This are the rules notified...
lnformation Technology (Electronic Service Delivery) Rules, 2011.
Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011.
Information Technology (Intermediaries guidelines) Rules, 2011.
Information Technology (Guidelines for Cyber Cafe) Rules, 2011.
If one has the time, should read it fully. Barring Cyber Cafe Regulations which has some hilarious provisions, the other regulations are good actually. They deal with protection of private data, privacy rules and has many provisions protecting sensitive individual info, suggesting how a service provider can or cannot use personal info. I would say first comprehensive guidelines for the internet jungle out there. Unfortunately Media generally never bother to study the full thing & pick up random juicy tid bits to tickle & sensationalise.
Not to say that few words of 3 (i) is not having subjective meaning...
Here is the offending provision... Read in totality...
3. Due diligence to be observed by intermediary.— The intermediary shall observe following due diligence while discharging his duties, namely : ―
(1) The intermediary shall publish the rules and regulations, privacy policy and user agreement for access or usage of the intermediary's computer resource by any person.
(2) Such rules and regulations, terms and conditions or user agreement shall inform the users of computer resource not to host, display, upload, modify, publish, transmit, update or share any information that —
(a) belongs to another person and to which the user does not have any right to;
(b] is grossly harmful, harassing, blasphemous, defamatory, obscene, pornographic, paedophilic, libellous, invasive of another's privacy, hateful, or racially, ethnically objectionable, disparaging, relating or encouraging money laundering or gambling, or otherwise unlawful in any manner whatever;
[c] harm minors in any way;
(d) infringes any patent, trademark, copyright or other proprietary rights;
(e) violates any law for the time being in force;
(f) deceives or misleads the addressee about the origin of such messages or communicates any information which is grossly offensive or menacing in nature;
(g) impersonate another person;
(h) contains software viruses or any other computer code, files or programs designed to interrupt, destroy or limit the functionality of any computer resource;
(i) threatens the unity, integrity, defence, security or sovereignty of India, friendly relations with foreign states, or or public order or causes incitement to the commission of any cognisable offence or prevents investigation of any offence or is insulting any other nation.
Download Full Regulation
RNUS_CyberLaw_15411 Rules April 2011.pdf