Section 3(4) in The Information Technology (Recognition of Foreign Certifying Authorities not Operating under any Regulatory Authority) Regulations, 2013
(4)Invocation of Performance Bond and Banker's Guarantee - Without prejudice to any penalty which may be imposed or prosecution which may be initiated for any offence under the Act or any other law for the time being in force, the performance bond and banker's guarantee submitted under sub-regulation (3) may be invoked in the following circumstances, namely :-(a)when the Controller has suspended the recognition of the foreign certifying authority under these regulations; or(b)for payment of an offer of compensation made by the Controller; or(c)for payment of liabilities and rectification costs attributed to the negligence of the foreign Certifying Authority, its officers or employees; or(d)for payment of the costs incurred in the discontinuation or transfer of operations of the foreign Certifying Authority, if the foreign Certifying Authority's authorization in the country of its origin or operations is discontinued; or(e)for payment of the costs incurred in the inspection of the infrastructure utilized by the foreign certifying authority for generation, issue and management of Digital Signature Certificates if such costs are not defrayed by the foreign certifying authority.(f)any other default made by the Certifying Authority in complying with the provisions of the Act or rules made thereunder or under these regulations.Explanation. - For the purpose of this sub-regulation, the expression "transfer of operation" shall have the meaning assigned to it in clause (47) of section 2 of the Income-tax Act, 1961 (43 of 1961).
