Take Action Against Domain Name Registrars For Not Complying With IT Rules: Delhi High Court To IT Ministry

The Delhi High Court has directed the Ministry of Electronics and Information Technology and Department of Telecommunications to take action in accordance with Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 against domain name registrars (DNRs) who are not complying with the Rules. 

Justice Prathiba M Singh observed that stringent steps are required to be taken in order to “curb the menace of illegal domain name registrations” having marks and names of well-known business houses. The bench particularly called for action against those DNRs which have not appointed grievance officers or have failed to implement orders of courts and authorities in India. 

The court was hearing a bunch of pleas, concerning proliferation of fraudulent domain names, filed by trademark and brand owners seeking reliefs against misuse of their marks and names by unauthorized persons, who register such marks as part of their domain names.

The court said that the counsel appearing for the plaintiffs will be free to communicate with an official from MeitY who shall act as the nodal officer to coordinate with DoT and any other authorities. 

It also asked them to submit their respective lists of DNRs which are not complying with the judicial orders and are not appointing the grievance officers.

“It is directed that the concerned MEITY/DOT officials shall peruse the various orders which are passed in these proceedings prior to taking any action under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021,” the court said.

Directing that the steps against in terms of the Rules be taken within four weeks, the court also sought a status report from MeitY on the action taken as per the directions.

The counsel appearing for plaintiffs submitted that in some of the matters, various DNRs have completely refused to comply with blocking orders and other directions issued by the court.

The court also observed that the Reserve Bank of India (RBI) needs to take steps to curb malpractices where amounts have been accepted by banks in the names of well-known companies but the bank account stands in the name of third party.

The court asked the counsel appearing for RBI to seek instructions as to whether the regulatory authority can issue guidelines making it mandatory for banks to match beneficiary’s name or name in the billing details with the account holder’s name “and not merely the account number” whenever banks accept online or offline payments.

“Let an affidavit in this regard be placed on record by the RBI within 4 weeks,” the court said while listing the matter for hearing on March 27.

Earlier, the court in September last year had asked various DNRs to submit details of their Grievance Officers and directed DOT and MeITY to take action in accordance with law, in case the DNRs have not appointed the officers.

Case Title: DABUR INDIA LIMITED v. ASHOK KUMAR AND ORS and other connected matters

Citation: 2023 LiveLaw (Del) 150

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