Concerns Over Deepfake Videos: ₹5 Crore Fine Proposed For AI Misuse After Payal Gaming Video Controversy

Concerns Over Deepfake Videos: ₹5 Crore Fine Proposed For AI Misuse After Payal Gaming Video Controversy

Concerns Over Deepfake Videos: ₹5 Crore Fine Proposed For AI Misuse After Payal Gaming Video Controversy

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Private member’s Bill seeks strict penalties, ethics oversight, and accountability to curb AI-driven harassment and deepfake abuse

A private member’s Bill introduced in Parliament has proposed stringent penalties, including fines of up to ₹5 crore, to curb the misuse of artificial intelligence, following growing concerns over deepfake videos, AI-generated harassment, and online defamation. The proposed legislation has gained attention amid the controversy surrounding YouTuber Payal Gaming, whose alleged MMS video circulated online, with claims that AI tools were used to fabricate and spread defamatory content.

The draft law, titled the Artificial Intelligence (Ethics and Accountability) Bill, 2025, has been introduced in the Lok Sabha by BJP MP Bharti Pardhi. The Bill aims to create a comprehensive legal framework to regulate the development, deployment, and use of AI technologies in India, particularly in cases where such tools are used to violate privacy, spread misinformation, or harm individuals.

The Payal Gaming case has highlighted how AI tools can be misused to create fake images, videos, and voices that appear authentic, making it difficult for ordinary users to distinguish truth from manipulation. Such content is often circulated rapidly on social media platforms, causing reputational damage and emotional distress to victims. The proposed legislation seeks to address precisely these risks by introducing accountability and deterrent penalties.

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Under the Bill, severe financial penalties of up to ₹5 crore can be imposed for violations such as unauthorised AI-based surveillance, use of discriminatory algorithms, and failure to ensure transparency in AI-driven processes. Repeated or serious violations could also attract criminal liability, along with suspension or cancellation of licences to deploy AI systems.

A key feature of the Bill is the proposal to establish a Central Ethics Committee for Artificial Intelligence. This committee would be constituted by the central government and headed by a chairperson with expertise in ethics and technology. Its members would include representatives from academia, industry, civil society, government, and experts in law, data science, and human rights. The committee would be tasked with framing ethical guidelines for AI use, reviewing cases of misuse or discrimination, and promoting awareness and capacity-building among developers and users of AI systems.

The proposed law draws a clear boundary on the use of AI for surveillance. It states that AI-based surveillance must only be conducted for lawful purposes and would require prior approval from the ethics committee. This provision is aimed at preventing unchecked monitoring and misuse of technology that could infringe on citizens’ privacy and civil liberties.

The Bill also places strong responsibility on AI developers and deployers. It requires them to disclose the purpose and limitations of AI systems, the data sources and methods used to train algorithms, and the rationale behind AI-driven decisions that have a direct impact on individuals. In sensitive sectors such as law enforcement, financial credit, and employment, AI systems would need to undergo rigorous ethical review before deployment to ensure they do not discriminate on the basis of race, religion, gender, or other protected characteristics.

Importantly, the legislation empowers individuals and groups affected by AI misuse to file complaints directly with the Ethics Committee. The committee would have the authority to investigate such complaints and recommend penalties or corrective measures, providing victims with a formal mechanism for redress.

While the Bill is still at a proposal stage, it reflects growing concern within the political and legal establishment about the unchecked spread of AI-generated content and its potential for abuse. If enacted, the law could mark a significant shift in how India regulates artificial intelligence, balancing innovation with safeguards to ensure technology is not weaponised to harass, defame, or discriminate.

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