The Indian Post Office Amendment Bill...The New Terror to Netizens

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As the year 2002 ends and a new year dawns, a threat lurking on the horizon needs to be brought into the attention of the Indian Netizens.

This comes in the form of the Indian Post Office Amendment Bill (IPOAB) which is due for passage in the Parliament and which could affect E-Mail services and E-payment services.

If Netizens and Internet Service Providers continue to sleep over Cyber Regulations when they are under discussion, they will be regretting later when the laws get enacted.

More often these laws will be in hibernation for some time until the private sector builds up a business base and one day some official will suddenly realize that there is a law to ban E-Mail services by any body other than the Indian Postal Authority and there is a law requiring every E-Mail service provider to register with the Post Master General and pay a certain fees.

At that time since lot of investments would have already sunk in, there will be no option but to regularize the transactions with the payment of a huge arrears of payment.

It is therefore necessary for the industry to take a serious look at the provisions of this Bill and ensure that it cannot be misused by some future Government to arm twist private sector industries.

Stated Objectives:

The IPOAB is being enacted ostensibly

to bring about qualitative improvement in the services with more consumer-friendly features which are sought to be achieved within the basic legal framework provided by the IPO Act.

The Bill acknowledges that Post Office is presently required to fulfill the following objectives:—

(a) enable the  common man to communicate  at an affordable price;

(b) achieve financial self-sufficiency, reducing its dependence on budgetary support;

(c) extend the benefits of electronic media communication to larger segments of customers in the country.

Key Amendments:

Some of the important amendments proposed in the Indian Post Office (Amendment) Bill, 2002 affecting the Netizens are:—

(i) preservation of  exclusive privilege of the Central Government to convey all letters with certain exceptions;

(ii) empowering the Department of Posts to  introduce e-enabled services bridging the digital divide in the country;

The above amendments have to be seen in the context of addition of the new subsection (1)(aaa) which states

-the expression “electronic post” with reference to receiving and transmitting message by post includes any message sent, received, collected, transmitted or stored in media, magnetic, optical, computer memory, micro film, computer generated micro fiche or  any other similar device, through computer system or secure computer network;'

-the expression “letter” means any written communication to and from any person to any specific address and includes letter-card, post-card and envelope but does not include newspapers and parcels.

-the expression “postal article” includes a letter, letter-card, post-card, newspaper, book packet, parcel and every article or thing transmissible by post, or by any person or body authorised to carry such articles under the Act.

The most disturbing clause is the Exclusive Privilege clause which states,

Wherever within India posts or postal communications are established by the Central Government, the Central Government shall have the exclusive privilege of conveying by post, from one place to another, all letters except in the following cases, and shall also have the exclusive privilege of performing all the incidental services of receiving, collecting, sending, despatching and delivering all letters, except in the following cases, that is to say:—

(a) letters sent by a private friend in his way, journey or travel, to be delivered by him to the person to whom they are directed, without hire, reward or other profit or advantage for receiving, carrying or delivering them;

(b) letters solely concerning the affairs of the sender and delivered by his employee or a messenger employed by him and the sender is not engaged in the business of procuring or delivery of letters;

(c) documents issued by a court or other authority entitled to issue the same, or any return or answers to such documents sent, conveyed and delivered otherwise than by post;

(d) letters solely concerning goods or property sent either by land, sea or air to be delivered with the goods or property to which the letters concern, without hire, reward or other profit or advantage for receiving, carrying or delivering them:

Provided that nothing in this section shall authorise any person to make a collection of letters excepted as aforesaid for the purpose of sending them otherwise than by post.”. 

Registration

Further the amendments state that

-The Central Government may, grant registration on such terms and conditions, as it thinks fit, to any person or body for carrying out any act or  performing  any service falling under section 4,  in consideration of such fees as is set forth in the Second Schedule.

E-Payments

The amendments also enter the area of e-payment systems and state

-The Central Government may provide for the remittance of money through the post office by means of money order, postal order, telegraphic money order, satellite money order (hereinafter referred to as the money order), or any other instrument (hereinafter referred to as money transfer instrument) and may make rules as to such money orders or money transfer instrument.

The desire of the Postal authorities to introduce e-services is a welcome step. However, in view of the "Exclusive Privileges" clause available  for any Postal Services, in the absence of a special waiver, the entry of Postal Authorities to either the E-Mail service or E-payment service will automatically bring such services under the category of "Exclusive Services Reserved for Postal Authorities".

The amendments may therefore make the Post Master General the super licensing authority for any E-mail and Payment Gateway services.

Public will agree that this is a highly undesirable legislation.

naavi.org believes that the amendment is not intended to bring monopoly in E-Mail services and we may even receive a clarification from the Government in this regard. However the legislation in its present form can be reasonably interpreted to uphold the exclusive privileges of the Indian Postal Authorities and in some future date enable them to  introduce a "Transaction Fee" for every e-mails or every e-payments concluded by private parties.

This legislation therefore cannot be trusted and must be modified to state exclusively that

"Provisions contained in this enactment regarding electronic post and electronic payments are only for the purpose of enabling the Indian Postal authorities to deliver such services. Nothing contained in this Act or in the rules that will be made here under will affect the E-Mails, E-Payments and any Electronic services that are currently offered by and may be in future offered by any  person or firm, institution, or body corporate other than the Indian Postal Authorities."

I hope this aspect will be considered by the legislators when the Bill comes for discussion in the Parliament.

It must be recognized that Postal authorities may not always be able to provide their services at the least price and even today many of the services of couriers are cheaper than Postal services. In this context, the legislation creating a monopoly or even supervisory rights on e- services will be against the consumer interests in India.

Public are requested to send their views to either naavi.org.

Naavi

December 30, 2002


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