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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Data Governance

Veda Networks Pvt Ltd, an intermediary, receives a call from a Government agency authorised under section 69B of the IT Act to monitor traffic data for cyber security. The agency seeks online access to the computer resource. Veda's management refuses to cooperate, knowingly. Which is correct as per the text of section 69B?

Veda must provide technical assistance and extend all facilities to the authorised agency. An intermediary intentionally or knowingly contravening this is punishable with imprisonment up to one year, or fine up to one crore rupees, or both, under the current section 69B(4).

  1. AVeda may refuse because section 69B binds only the Central Government
  2. BVeda must provide technical assistance and facilities, and intentional or knowing contravention by an intermediary is punishable with imprisonment up to one year or fine up to one crore rupees, or bothCorrect
  3. CVeda faces only a civil notice with no punishment
  4. DVeda faces imprisonment of up to three years and a mandatory fine

Explanation

Section 69B(2) requires the intermediary to give technical assistance and all facilities. Section 69B(4), as amended in 2023, provides imprisonment up to one year or fine up to one crore rupees, or both. The three-year-plus-fine penalty was the earlier wording and has been replaced.

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