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Global CEO Magazine:
CEOs in the IT domain: Beware!
 
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Is our legal framework good enough in a rapidly changing environment? How often have statutes in the IT sector evolved in sync with the domain that they purport to safeguard? How watertight are the laws in ensuring that while the guilty do not escape from the vice-like grip of the law, the innocents are not punished? The recent arrest of Avnish Bajaj, the Chief Executive of Baazee.com, in the context of the students’ sex scandal has opened a Pandora’s Box. The most prominent question that has cropped up is: Is the Chief Executive/Head of a portal completely responsible for all transactions/content displays on the portal/website?

The recent arrest of Avnish Bajaj, the Chief Executive of Baazee.com, in the Delhi students’ sex scandal case has opened the Pandora’s Box. Two prominent issues from an organizational perspective are those of Corporate Social Responsibility and Accountability. The most prominent question that has cropped up is: Is the Chief Executive/Head of a portal responsible for all transactions/ content displays on the portal/website? The question of accountability has strong legal associations that have to be examined in the context of the dynamic, ever-changing IT environment with an increased emphasis on process automation, the seamless convergence of different media and the recognition of individual choice through personalization of services and products. In this rapidly evolving context, where does our legal framework stand? How often have statutes in the IT sector evolved at a pace that is in sync with the domain that they purport to safeguard? How watertight are the laws in ensuring that while the guilty do not escape from the vice-like grip of the law, the innocent are not punished? In this article we first list out the facts of the case and present the sequence of events. We then address the legal statutes that are relevant to this case. We primarily look at the applicability of the Indian Penal Code and the Information Technology Act, 2000 (here in after IT Act). We also examine whether statutes such as the Indecent Representation of Women (Prohibition) Act are relevant to this case. We also address the issue of obscenity and its interpretation as per the statutes in India, UK and USA. We then look at the legal position of Baazee.com in the Indian scenario and specifically look at the issue of vicarious liability to CEOs. The power of law-enforcers as per the IT Act is addressed and the consequences of the loopholes are identified.

 
 

 

CEOs in the IT domain: Beware!, Corporate Social Responsibility , Accountability, IT environment, IT sector, Information Technology Act, accountability.