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Old 12-20-2004, 12:08 PM   #1
BigWebRev
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Join Date: Aug 2004
Location: L A
Posts: 1,631
Outcry over Indian eBay sex probe

might have been posted before.....

NEW DELHI, India (AP) -- Parent company eBay and Indian industry officials have expressed anger and concern over the jailing of the CEO of eBay's Indian subsidiary in connection with the online sale of a sex video.

The U.S. State Department also has made inquiries about the case.

Avnish Bajaj, the CEO of Baazee.com -- India's most popular shopping portal, now owned by California-based eBay Inc. -- was arrested Friday in connection with the sale of images showing teenage classmates at a New Delhi high school engaged in oral sex.

The U.S. company said it was "outraged" by the police action, saying the sale took place without the knowledge of company officials.

The seller violated the company's policies and Baazee.com took appropriate action in removing the item from its site as soon as it became aware of it, the company said

eBay spent US$50 million in June to acquire Baazee.com.

Bajaj was in court on Saturday, where the judge refused bail and sent him to jail for a week. A U.S. consular official also attended the court hearing, the U.S. Embassy statement said, but didn't elaborate.

"The U.S. Embassy is following this case very closely. There is high level interest in Washington regarding the case," said an embassy statement issued over the weekend.

The seller, an engineering student in an eastern Indian city, was arrested a week ago. Police are hunting for the boy who filmed the act on his camera-fitted mobile phone and circulated it to his friends.

"The video clip itself was not shown on the site; the seller offered to e-mail the clip to the buyer directly," an eBay statement said.

"The listing violated Baazee.com's policies and user agreement and was removed from the site once it was discovered."

Bajaj was arrested after he voluntarily traveled to New Delhi to cooperate with the police investigating the case, eBay said, calling his arrest "unexpected and completely unwarranted."

Industry officials and legal experts in India also deplored the arrest and demanded that the government clarify the country's Information Technology Act.

Police said Friday that Bajaj was arrested under the 2000 IT Act that declares "publishing, transmitting, or causing to publish any information in electronic form, which is obscene" as a criminal offense.

However, the law is ambiguous about who should be held responsible for such offenses.

Deputy Commissioner of Police heading the investigation, Prabhakar, who uses only one name, declined to comment on Sunday.

According to the law, a network service provider or a Web site manager can't be held responsible for an electronic offense if he has acted diligently to prevent it after being informed about the offense, said Pawan Duggal, an expert on cyber laws.

But the provisions in this respect have not been clearly spelled out in the IT Act, leaving room for numerous interpretations, Duggal said.

Bajaj's arrest has "many ramifications," especially at a time when Internet usage in the country is rapidly growing and foreign investors are increasingly looking to India for e-commerce opportunities, said Amit Mitra, the chief executive at the Federation of Indian Chambers of Commerce and Industry.

"It's a huge service industry of tomorrow. We need to be careful and cautious in what we do," Mitra said. "The IT Act has to be now rethought."
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