Bengaluru, June 10 (PTI): The Karnataka government's draft law aimed at prohibiting misinformation in the state proposes punishment with imprisonment which may extend up to seven years and fine up to Rs 10 lakhs or both, if any social media user is found guilty of posting fake news.

The draft of the Karnataka Misinformation and Fake news (Prohibition) Bill, 2025 is likely to be placed before the next cabinet meet.

Any individual outside or inside Karnataka who communicates misinformation to persons in the state, which is "prejudicial to public health, public safety, public tranquility or the conduct of free and fair elections" will face 2-5 years of imprisonment and will also be liable to fined. For abetting the spread of misinformation, two years of jail term has been proposed.

As per the draft Bill, the state government shall ensure a complete prohibition on fake news on social media platforms.

It provides for the government to constitute the "Fake News on Social Media Regulatory Authority" for carrying out the purpose of this proposed legislation.

The Authority shall consist of -- the Minister for Kannada and Culture Information and Broadcasting as ex-officio Chairperson, one member each from the Karnataka Legislative Assembly and the Karnataka Legislative Council, two representatives from social media platforms to be appointed by the State Government in such manner as may be prescribed as member and IAS officer who shall be the Secretary to the Authority.

The draft bill defines "misinformation" as knowingly or recklessly making a false or inaccurate statement of fact, whether wholly or in part, in the context in which it appears excluding opinions, religious or philosophical sermons, satire, comedy or parody or any other form of artistic expression if a reasonable man of ordinary prudence does not pursue such communications as statements of fact.

While, "fake news" has been defined as combinations of misquotation or the false and/or inaccurate report of one's statement. editing audio or video which results in the distortion of facts and/or the context, or purely fabricated content.

The authority along with ensuring complete ban on promotion and spread of fake news on the social media platforms, will also ensure prohibition on the posting of contents which are abusive and obscene including anti-feminism and insult to the dignity of the female on the social media platforms.

It would also prohibit publication of content amounting to disrespect of Sanatan symbols and beliefs, and content promoting superstition on the social media platform.

The draft bill also mentions setting up of special courts for faster trials of offences, and provides for appointment of at least one special public prosecutor for every special court and one in each bench of the High Court.

The Bill's statement of objects and reasons point out that the problem of fake news is becoming more complex because the number of people using the internet in India is continuously increasing.

At present, 27 per cent of India's population uses internet. India has the second largest number of internet users in the world after China.

Further noting that today social media is the biggest force in the world, but caution is also necessary in its use, and a small piece of fake news can create a ruckus in the whole country, it said, without knowing truth, no message should be forwarded so as to avoid the menace of fake news.

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New Delhi, Aug 13 (PTI): The Enforcement Directorate said on Wednesday it has arrested a woman, who claims to be an actor and a cosmetologist, under the anti-money laundering law in a case of alleged fraud and misrepresentation.

The agency said the purported links of the woman, Sandeepa Virk, with a Reliance Group executive, Angarai Natarajan Sethuraman (President, Corporate Affairs), are also under its scanner. Sethuraman, in a statement, denied any connection with Virk or any transactions related to her.

Virk was taken into custody under the Prevention of Money Laundering Act (PMLA) on Tuesday after searches were conducted against her and her associates in Delhi and Mumbai over the last two days.

A special court sent her to the ED's custody till August 14, the agency said. The woman claims to be the owner of a skin care products selling website named hyboocare.com, which the ED claimed was a "front" for money laundering.

She and her associates are being probed for allegedly exerting undue influence through "misrepresentation" and "defrauding" individuals by soliciting money under false pretences.

According to an Instagram ID of Virk, she is an actor and entrepreneur and the founder of the said website.

The federal agency said in a statement that the woman was also "in touch with" Sethuraman, former director of erstwhile Reliance Capital Limited.

She was communicating with him regarding "illegal liaisoning", the ED claimed, adding that the searches at Sethuraman's residence "confirmed" these allegations.

"Besides, diversion of funds for personal benefit has also been unearthed during the course of the search action," it said.

The ED alleged that public money worth about Rs 18 crore belonging to Reliance Commercial Finance Limited (RCFL) was disbursed to Sethuraman in 2018 by "flouting" prudent lending norms.

The funds were lent under terms that allowed a deferment of the principal amount as well as the interest, with multiple waivers granted and no due diligence conducted, it said.

The ED claimed that besides this, a home loan of Rs 22 crore was provided by Reliance Capital Limited by "violating" the prudential norms. "A large part of these loans are seen to have been eventually siphoned off and remained unpaid," it alleged.

Sethuraman, in a statement, dismissed the allegations as "baseless". He denied any connection with Virk or any transactions related to her.

Detailing about Virk's web portal, the agency said it purportedly sold FDA-approved beauty products. However, the ED said the products listed on the website have been found to be non-existent and the portal lacks a user registration option and is plagued by persistent payment gateway issues.

A scrutiny of the website uncovered minimal social-media engagement, an inactive WhatsApp contact number and an absence of transparent organisational details, all of which reinforce the finding of "non-genuine" commercial activity, the ED claimed.

"These factors, including limited product range, inflated pricing, false claims of FDA approval and technical inconsistencies, indicate that the website serves as a front for laundering funds," it said.

Another social media-hosted bio data of the woman said she is a certified cosmetologist.

The ED said several "incriminating" documents were seized during the searches and the statement of a man named Farrukh Ali, stated to be an associate of Virk, was recorded.

The money-laundering case stems from an FIR lodged by the Punjab Police.

Sethuraman said that the home loan he received from Reliance Capital was granted following due process and was secured by the property offered as collateral.