Does Maharashtra Need a Separate Cybersecurity Corporation When a Cyber Cell Exists?

The Maharashtra government has announced the formation of the Maharashtra Cyber Crime Security Corporation (MCCSC), a new entity aimed at tackling cybercrime and strengthening digital security. While the move signals the state’s recognition of rising cyber threats, it also raises several questions: why does Maharashtra need a separate cybersecurity corporation when it already has a cyber cell within the police department? How will this corporation function—will it be a non-profit initiative or a revenue-generating entity?Background of the Cybersecurity Corporation announcementIn February 2024, the Maharashtra government took a significant step toward strengthening cybersecurity by restructuring the existing Maharashtra Cyber Cell into the Maharashtra Cyber Crime Security Corporation (MCCSC). This transition brought a key policy shift—corporate entities in the state must now undergo mandatory annual cybersecurity audits conducted by government-approved firms.

The aim of this mandate is to identify vulnerabilities, ensure businesses adopt advanced security protocols, and mitigate cyber threats. Companies failing to comply within the given timeframe will face penalties, with fines set at Rs 25,000 per day. This decision comes amid rising cyberattacks on businesses, which pose a significant risk to sensitive corporate data and financial integrity.



By implementing these measures, the Maharashtra government intends to set a national precedent for cybersecurity regulations.A Parallel System or a Necessary Upgrade?Maharashtra already has a dedicated cyber cell that investigates online fraud, hacking, and digital crimes. The cyber cell also issues directives to platforms like BookMyShow and Zomato to tackle the black marketing of concert tickets, as seen recently.

Additionally, the central government’s cybercrime portal allows citizens to report cases online. The question, then, is why the need for a separate corporation?The Maharashtra government established the Cyber Command Centre with Rs 838 crore and a dedicated building in Navi Mumbai to enhance the state’s cybersecurity capabilities. Now, it has converted the command centre into MCCSC but has provided little clarity on the specific changes in structure and objectives.

Government-Controlled but Revenue-Driven?One of the most unclear aspects of MCCSC is whether it will function as a government service or a commercial entity. The corporation is being set up under the Companies Act, 2013, with an initial investment of Rs 200 crore and 100% ownership by the state. But the government resolution (GR) suggests that MCCSC will generate revenue by offering cybersecurity services to government and private organizations.

Given that cybersecurity audits for corporate entities have been made mandatory, the corporation is positioned to become a key player in enforcing these regulations. However, the GR does not clearly specify whether additional cybersecurity services, beyond the mandated audits, will also be compulsory for private firms or if they will have the option to choose external security providers. This ambiguity raises concerns about whether businesses will have flexibility in their compliance approach or if MCCSC will effectively monopolize cybersecurity oversight in Maharashtra.

Expansion of Bureaucracy?A board of bureaucrats, including the Additional Chief Secretary (Home), senior officials from the Finance, Planning, and IT departments, and police officers, will govern the corporation. The organization will also recruit a 99-member team and may bring in additional experts in law, finance, and cybersecurity.The concern here is whether this will lead to bureaucratic inefficiency rather than actual improvements in cybersecurity.

Would it have been more effective to strengthen the existing cyber police unit rather than setting up an entirely new corporate entity? If MCCSC operates as a government-controlled company, how will accountability be ensured?Public Interest or a Business Model?Another critical issue is whether MCCSC will prioritize public interest or operate more like a business. While it claims to focus on cyber awareness, training, and audits, there is no clear mention of how ordinary citizens will directly benefit. With increasing cyber fraud, especially targeting vulnerable groups like senior citizens and small businesses, will MCCSC offer free services to individuals, or will they have to rely on the existing cyber police, which remains separate from the corporation?Expert Opinion on the cybersecurity corporationCybersecurity expert Ritesh Bhatia while talking to Free Press Journal questioned the move, stating, “Most corporates are governed by regulators, especially listed companies or those in the BFSI sector.

The focus should be on assisting individuals facing cyber fraud rather than auditing companies. Corporate cybersecurity audits require specialized skills, which the department may lack. CERT-In should step in to establish guidelines for unregulated sectors like manufacturing.

“The Need for More TransparencyCybercrime is indeed a growing concern, but creating a new corporation without clear transparency on its role, funding, and revenue model raises questions. Will MCCSC be just another bureaucratic body that overlaps with existing institutions, or will it genuinely improve cybersecurity efforts in Maharashtra?The government’s decision to commercialize cyber security services through MCCSC could set a precedent for other states. But before other states replicate this model, the government must provide greater clarity on its necessity, financial structure, and accountability mechanisms.

For now, MCCSC’s creation adds another layer to Maharashtra’s cyber governance, but its impact on strengthening cybersecurity or merely expanding bureaucratic influence remains uncertain.Also Read:India’s I4C Issues 426 Takedown Notices Targeting Cyber Fraud, Deepfakes & Digital ArrestsIndia launches Central Cybercrime Registry to strengthen fraud prevention and national cybersecurityRajya Sabha MP C. Ve.

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