Section 74 IT Act: Publication for fraudulent purpose

Information Technology Act, 2000

Section 74 IT Act at a Glance

Section 74 IT Act punishes knowingly creating, publishing, or making available an electronic signature Certificate for any fraudulent or unlawful purpose. Punishment is imprisonment up to 2 years, a fine up to ₹1 lakh instead of imprisonment, or both.

Punishment

Up to 2 years

Bailable ⓘNon-Cognizable ⓘCompoundable ⓘ🏛️ Any Magistrate ⓘ

Section 74 IT Act Bare Act Text

74. Publication for fraudulent purpose.

Whoever knowingly creates, publishes or otherwise makes available a electronic signature Certificate for any fraudulent or unlawful purpose shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees, or with both.

Amendments to this section
  • Subs. by Act 10 of 2009, s. 2, for "digital signature" (w.e.f. 27-10-2009).

Section 74 IT Act in Simple Words

Section 74 IT Act makes it a criminal offence to knowingly create, publish, or make available an electronic signature Certificate for any fraudulent or unlawful purpose. Unlike Section 73 IT Act, which focuses on specific defects such as non-issuance, non-acceptance, suspension, or revocation, Section 74 IT Act targets the fraudulent or unlawful purpose behind creating or sharing the certificate.

Two conditions must come together for an offence under Section 74 IT Act. First, a person must knowingly create, publish, or otherwise make available an electronic signature Certificate. Second, that act must be done for a fraudulent or unlawful purpose.

Anyone convicted under Section 74 IT Act faces imprisonment up to 2 years, or a fine up to ₹1 lakh instead of imprisonment, or both. Section 74 IT Act was amended by Act 10 of 2009 (section 2) with effect from 27 October 2009.

Ingredients of Section 74 IT Act

  • A person creates, publishes, or otherwise makes available an electronic signature Certificate.
  • The person does that act knowingly.
  • The act is done for a fraudulent or unlawful purpose.

Punishment Under Section 74 IT Act

Imprisonment

Up to 2 years

Fine

Up to ₹1 lakh, instead of or with imprisonment

Bailable ⓘNon-Cognizable ⓘCompoundable ⓘ🏛️ Any Magistrate ⓘ

Section 77B IT Act does not cover an offence punishable with less than 3 years, so Part II of the First Schedule to the BNSS decides it: it is non-cognizable and bailable, and any Magistrate can try it. Section 77A IT Act lets the court compound it, but not where the accused is liable to enhanced punishment because of a previous conviction, or where the offence affects the socio economic conditions of the country or was committed against a child below 18 years or a woman.

Section 74 IT Act carries imprisonment up to 2 years, or a fine up to ₹1 lakh instead of imprisonment, or both. Because the punishment is less than 3 years, Section 77B IT Act does not apply, and Part II of the First Schedule to the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) makes the offence non-cognizable (so the police cannot register an FIR or arrest without a warrant), bailable (so the accused can claim bail as of right), and triable by any Magistrate. Under Section 77A IT Act, a court may compound (settle and close) the offence, except where the accused faces enhanced punishment due to a previous conviction, or where the offence affects the socio economic conditions of the country or was committed against a child below 18 years or a woman.

Example of Section 74 IT Act

Sameer runs an accounting office in Hisar and wants to divert supplier payments meant for Rukmini's firm. Sameer knowingly creates a fabricated electronic signature Certificate in the name of Rukmini's firm and sends the certificate to Rukmini's bank to authorise a fraudulent transfer. Sameer created and made available an electronic signature Certificate knowingly for a fraudulent purpose. Sameer commits an offence under Section 74 IT Act and faces up to 2 years imprisonment, a fine up to ₹1 lakh instead of imprisonment, or both.

When Section 74 IT Act Does Not Apply

  • Creating, publishing, or making available an electronic signature Certificate where the person did not act knowingly.
  • Creating, publishing, or making available an electronic signature Certificate without any fraudulent or unlawful purpose.

FAQs on Section 74 IT Act

What is Section 74 IT Act?▼

Section 74 IT Act punishes anyone who knowingly creates, publishes, or otherwise makes available an electronic signature Certificate for any fraudulent or unlawful purpose. A person convicted under Section 74 IT Act faces imprisonment up to 2 years, or a fine up to ₹1 lakh instead of imprisonment, or both.

Does Section 74 IT Act cover creating a certificate even before publishing it to the public?▼

Yes. Section 74 IT Act applies to anyone who knowingly creates, publishes, or otherwise makes available an electronic signature Certificate for any fraudulent or unlawful purpose.

Is an offence under Section 74 IT Act bailable?▼

Yes. Under Part II of the First Schedule to the BNSS, an offence under Section 74 IT Act is bailable and non-cognizable because the maximum prison term is under 3 years, outside Section 77B IT Act.

Can a court compound an offence under Section 74 IT Act?▼

Yes. Section 77A IT Act allows the court to compound the offence, unless the accused is liable to enhanced punishment from a previous conviction, or the offence affects the socio economic conditions of the country or was committed against a child below 18 years or a woman.

How is Section 74 IT Act different from Section 73 IT Act?▼

Purpose versus certificate status. Section 73 IT Act punishes knowingly publishing a certificate that is unissued, unaccepted, revoked, or suspended, whereas Section 74 IT Act punishes knowingly creating, publishing, or making available a certificate for any fraudulent or unlawful purpose.

Have questions about Section 74 IT Act?

Ask NyayGuru about your situation and get an answer based on the Information Technology Act, 2000.

Ask NyayGuru →

Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Information Technology Act, 2000 ·