Question
Consider the following statements regarding Section 43A
(Data Protection) of the IT Act, 2000: Statement 1: A body corporate has a statutory duty to implement reasonable security practices for personal data. Statement 2: Failure to protect personal data entitles the affected person to compensation up to Rs. 5 lakh. Statement 3: The duty under Section 43A applies only to companies handling personal data of more than 100,000 persons. Statement 4: A data breach due to force majeure (acts of God) exempts the body corporate from liability under Section 43A. Which statements are correct?Solution
Section 43A imposes data protection duty on body corporates—Statement 1 is correct. Compensation limit is not specified as exactly 5 lakh; Section 43A does not prescribe a cap—Statement 2 is incorrect. The duty applies to all entities handling personal data—Statement 3 is incorrect. Force majeure may be a defense but is not an absolute exemption—Statement 4 is partially incorrect. Statement 1 alone is clearly correct.
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