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    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?
    A Statements 1, 2, and 3 only Correct Answer Incorrect Answer
    B Statements 1 and 2 only Correct Answer Incorrect Answer
    C Statements 2 and 4 only Correct Answer Incorrect Answer
    D Statements 1 only Correct Answer Incorrect Answer
    E All statements are correct Correct Answer Incorrect Answer

    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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