About Cyber Due Diligence

Earlier, when entities and corporations were doing business using computers, computer systems and computer networks, the law was not much bothered. However since the year 2000, in India, there has been a change in the position of law.

The Information Technology Act 2000 was enacted primarily as a means for promoting a legal regime which would boost e-commerce in India. In the said law, the Parliament of India mandated the liability of network service providers. The said mandate was given under section 79 of Information Technology Act 2000.

Under the said section 79 of the Information Technology Act 2000, network service providers being Intermediaries were made liable for all third party data or information made available by them. The law however provided two exit routes for exiting the exposure to potential legal consequences for any network service provider/intermediary.

  • The first exit route was to show that the intermediary or network service provider did not have any knowledge of any contravention or violation of the law. The said exit route was a highly dubious non-starter since it is practically impossible to prove lack of knowledge in physical terms in any case. Further the judiciary in India has by and large not entertained a single case where proof of lack of knowledge by a network service provider/intermediary has been upheld by a court of law in India.

  • The second exit route available for intermediaries/network service providers goes to show that despite exercise of all due diligence, the network service providers still could not prevent the commission of any offence or contravention under the law.


    • It is pertinent to point that the law mandated the requirement of all due diligence which is a very comprehensive term. Cyber Due Diligence assists people in ensuring all due diligence while acting in the capacity as an intermediary/network service provider.

    However with effect from 5th of February 2009, there has been a change of law in India.

    The Information Technology Amendment Act, 2008 amended the Information Technology Act, 2000 and the said Amendment act was notified in the official Gazette on 05.02.2009. It is pertinent to note that under the amended Information Technology Act 2000, the language of section 79 has undergone a change. However in the said language, the legislature has still upheld the necessity of the intermediary to exercise due diligence while discharging its obligations under the Information Technology Act, 2000.

    As such the law has retained the mandatory requirement of due diligence.

    Cyber Due Diligence assists companies corporations and other legal entities using computers, computer systems, computer networks and communication devices to do their appropriate due diligence under the requirements of the Information Technology Act 2000 as amended to the extent to which it is applicable and relevent to their specific lines of business

    Cyber Due Diligence is executed by India’s niche technology Law firm Pavan Duggal Associates which has had a distinguished record in terms of assisting various companies to do their due diligence as per the requirement of the Information Technology Act 2000 over the last many years.

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