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Under Section 43A of the Information Technology Act, 2000, a body corporate that is negligent in implementing reasonable security practices and procedures and thereby causes wrongful loss or wrongful gain to any person shall be liable to:
Answer & Solution
Correct answer: A.
1. Section 43A of the IT Act was inserted by the 2008 Amendment.
2. It applies to a body corporate possessing, dealing or handling sensitive personal data or information.
3. Where such body corporate is negligent in implementing reasonable security practices, it is liable to pay damages by way of compensation.
4. The penalty under Section 43A is purely civil (compensation) — not criminal imprisonment, revenue forfeiture, or corporate dissolution.
_Source: ICSI CS Executive Paper 1 (Jurisprudence, Interpretation & General Laws) — Lesson 17: Information Technology Act, 2000, pp. 407-419._
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