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Informist, Saturday, Feb. 1, 2025

 

By Surya Tripathi

 

NEW DELHI – The government will bring out the Jan Vishwas Bill 2.0 Bill to decriminalise more than 100 provisions under various laws, Union Finance Minister Nirmala Sitharama said in the Union Budget for 2025-26 (Apr-Mar) speech on Saturday. Earlier, the government had come up with the Jan Vishwas (Amendment of Provisions) Act, 2023, to decriminalise and rationalise certain minor offences across 42 central acts and improve the ease of doing business. The 2023 Act had eliminated 183 criminal provisions across 19 ministries. 

 

Raheel Patel, partner at Gandhi Law Associates, told Informist that the government's decision to introduce Jan Vishwas Bill 2.0 was a significant move towards reducing regulatory burden and making India's legal framework more business- and citizen-friendly. 

 

On possible legal provisions that could be decriminalised, Patel said that provisions under the Companies Act, 2013, related to minor non-compliance issues such as late filing of returns or procedural lapses could be converted into civil penalties instead of criminal prosecution. Patel said that certain tax violations such as late goods and services tax filing or procedural errors, could be treated as administrative penalties rather than criminal offences. 

 

Further, provisions under income tax, goods and services tax, and Securities and Exchange Board of India regulations may see further relaxation to support businesses, said Patel. Minor infractions under the Consumer Protection Act, 2019, especially those related to misleading advertisements or procedural non-compliance, could also be relaxed to encourage better compliance without fear of imprisonment, he added.

 

Gauhar Mirza, partner at Cyril Amarchand Mangaldas, said the Jan Vishwas Bill 2.0 would cover laws in industries such as agriculture, environment, trade, labour, and commerce, and lead to possible changes in the Drugs and Cosmetics Act, 1940, and Food Safety and Standards Act, 2006, among others.

 

On the effects of Jan Vishwas 2.0 on businesses and the economy, Patel said that the decriminalisation of these provisions would have a transformative effect on India's business climate. By shifting from criminal penalties to civil fines, businesses will experience lower legal risks and greater operational flexibility, said Patel. 

 

Patel said foreign investment was also likely to increase, as global investors prefer jurisdictions with lower compliance risks and predictable legal frameworks. By making India's regulatory environment more business-friendly, Jan Vishwas 2.0 could boost investor confidence and strengthen the country's position in ease of doing business rankings, he said.

 

On the impact of the decriminalisation, Patel said small businesses, freelancers, and self-employed individuals would benefit from lower legal risks and fewer unnecessary penalties for minor mistakes in tax filing, licensing, or employment documentation. Mirza said the impact of decriminalisation on people would be multifold. It will boost business and investments, encourage entrepreneurship by reducing regulatory risks and legal uncertainties, and align with India's ease of doing business initiative to attract domestic and foreign investment, Mirza said.  End

 

Edited by Avishek Dutta

 

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