Alright, here's how i have gone about this case:
It looks that IP Spoofing has been done.....ASSUMING THAT THIS INFERENCE IS RIGHT - THIS IS HOW IT GOES:
First, the Legal Position:
IP address spoofing : In computer networking, the term IP address spoofing or IP spoofing refers to the creation of Internet Protocol (IP) packets with a forged source IP address, called spoofing, with the purpose of concealing the identity of the sender or IMPERSONATING another computing system.
Source:
IP address spoofing - Wikipedia, the free encyclopedia
Impersonator: (Redirected from Impersonate)
As part of a criminal act such as identity theft. This is usually where the criminal is trying to assume the identity of another, in order to commit fraud, such as accessing confidential information, or to gain property not belonging to them.
Source:
Impersonator - Wikipedia, the free encyclopedia
per·son·ate 1 (pûrs-nt)
tr.v. per·son·at·ed, per·son·at·ing, per·son·ates
1. To play the role or portray the part of (a character); impersonate.
2. To endow with personal qualities; personify.
3. Law To assume the identity of, with intent to deceive.
Source:
Personation - definition of Personation by the Free Online Dictionary, Thesaurus and Encyclopedia.
So its quite clear from the above 2 definitions, that This is an Act of Personation.
Now, here are the provisions regarding Personation as per IT Act 2008:
[Section 66D] Punishment for cheating by Personation by using Computer Resource (Inserted vide IT 2008):
Whoever, by means of any communication device or computer resource cheats by personation, shall be punished with imprisonment of either description for a term which may extend to 3 years AND shall also be liable to fine which may extend to Rs. 1,00,000/-.
Source: Information Technology Act 2008, as per link provided by axel & also as per the Bare Act given in the Study material of the ICAI:
http://220.227.161.86/18962sm_finalnew_isca_cp10.pdf (Page 40 of 59)
Section 84C Punishment for attempt to commit offences (Inserted Vide ITA-2008):
Whoever attempts to commit an offence punishable by this Act or causes such an offence to be committed, and in such an attempt does any act towards the commission of the offence, shall, where no express provision is made for the punishment of such attempt, be punished with imprisonment of any description provided for the offence, for a term which may extend to one-half of the longest term of imprisonment provided for that offence, or with such fine as is provided for the offence or with both.
Source:
Cyber Crime, Cyber Law, Cyber pornography
Section 76: Confiscation:
Any computer, computer system, floppies, compact disks, tape drives or any other accessories related thereto, in respect of which any provision of this Act, rules, orders or regulations made there under has been or is being contravened, shall be liable to confiscation:
Provided that
where it is established to the satisfaction of the court adjudicating the confiscation that the person in whose possession, power or control of any such computer, computer system, floppies, compact disks, tape drives or any other accessories relating thereto is found is not responsible for the contravention of the provisions of this Act, rules, orders or regulations made there under, the court may, instead of making an order for confiscation of such computer, computer system, floppies, compact disks, tape drives or any other accessories related thereto, make such other order authorized by this Act against the person contravening of the provisions of this Act, rules, orders or regulations made there under as it may think fit.
Source:
Cyber Crime, Cyber Law, Cyber pornography
Now, the facts of the Case:
It is pretty much clear from the Wordings mentioned by the Thread Starter, that his Cousin & his friends, have done IP spoofing.
As can be seen from above, IP Spoofing is in the nature of "Impersonation", which is a crime under the IT Act 2008. (Erstwhile provisions - IT Act 2000 did not contain these provisions related to Personation)
The Implications:
1) Imprisonment which may extend to 3 years. AND
2) Fine upto Rs. 1,00,000/-
And as can be seen from provisions of Section 76, the crime is prima-facie established & so, confiscation is not illegal.
My personal note on Confiscation: I am not able to make out as to who has the Power to confiscate. So please consider second opinion on that.
---------- Post added at 03:19 AM ---------- Previous post was at 03:14 AM ----------
Forgot to add the fact that The offence can be compounded u/s 77A of the said Act, since the imprisonment term doesnt exceed 3 years, and assuming that he has not been convicted for a similar offence in the past.
And from Practical point of view, if the Company has taken Rs. 15,000 and is ready to close the matter, then he should just thank his stars that he escaped these provisions.