimately  required, consent of  the data subject for data

processing and his right to object to such processing  etc. These are provisions that can to a

good extent ensure data protection. The Indian leg al regime should be modified to include 

the above aspects so as to match up w ith the international demands of  data protection. If  it 

is not done, international transactions including  data transfer and processing w ould be 

difficult to be executed in coming  times ow ing  to the high data protection standards 

demanded by  the EU, US and other developed countries.

 Also, it can be concluded that Article 25 of  the EU directive that blocks all international 

transfers of  data to countries outside of  the EU, w here the ´third country  does not ensure an 

¶adequate level of protection· is a very  onerous conditions both for the EU members and the 

developing  countries. This is particularly  so because the determination w hether a particular 

third country  has adequate safeguards for data protection or not is to rest w ith the 

Commission. Therefore, even w hen a third country  has decent level of  safeguards, it may  not 

be able to transact data w ith an EU member, if  the Commission is not subjectively  satisfied 

about the adequacy . This can prove to be am impediment w ith respect to processing and 

transfer of  data across nations involving EU members.

 

 

BIBLIOGRAPHY AND REFERNCES

 

Websites

 y http://righttoinformation.gov .in/ 

y http://www.rrtd.nic.in 

y http://en.w ikipedia.org/ 

y http://www.w estlaw.com 

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y www.google.co.in 

y www.jstor.org  

 

Articles

 

y Faizan Mustaf a, Priv acy  Issues in Data Protection : National and International Law s, 

(2004) PL W ebJour 16 

y Paul M. Schwartz, EUROPEAN DATA PROTECTION LAW AND

RESTR ICTIONS ON INTERNATIONAL DATA FLOWS, 80 Iowa L. R ev . 471, 

cited from www.w estlaw.com  

y Louis Harris and Associates, Inc. and Dr. Alan F. W estin, Commerce, 

Communications, and Priv acy Online, A National Survey  of Computer Users, 20-21

( 1997).

y Graham Pearce & Nicholas Platten, Orchestrating Transatlantic Approaches to 

Personal Data Protection: A European Perspective, 22 FORDHAM INT·L L. J.

2024, 2026 ( 1999).

y Seth P. Hobby, THE EU DATA PROTECTION DIRECTIVE: 

IMPLEMENTING A WORLDW IDE DATA PROTECTION REGIME AND

HOW THE U.S. POSITION HAS PROGRESSED, 1 Int·l L. & Mgmt. R ev . 155, cited from www.w estlaw.com  

y V inita Bali, DATA PR IVACY , DATA PIRACY : CAN INDIA PROV IDE

ADEQUATE PROTECTION FOR ELECTRONICALLY TRANSFERRED

DATA?, 21 Temp. Int·l & Comp. L.J. 103, cited from www.w estlaw.com  

y Deborah R oach Gaut, OFFSHORE OUTSOURCING TO INDIA BY U.S. AND

E.U. COMPANIES: LEGAL AND CROSS - CULTURAL ISSUES THAT

AFFECT DATA PR IVACY REGULATION IN BUSINESS, 6 U.C. Davis Bus.

L.J. 13, cited from www.w estlaw.com