Launched in 2000, the crowdsourced reviews site MouthShut.com has lived through the boom and bust of the Web industry in India. Now though, Faisal Farooqui, Founder and CEO, says the ecosystem is even harder for certain types of online businesses, and that's because of the rules contained within the Information Technology Act.
Mouthshut is a website that lets you leave feedback on almost anything. Today, the site is divided into 16 broad categories that are then further divided into several sub-categories. You can rate your employers, educational institutes, real estate projects, restaurants, films and much more. According to Farooqui, the Act has been used by people like builders and film producers to remove negative reviews of their properties and films, hiding what consumers are really saying.
Farooqui's argument is that the IT Regulations are preventing his right to do business, as promised by Article 19 of the Constitution of India. He tells us that MouthShut was bombarded with content takedown requests from people who weren't willing to tolerate any negative criticism.
"With the new rules, you didn't have to have a case," says Farooqui. "People were feeling very empowered by the 2011 amendment, and [we have been] seeing over 800 takedown notices each year." Initially, the company accepted many of these requests, but, in 2013, MouthShut decided to stop scrambling to comply with these regulations and instead challenge them in court.
Today, the Government of India talks about supporting IT startups and helping Indian entrepreneurs. But Farooqui's example shows why the IT rules make it difficult for any online business in India.
"We've got a dozen court cases at various courts in the country, so we are forced to spend our resources - both time and money on legal matters," he explains
http://m.gadgets.ndtv.com/internet/features/how-the-it-act-is-stopping-india-from-producing-the-next-facebook-or-twitter-655669