India. Sectoral privacy. Act

IT Act s43A/72AInformation Technology Act, 2000 - sections 43A and 72A

In force
Partly verifiedMedium confidence. Original IT Act dates and s72A penalty from general knowledge, not re-verified this session; s43A omission confirmed from DPDP Act s44(2) text. IT Act s1(2) extends to offences outside India involving Indian computer systems (s75).

§1Summary

Synopsis

Section 43A makes a body corporate handling sensitive personal data liable to pay compensation if negligent security causes wrongful loss or gain. Section 72A criminalises disclosure of personal information obtained under a lawful contract, without consent and with intent to cause wrongful loss or gain.

Key themes
  • reasonable security practices
  • compensation
  • unlawful disclosure
  • criminal liability
Unique features

Interim, negligence-based privacy regime limited to 'sensitive personal data or information'; s72A survives the DPDP Act while s43A is repealed when DPDP's core provisions start.

SaaS relevance

Until 13 May 2027 any SaaS body corporate handling SPDI of Indian users must maintain reasonable security practices (e.g. ISO 27001) to avoid s43A compensation claims; s72A criminal exposure for unauthorised disclosure continues.

§2Obligations

Extraterritorial
Limited
Breach notification
None under these sections (see CERT-In Directions)
DPO
No
Cross-border transfers
See SPDI Rules 2011
Maximum penalty
s43A: uncapped compensation; s72A: up to 3 years' imprisonment and/or fine up to INR 5 lakh

§3Dates

Key dates
  • Adopted
  • In force
  • Sections 43A and 72A inserted by IT (Amendment) Act 2008 (in force 2009-10-27). DPDP Act s44(2) omits s43A (and rule-making clause s87(2)(ob)) with effect from 2027-05-13.

§4Text and authority

Text
Authority
Adjudicating officers under IT Act / courts; MeitY

§5Where it applies

Domestic law of
India

§6Sources and verification

Sources consulted
Verification

Medium confidence.

Partly verifiedMedium confidence. Original IT Act dates and s72A penalty from general knowledge, not re-verified this session; s43A omission confirmed from DPDP Act s44(2) text. IT Act s1(2) extends to offences outside India involving Indian computer systems (s75).