Question
Under Section 22 of the Credit Information Companies
(Regulation) Act, 2005, an employee of a fintech company, Y, obtains unauthorised access to credit information of 50 borrowers maintained by a CIC by exploiting a security vulnerability. Y's unauthorized access continues for 60 days before detection. Y never misused the accessed data but retained access through negligent exposure of credentials. The unauthorized access involves 50 distinct individuals' credit information. Which of the following correctly determines Y's criminal liability and penalties under Section 22(2)?Solution
Explanation: Section 22(2) of the CICRA, 2005 provides: "Any person who obtains unauthorised access to credit information as referred to in sub-section (1) shall be punishable with fine which may extend to one lakh rupees in respect of each offence and if he continues to have such unauthorised access, with further fine which may extend to ten thousand rupees for every day on which the default continues." The provision is explicit on two critical points: (1) "in respect of each offence" – meaning each person's unauthorized access constitutes a separate offence; (2) "for every day" – meaning the continued unauthorized access accrues cumulative daily penalties. In Y's case: First layer: 50 unauthorized accesses to 50 individuals = 50 separate offences = up to ₹50 lakhs (₹1 lakh × 50). Second layer: 60 days of continued access = further fine up to ₹6 lakhs (₹10,000 × 60 days). The provision does NOT require proof of actual misuse or intentional harm; mere unauthorized access constitutes the offence. The statute recognizes both individual and institutional liability. Thus, option (B) correctly applies the cumulative penalty structure of Section 22(2)
- What constitutes the use of criminal force under the Bharatiya Nyaya Sanhita?
- Which of the following is true relating to Red- herring Prospectus?
- According to the Occupational Safety, Health and Working Conditions Code, what is the maximum number of hours a worker can be required or allowed to work i...
- According to the PC Act, bribe accepted for doing a lawful act is:
- In case of compromise or arrangement is proposed between a company and its creditors or any class of them; or between a company and its members or any clas...
- What is the maximum term of simple imprisonment the Court may impose in default of payment of fine or community service as laid down under Bharatiya Nyaya ...
- Under Section 80, what is the minimum punishment for “dowry death”?
- A preliminary inquiry is referred by Lokpal to CVC. Which specific statutory position is meant to handle such preliminary inquiries under the CVC Act (as a...
- Within how many years of marriage does a woman's death qualify as "Dowry Death" if caused under unnatural circumstances along with dowry-related harassment...
- Protection under Section 15 applies to actions which are:
