Introduction
“Whoever dishonestly receives or retains any stolen computer resource or communication device knowing or having reason to believe the same to be stolen shall be punished with imprisonment for a term which may extend to three years or with fine which may extend to one lakh rupees or with both.”
This section forms part of Chapter XI of the Information Technology Act, 2000, which deals with offences related to cybercrime. Section 66B specifically addresses the dishonest receipt or retention of stolen digital assets, such as computers, data, or mobile devices. It targets those who knowingly possess or benefit from stolen technology or digital resources.
What Does Section 66B Aim to Prevent?
Section 66B aims to deter individuals from participating in the secondary market of stolen digital property. While many cyber laws punish hackers or original offenders, Section 66B extends liability to those who knowingly buy, keep, or use stolen computer resources.
The section mirrors the logic of Section 411 of the Indian Penal Code (IPC), which punishes the dishonest receipt of stolen property. However, Section 66B modernizes this offence for the digital era, covering intangible assets like software, databases, and online data systems.
Who Can Be Prosecuted Under Section 66B?
Any person who receives, retains, or uses a computer resource or communication device, knowing it to be stolen, can be prosecuted. The law requires two essential elements:
- Dishonest intention, meaning an intent to gain wrongfully or cause loss to another.
- Knowledge or reasonable belief that the digital asset is stolen.
In simple terms, if a person knowingly buys or stores stolen software, a hacked mobile phone, or copied data, they commit an offence under this section.
What Are “Computer Resources” and “Communication Devices”?
The Information Technology Act, 2000 defines these terms broadly.
- A computer resource includes hardware, software, databases, and data stored electronically.
- A communication device includes mobile phones, tablets, laptops, or any gadget used to send or receive information.
Thus, the law applies to a wide range of technologies, from stolen laptops and hacked phones to pirated digital files and compromised data servers.
What Is the Punishment for Violating Section 66B?
The punishment under Section 66B is:
- Imprisonment up to three years, or
- Fine up to ₹1,00,000, or
- Both, depending on the gravity of the offence.
Courts consider factors such as the value of stolen property, degree of involvement, and extent of damage before determining the penalty. In serious cases involving organized digital theft or financial loss, both imprisonment and fine are likely.
How Does Section 66B Differ from Other Cybercrime Provisions?
Section 66B is unique because it penalizes receivers of stolen digital assets, not just the original hackers.
For instance, Section 43 and Section 66 deal with unauthorized access and data theft, while Section 66B ensures that no one profits from these crimes.
It effectively shuts down the “after-market” for stolen technology, discouraging individuals or businesses from purchasing or retaining suspicious devices or software.
Can You Be Punished for Buying a Used Device?
Not always. The law protects those who act in good faith.
If someone buys a second-hand mobile or laptop without knowing it was stolen, and there is no evidence of dishonest intent or knowledge, they are not liable.
However, if the buyer had reason to suspect the device was stolen, for example, if the price was unreasonably low or documentation was missing, they could face prosecution.
Courts assess each case based on intent, knowledge, and circumstances of the purchase.
How Is Intent Proven in Section 66B Cases?
Proving dishonest intent or knowledge is central to prosecution under Section 66B.
Investigators rely heavily on digital forensics and electronic evidence. Digital footprints, transaction records, communication logs, and metadata often reveal whether the accused was aware of the stolen nature of the property.
Courts require strict compliance with Section 65B of the Indian Evidence Act, which governs the admissibility of electronic evidence.
Without proper certification, digital evidence may be rejected, making proper investigation crucial.
What Are Some Real-World Examples of Section 66B Violations?
Example 1: A person buys a stolen laptop from a hacker at a discounted price. Later, the laptop is traced to a company data breach. Since the buyer knew the price was suspiciously low and lacked ownership proof, Section 66B applies.
Example 2: An IT employee downloads confidential company code from a hacker’s server to gain a competitive edge. Even if the person didn’t hack the data themselves, retaining or using it knowingly makes them liable under Section 66B.
Example 3: A reseller purchases stolen mobile phones from online black markets. Once evidence shows knowledge of the theft chain, all such devices and profits become subject to seizure and prosecution.
How Does the Law Protect Innocent Purchasers?
The law distinguishes between honest purchasers and dishonest receivers.
If a buyer can show they made the purchase in good faith, with valid receipts, proper identity proof, and no reason to believe the item was stolen, they are protected.
However, negligence, like buying devices from unverified online sellers without documentation, may lead to suspicion and investigation.
Why Is Section 66B Important in Cybersecurity Enforcement?
Cybercrime is not limited to hacking alone. Many offenders profit by reselling stolen hardware, data, or credentials to others. Section 66B addresses this ecosystem by criminalizing the entire chain of illegal possession.
It strengthens India’s cyber law framework by ensuring that digital theft has no safe market. The section discourages individuals and businesses from purchasing or using unverified software, databases, or gadgets obtained through illegal means.
What Role Does Digital Forensics Play in Section 66B Cases?
Digital forensics plays a decisive role. Experts trace IP logs, timestamps, device identifiers, and data transfer trails to prove possession and knowledge.
Every transaction leaves digital evidence that helps establish guilt or innocence.
Forensic reports certified under Section 65B of the Evidence Act are critical for admissibility in court. Without this, prosecution may fail even in clear cases of stolen property.
Are There Any Related Legal Provisions?
Yes. Section 66B works in coordination with:
- Section 66C – identity theft,
- Section 66D – cheating by impersonation,
- Section 66E – violation of privacy, and
- Section 43 – unauthorized access and damage to computer systems.
Together, these provisions create a comprehensive legal framework to address every stage of a cybercrime, from hacking and theft to receipt and misuse of stolen data.
How Do Courts Interpret Section 66B?
Courts have treated this offence seriously, especially when it involves corporate data, banking credentials, or personal information.
Judicial interpretation emphasizes that knowledge and intent are the deciding factors. Courts have also drawn parallels to Section 411 IPC, noting that “stolen property” under the IT Act extends to digital and virtual assets.
In several cases, courts have upheld convictions where evidence clearly showed deliberate retention of stolen files or devices.
What Are the Broader Implications of Section 66B?
Section 66B plays a crucial role in strengthening digital trust. By penalizing not only hackers but also beneficiaries of digital theft, it closes loopholes in cyber law enforcement.
It also ensures accountability in digital commerce, preventing illegal trade of devices, credentials, and stolen software.
In the era of online resale platforms and cryptocurrency-driven thefts, this law helps protect businesses, individuals, and government data from misuse.
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Conclusion
Section 66B of the IT Act, 2000, remains one of India’s most essential cybercrime provisions. It reinforces the idea that receiving stolen digital property is as serious as stealing it.
The law ensures that those who knowingly profit from cyber theft face criminal punishment, including imprisonment and fines.
In a world where stolen data and devices circulate quickly online, Section 66B acts as a strong deterrent. It upholds the integrity of India’s digital ecosystem and supports the nation’s ongoing battle against cybercrime.
Understanding and complying with this provision is vital for every individual and organization operating in the digital space.
