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Media Disinformation on Data Protection Laws in India
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The twin BPO frauds  of Mphasis and Infinity e-Search in quick succession has given raise to a series of discussions on the status of Data Protection Laws in India. Unfortunately several media persons as well as industry persons have gone on record with statements indicating that either there is no data protection laws in India or if it is there, it si grossly insufficient.

The efforts of Naavi.org in clearing the air is a drop in the ocean when NDTVs and Economic Times continue to speak in a different tone.

One of the adverse fall outs of this media publicity is  the formation of international opinion which could be inimical to the reputation of the BPO industry in India. Perhaps this is the raison d'etre for the Sun Report too.

The shrill cry for a new law on "Data Protection" will only proliferate the number of laws int he country applicable for the same offence and will cause more confusion than comfort. If an offence is adequately covered by one law then claiming that there is need for one more is absurd. (I will separately address this issue in a future article..Naavi)

The object of this article is to highlight that the Indian journalists are unnecessarily queering the pitch for a new data protection law where it is not warranted. I want these journalists especially from respected financial papers to first study the law as it exists and then start passing comments that may force the Government into some knee jerk reaction.

A few such reports that have come to our notice are as follows:

Publication Date Article Atributed to Statement
Business

Standard

27,June 2006 Now get the law Editor

 There is as yet no data security law in India. ... It should come, if only to raise comfort levels

A cross section of industry feels rightly that there is no substitute for a comprehensive law on security issues and deterrent punishment for transgression. An industry leader has specifically suggested that data theft be made a non-bailable offence.

Economic Times June 26, 2005 IT Act Review Panel to submit report Editor

The need for a data protection law has emerged again with a leakage of credit card information last week with an employee of a Gurgaon-based web marketing firm at the centre of the scam.

Economic Times June 25

2005

Needed. New Law, Enforcement Agency Editor

The Information Technology Act 2000 prescribes as penalty for breach of privacy a fine up to Rs 1 lakh and/or imprisonment up to two years. This is wholly inadequate.

We need a separate data protection law, with tough penalties. .. A separate enforcement agency with the requisite skill, separate tribunals and high court benches ..The government must act on this front, and fast.

Telegraph India June 24

2005

  M. RAJENDRAN

Quoting unnamed sources and Pavan Duggal

Unnamed Sources: "the government should enact a data protection law if it wants to instil confidence among foreign clients".

 Pawan Duggal a cyber law expert :said: “The Information Technology Act alone cannot give that confidence. The government should show urgency in making data protection an important part of the act.”

BBC News

Delhi

June 24

2005

Southik

Biswas

..experts agree that India needs to tighten up call centre security and info tech laws to stay ahead in the call business process outsourcing (BPO) business...that India's information technology laws ..do not give adequate attention to data protection.

If a call centre worker is found guilty of leaking and selling confidential data, he could face three years in prison and a fine of 100,000 rupees ($2,297) .. can even be sued for damages up to $225,000 to be paid to people affected by the leakage of information.

Sify.com 8th June 2005

(pre Gurgaon scam)

BPOs plump for law on data security President and CEO of EXL Service, Rohit Kapoor. & Mehra, PWC

Kapoor: suggested making the existing IT Act more effective by removing the existing lacunae and strengthening data protection and privacy rules.

Mehra: though the Indian IT Act makes unauthorised use of data a punishable offence, there are concerns about its timely enforcement given the slow pace of the country’s legal system.."The government needs to be proactive in keeping the IT Act in sync with advancement in technology and put in place a speedy legal recourse system," Mehra said

Express Computers 6th June

2005

Needed: a facelift for cyber laws Sushma

Data protection guidelines, protection from spam, and credit card fraud are absent in the Indian cyber law.

:Vishwas Patel, Avenues: “Credit card fraud is still not covered under the IT Act, so one has to approach the crime branch.” This defeats the purpose as the crime branch isn’t IT-savvy.


A few positive reports that have come to our notice are as follows:

Publication Date Article Atributed to Statement
Independent-UK 26, June

2005

Big hearts and small minds: companies rail at the dead hand of the box-tickers Ian El-Mokadem, One-Tel's chief executive.

"It is easier to set up a call centre in India than in the UK," says  "There is a more flexible workforce, a more flexible set of policies in India."

TOI 24th June

2005

Indian BPO is safer than UK's: Brit firms RASHMEE ROSHAN LALL
 

Tim Pullan an IT & Outsourcing partner at London law firm Lawrence Graham LLP told TOI on Friday that his clients, who signed some of the biggest outsourcing contracts with India over the last two years, were eminently satisfied with the security standards in place in call centres across Delhi, Mumbai, Bangalore and elsewhere in India.

A small attempt has been made in this report just to high light the fact that the media may require better understanding of Indian Laws on Data Protection before adding fuel to the fire of speculation about security.

It is important for us to remember that "Security" where human elements are involved is extremely complicated and frauds are a reality of the society. We need to balance our criticism of the Indian BPO industry with the level of security which is now available which is in fact considered to be superior to other countries including perhaps US and UK.

I reiterate that India has a robust Data Protection Law , the current incident could be Cyber Terrorism, there is a threat to Indian sovereignty if we do not respond with conviction to the present crisis and we need a strategy for security management

Naavi

June 26, 2005

(Comments welcome)



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