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IT Act 2000

Section 23

Renewal of Licence

THE STATUTE

Original Text

A Certifying Authority may make an application, in such form as may be prescribed by the Central Government, for renewal of its licence, accompanied by such fees, as may be prescribed by the Central Government, not exceeding five thousand rupees and such application shall be made not less than forty-five days before the date of expiry of the period of the licence.

Simplified

Section 23 governs the renewal of a Certifying Authority's licence. Three requirements apply: the renewal application must be in the prescribed form; it must be accompanied by the prescribed fee (capped at Rs 5,000 by the section, considerably lower than the original application fee cap of Rs 25,000 under Section 22); and crucially, it must be filed at least 45 days before the licence expiry date. The 45-day advance filing requirement is operationally significant. A CA licence is the legal foundation for all certificate-issuance activity — if a licence expires without renewal, the CA technically has no authority to issue new certificates and its existing issued certificates' validity could be questioned. The 45-day window allows the Controller to process the renewal without disrupting the CA's operations. If a CA fails to apply in time, it faces the risk of operating in a legal grey zone as its licence lapses. The renewal process is also an opportunity for the Controller to assess continuing compliance — a CA that has accumulated regulatory concerns during its licence period may face conditions attached to the renewed licence or, if concerns are serious, may be denied renewal. Section 23 is brief but important as the maintenance mechanism that prevents licences from being treated as permanent once granted, ensuring periodic regulatory review.

Legal Evolution

Section 23 was in the original IT Act 2000. The lower fee cap for renewal compared to initial application reflects the reduced administrative burden of renewal versus fresh licensing. In practice, the CCA's licensed CAs have generally maintained continuous licences since their initial grant, with the renewal process functioning as a routine compliance checkpoint.

Key Amendments

Unchanged since the original IT Act 2000.