In a remarkable move towards fostering trust-based governance and simplifying the business environment, the Indian Parliament passed the Jan Vishwas (Amendment of Provisions) Bill, 2023 (the "Bill") on August 2, 2023. On August 12, 2023, the Central Government published the Jan Vishwas (Amendment of Provisions) Act, 2023. The Act shall come into force on such date as the Central Government may appoint by notification in the Official Gazette. Different dates may be appointed for amendments relating to different enactments mentioned in the Schedule.
The Bill aims to decriminalize 180 offences across 42 laws in diverse sectors, such as agriculture, environment, media, and publication. By introducing this legislation, the government seeks to alleviate the compliance burden on businesses, encourage investment, and enhance the overall well-being of the public.
The Bill was initially introduced in December 2022 and later referred to the Joint Parliamentary Committee in March 2023 for thorough examination and scrutiny. Refer to our previous article on the Bill: Can India's Jan Vishwas Bill 2022 Foster Trust-Based Governance? The primary objectives of the Bill are twofold: firstly, to promote ease of doing business in India and secondly, to establish trust-based governance by reducing the number of offences punishable by imprisonment and replacing them with monetary fines.
Currently, doing business in India involves navigating a vast and intricate web of 1,536 laws, leading to approximately 70,000 compliances. Surprisingly, more than 26,000 of these compliances impose imprisonment as a penalty for non-compliance. This excessive burden of compliances has particularly weighed heavily on small and medium-sized enterprises (MSMEs), hindering innovation, job creation, and economic growth.
Moreover, the lengthy processing times for obtaining necessary approvals and the presence of imprisonment clauses have contributed to escalating costs and dampening the entrepreneurial spirit. To address these challenges and create a more conducive business environment, the Jan Vishwas Bill emerges as a crucial step forward.
Some of the key provisions under the Bill are explained below:
Replacing Imprisonment with Monetary Fines: One of the most significant changes introduced by the Bill is the complete removal or replacement of imprisonment clauses with monetary fines for various offences. This shift aims to make the legal system less punitive and more lenient towards non-compliance.
Compounding of Offences: The Bill allows for the compounding of certain offences, providing individuals or entities charged with such offences the option to settle the matter by paying a specified sum instead of undergoing court prosecution. This provision streamlines the dispute resolution process and encourages amicable settlements.
Appointment of Adjudicating Officers: To ensure fair and efficient determination of penalties and grievance redressal, the Bill provides for the appointment of Adjudicating Officers across various laws. These officers play a vital role in deciding the appropriate penalties for offences committed.
Periodic Revision of Fines and Penalties: The Jan Vishwas Bill incorporates a provision for the periodic revision of fines and penalties. This mechanism ensures that fines are adjusted every three years by an increase of 10% of the minimum amount, aligning them with changing economic conditions.
The significance of the Jan Vishwas Bill lies in its potential to reduce the compliance burden on businesses, attracting more investment, and fostering trust-based governance. By eliminating or reducing the threat of imprisonment, the Bill offers a more conducive environment for promoting economic growth.
However, there are concerns that need to be addressed. Critics argue that monetary fines may not serve as strong enough deterrents compared to the fear of imprisonment, especially for offences with severe environmental implications. Moreover, the technical competence of Adjudicating Officers, particularly for environmental offences, is a subject of scrutiny.
The Jan Vishwas Bill represents a significant step towards achieving trust-based governance and ease of doing business in India. By decriminalizing numerous offences, streamlining penalties, and encouraging amicable resolutions, the government aims to create an environment that promotes innovation, job creation, and economic prosperity. While some concerns have been raised, resolving these issues will pave the way for a more efficient and robust legal framework. The Jan Vishwas Bill is poised to transform India's regulatory landscape, inspiring confidence, and reinvigorating the nation's entrepreneurial spirit.
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