Bill in Parliament proposes penalties of upto ₹5 crore for misuse of AI systems

A private member’s Bill introduced in Parliament proposes penalties of up to ₹5 crore for the misuse of artificial intelligence (AI) systems.

The Artificial Intelligence (Ethics and Accountability) Bill, 2025, introduced in the Lok Sabha by BJP MP Bharti Pardhi, seeks to establish a statutory ethics and accountability framework governing the development and deployment of AI technologies across India.

It seeks penalties for unauthorised AI-based surveillance, discriminatory algorithmic decision-making and failure to ensure transparency and accountability in AI-driven processes.

The Bill proposes the constitution of an Ethics Committee for Artificial Intelligence by the Central government. The Committee would be headed by a chairperson with expertise in ethics and technology and would include representatives from academia, industry, civil society and government, along with experts in law, data science and human rights.

The Committee would be responsible for framing ethical guidelines for AI technologies, monitoring compliance, reviewing instances of misuse or bias and promoting awareness and capacity-building among developers, deployers and users of AI systems.

"The Bill emphasizes the importance of a balanced approach to foster AI’s positive impacts while safeguarding against its potential misuse. By empowering an independent Ethics Committee and prescribing robust penalties for violations, this legislation seeks to ensure AI technologies serve the greater good and uphold democratic values," the Statement of Objects and Reasons reads.

The proposed law places specific limits on the use of AI for surveillance, providing that such use must be confined to lawful purposes and would require prior approval from the Ethics Committee.

In critical decision-making areas such as law enforcement, financial credit and employment, AI systems would be subject to stringent ethical scrutiny, it states. The Bill provides that such systems must not discriminate on the basis of race, religion or gender and must undergo ethical review by the Committee before deployment.

The Bill imposes detailed responsibilities on developers of AI systems to ensure transparency and prevent algorithmic bias.

Developers would be required to disclose the intended purpose and limitations of AI systems, the data sources and methodologies used for training algorithms, and the reasons for AI-driven decisions that have an impact on individuals.

To address algorithmic bias, the Bill mandates regular audits, diversity and inclusivity in training datasets, and withdrawal of AI systems that exhibit significant bias until corrective measures are implemented. Developers would also be required to maintain records demonstrating compliance with ethical standards under the proposed law.

Any individual or group affected by the misuse of AI technologies would be entitled to file complaints before the Ethics Committee. The Committee would be empowered to investigate complaints and recommend penalties or remedial measures.

Violations of the proposed law could attract fines of up to ₹5 crore, depending on the severity of the breach, along with suspension or revocation of licences for deploying AI systems. In cases of repeat violations, the Bill provides for the possibility of criminal liability, as may be prescribed.

[Read Bill]