Jan Vishwas (Amendment Of Provisions) Bill, 2025: Decriminalising 288 Provisions For Better Ease Of Business And Ease Of Living

Introduction

India’s journey towards becoming a global economic powerhouse requires not just economic reforms but fundamental changes in its regulatory framework. The Jan Vishwas (Amendment of Provisions) Bill, 2025, represents a watershed moment in this transformation. Introduced in the Lok Sabha on August 18, 2025, by Union Commerce and Industry Minister Shri Piyush Goyal, this landmark legislation proposes to decriminalise 288 provisions across 16 Central Acts, marking the Government of India's continued commitment to trust-based governance and regulatory rationalization¹.

This Bill, often referred to as “Jan Vishwas 2.0,” builds upon the foundation laid by the Jan Vishwas (Amendment of Provisions) Act, 2023, which had earlier decriminalised 183 provisions in 42 Central Acts administered by 19 Ministries/Departments. Together, these reforms represent India’s most comprehensive effort to remove the shackles of colonial era criminalization of minor offences and create a business-friendly ecosystem that balances accountability with entrepreneurial freedom.

Historical Context and the Need for Reform

The Problem of Overcriminalisation in Indian Laws

India’s legal framework has long suffered from the problem of overcriminalization, the inappropriate use of criminal sanctions for conduct that could be more effectively addressed through civil or administrative measures. According to research by the Vidhi Centre for Legal Policy, a staggering 370 of the 882 central laws in India contain criminal provisions covering 7,305 distinct offences. More alarmingly, over 75 percent of all crimes are defined under laws that regulate areas beyond core criminal justice, such as shipping, taxation, financial institutions, and municipal governance².

The consequences of this overcriminalisation have been severe. An Observer Research Foundation (ORF) 2022 report revealed that of 1,536 business laws, over 50 percent carry imprisonment sections, and of 69,233 compliances, a staggering 37.8 percent entail jail terms. This regulatory overreach has created a climate of fear among entrepreneurs, stifled innovation, and deterred investment, all of which have hampered India’s economic growth potential.

Judicial Burden and Systemic Inefficiency

The criminalisation of minor offences has also placed an enormous burden on India’s judicial system. According to the National Judicial Data Grid, there are currently over 3.6 crore pending criminal cases in India’s district courts, with more than 2.3 crore of these being over a year old³. Minor procedural lapses that result in criminal prosecution clog the courts, delaying justice for serious offences and undermining the efficiency of the entire justice delivery system.

The disproportionality of punishments has been another concern. Under existing laws, trivial acts such as milking a cow on the street or failing to properly exercise a pet dog could potentially lead to arrest, violating the fundamental principle of proportionality between crime and punishment⁴.

Scope and Coverage of the Jan Vishwas Bill, 2025

Comprehensive Amendments Across Multiple Sectors

The Jan Vishwas Bill, 2025, proposes amendments to a total of 355 provisions across 16 Central Acts administered by 10 Ministries/Departments. Of these, 288 provisions are being decriminalised to foster Ease of Doing Business, while 67 provisions are being amended to facilitate Ease of Living.

The 16 Acts being amended include crucial pieces of legislation that touch upon various aspects of economic and social life⁵:

1. Reserve Bank of India Act, 1934
2. Drugs and Cosmetics Act, 1940
3. Central Silk Board Act, 1948
4. Tea Act, 1953
5. Apprentices Act, 1961
6. Agricultural and Processed Food Products Export Development Authority Act, 1985
7. Motor Vehicles Act, 1988
8. New Delhi Municipal Council Act, 1994
9. Electricity Act, 2003
10. Micro, Small and Medium Enterprises Development Act, 2006
11. Legal Metrology Act, 2009
12. Textiles Committee Act
13. Coir Industry Act
14. Delhi Municipal Corporation Acts

Notably, the four Acts, the Tea Act, 1953, Legal Metrology Act, 2009, Motor Vehicles Act, 1988, and Drugs and Cosmetics Act, 1940 were part of the Jan Vishwas Act, 2023, and are now being proposed for further decriminalisation under the current Bill.

Key Features and Innovations of the Bill

i. First-Time Offender Provisions

One of the most significant innovations in the Jan Vishwas Bill, 2025, is the introduction of advisory or warning mechanisms for first-time contraventions. The Bill provides that first-time offenders for 76 offences under 10 Acts will receive an advisory or warning rather than immediate penal action.

This approach is based on the principle that genuine mistakes or inadvertent violations should not be met with the same severity as willful or repeated misconduct. For example, under the Legal Metrology Act, non-standard weights and measures that previously attracted a penalty of ₹1 lakh will now be addressed through an improvement notice with a specified rectification timeline.

ii. Decriminalisation and Replacement with Monetary Penalties

The core thrust of the Bill is the removal of imprisonment clauses for minor, technical, or procedural defaults. These are being replaced with monetary penalties or warnings, ensuring that the punishment is proportionate to the nature of the offence

For instance, the Bill proposes replacing the existing three-month imprisonment for non-compliance with orders under the Electricity Act, 2003, with a fine ranging between Rs. 10,000 and Rs. 10 lakh. This ensures accountability while removing the threat of incarceration for what are essentially administrative or technical violations.

iii. Rationalisation and Graduated Penalties

The Bill introduces a more nuanced approach to penalties, making them proportionate to the gravity and frequency of offences. Penalties have been rationalized with graduated structures that impose higher fines for repeated offences, thus maintaining deterrence while encouraging compliance.

A particularly innovative feature is the provision for automatic 10 percent penalty increases every three years. This mechanism ensures that penalties remain effective deterrents in the face of inflation without requiring fresh legislative amendments, thereby reducing administrative burden and parliamentary time.

iv. Adjudication Mechanisms

To reduce the burden on courts, the Bill empowers designated officers to impose penalties through administrative processes. This administrative adjudication mechanism allows for quicker resolution of violations while freeing up judicial resources for more serious criminal matters. The approach balances efficiency with fairness, as appropriate appeal mechanisms remain available for those aggrieved by administrative decisions.

Specific Amendments for Ease of Living

i. New Delhi Municipal Council Act Amendments

The Bill proposes 47 amendments to the New Delhi Municipal Council Act, 1994, with significant reforms to the property tax system. The traditional “rateable value” method of property tax assessment is being replaced with the Unit Area Method, introducing a transparent and formula-based system linked to property size, usage, and location⁶. According to experts, this will simplify assessment, reduce discretion, and enhance compliance.

ii. Motor Vehicles Act Amendments

Twenty provisions of the Motor Vehicles Act, 1988, are being amended to provide relaxation and clarity in compliance. Key reforms include:

• State - wide vehicle registration instead of jurisdiction-specific registration
• Extension of the reporting period for vehicle registration cancellation from 14 to 30 days
• Extension of the insurer intimation period on transfer of insurance certificate from 14 to 30 days

These reforms aim to simplify procedures for citizens, improve transparency, and provide relief in vehicle-related compliances.

Sectoral Examples of Decriminalisation

Apprentices Act, 1961

Under the Apprentices Act, 11 offences that currently carry fines of Rs. 1,000 are being converted to advisory for first contravention and censure, warning, or penalty for subsequent contraventions. These include violations such as:

• Requiring an apprentice to work overtime without approval of the Apprenticeship Adviser
• Refusal to furnish information or returns
• Employing an apprentice on work not connected to their training

Central Silk Board Act, 1948

The Bill proposes significant changes to penalties under the Central Silk Board Act. For furnishing false statements, imprisonment of up to one year and a fine of up to Rs. 1,000 is being converted to only a warning for the first instance and a penalty between Rs. 25,000 and Rs. 1 lakh for continuing or repeated offences. Similarly, imprisonment and fines for obstructing Board officers are being removed⁷.

Agricultural and Processed Food Products Export Development Authority Act, 1985 (APEDA)

Under APEDA, the fine of up to Rs.5,000 for failure to furnish returns or furnishing false reports is being converted to a warning for first-time contraventions and a minimum penalty of Rs. 10,000 for subsequent contraventions⁸.

Benefits and Expected Impact

Enhancement of Ease of Doing Business

The Jan Vishwas Bill, 2025, is expected to significantly enhance India’s position in global ease of doing business rankings. By removing the threat of imprisonment for minor violations, the Bill creates a more predictable and business-friendly environment that will encourage both domestic and foreign investment⁹.

Reduction of Corruption

The shift from criminal to civil penalties is expected to reduce opportunities for corruption. When minor violations carry criminal sanctions, they create leverage for corrupt officials to extract bribes or unofficial payments. Civil penalties, being more transparent and predictable, minimize such discretionary power and reduce corruption¹⁰.

Empowerment of Entrepreneurs

The Bill empowers entrepreneurs by reducing the fear of criminal action for technical lapses. This psychological shift is crucial for fostering innovation and risk-taking, essential ingredients for entrepreneurial success.

Judicial Relief

By unburdening courts through administrative adjudication and decriminalisation, the Bill will allow the judiciary to focus on serious crimes, thereby improving the overall efficiency of the justice delivery system.

Challenges and Concerns

While the Jan Vishwas Bill, 2025, represents a significant step forward, it is not without its challenges and concerns:

Limited Coverage

Despite its ambitious scope, the Bill leaves over 20,000 imprisonment sections untouched. This means that significant work remains to be done in comprehensively addressing the problem of overcriminalisation¹¹.

Implementation Challenges

Reforms often face delays at the ground level. The success of the Jan Vishwas Bill will depend on effective implementation, including the notification of rules, designation of adjudicating officers, and rollout of digital compliance infrastructure.

Risk of Over-Trivialisation

There is a concern that some “minor” offences, particularly those related to safety or public health, carry real risks and should not be completely decriminalised. Striking the right balance between reducing regulatory burden and maintaining essential safeguards is crucial.

Labour Rights Concerns

Decriminalising certain labour law violations may weaken protections for workers. It is essential to ensure that reforms do not come at the expense of vulnerable sections of society.

The Broader Vision: Minimum Government, Maximum Governance

The Jan Vishwas Bill, 2025, is not merely a technical exercise in legal drafting; it represents a fundamental shift in the philosophy of governance. The Bill embodies the Government’s commitment to “Minimum Government, Maximum Governance” a principle that seeks to reduce unnecessary state intervention while enhancing the quality and effectiveness of governance.

This approach recognizes that trust is the foundation of a modern, efficient state-citizen relationship. By shifting from a presumption of criminality to a presumption of good faith, the Bill signals confidence in citizens’ willingness to comply with laws when the regulatory framework is reasonable, proportionate, and transparent.

The Road Ahead

The Jan Vishwas Bill, 2025, has been referred to a Select Committee of the Lok Sabha for detailed examination. The Committee will scrutinize the Bill's provisions, consult stakeholders, and make recommendations before it returns to Parliament for final approval. The report is expected in the next parliamentary session.

Once enacted, the legislation will require extensive implementation efforts, including:

• Notification of rules and procedures by various ministries
• Designation and training of adjudicating officers
• Development of digital compliance infrastructure
• Creation of awareness campaigns to inform businesses and citizens about the new framework

The Government has already announced plans for additional reforms, including Jan Vishwas Bill 3.0, which will further expand the decriminalisation agenda¹². This indicates a sustained commitment to regulatory reform rather than a one-time exercise.

Conclusion

The Jan Vishwas (Amendment of Provisions) Bill, 2025, marks a significant milestone in India’s regulatory reform journey. By decriminalising 288 provisions across 16 Central Acts, the Bill addresses the twin objectives of improving ease of doing business and ease of living. It reflects a maturity in governance thinking, recognizing that not every violation requires criminal prosecution and that proportionate, trust-based regulation can be more effective than punitive criminalization.

If enacted and effectively implemented, the Bill has the potential to reduce pendency in courts, enhance trust between the state and citizens, and strengthen India’s image as a business-friendly destination. It represents a paradigm shift from colonial-era criminalization to modern, trust-based governance, a transformation essential for India’s aspirations of becoming a developed nation by 2047.

As India continues its journey of regulatory reform, the Jan Vishwas Bill, 2025, will be remembered as a crucial stepping stone towards creating a legal framework that balances accountability with freedom, deterrence with encouragement, and regulation with trust. It embodies the vision of an India where businesses can thrive without fear, citizens can live with dignity, and governance is truly in service of the people.

Footnotes

^{1. Press Release:Press Information Bureau}

^{2. Jan Vishwas 2.0 - Towards Trust-Based Governance}

^{3. Ibid}

^{4. Ibid}

^{5. Vishwas 2.0 Bill 2025: Key Decriminalisation Details}

^{6. Govt tables Jan Vishwas Bill 2.0 to decriminalise 288 provisions for ease of business | Business News - The Indian Express}

^{7. Ibid}

^{8. Ibid}

^{9. Jan Vishwas (Amendment of Provisions) Bill, 2025}

^{10. Ibid}

^{11. Ibid}

^{12. 'Jan Vishwas Bill-3 underway' says Piyush Goyal to decriminalise ...}

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