CS Professional · Banking and Insurance - Laws and Practice · Digital Banking
Hackers breached Sarthak Bank's systems, and the Adjudicating Officer ordered compensation under the IT Act, 2000. The police also want to prosecute the offenders under the general penal law. Does the compensation order bar this?
The compensation does not bar prosecution. Section 77 of the IT Act provides that no compensation, penalty or confiscation under the Act prevents award of compensation or imposition of other penalty or punishment under any other law for the time being in force.
- AYes, the IT Act compensation excludes any other penalty
- BYes, unless the RBI permits the prosecution
- CNo, compensation under the IT Act does not prevent punishment under any other law in forceCorrect
- DNo, but only if the compensation is first paid in full
Explanation
Section 77 says no compensation awarded, penalty imposed or confiscation made under the IT Act prevents compensation or any other penalty or punishment under any other law in force. No RBI permission or prior payment is required.
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