Parliament Approves Bill to Decriminalise Minor Offences for Ease of Business
The Lok Sabha passed the Jan Vishwas (Amendment) Bill, 2026, which replaces minor criminal offences across 80 laws with civil penalties to boost trust.
Quick Revision
The Lok Sabha passed the Jan Vishwas (Amendment of Provisions) Bill, 2026.
The Bill aims to decriminalise minor offences.
It affects 80 different central acts.
Imprisonment for minor offences will be replaced with graded civil penalties.
The government's objective is to promote trust-based governance.
Another goal is to reduce the burden on courts.
The Bill seeks to improve the ease of doing business.
Opposition members expressed concerns about corporations getting away with offences by paying fines.
Key Dates
Key Numbers
Visual Insights
Jan Vishwas Bill: Key Numbers
Highlights key statistics related to the Jan Vishwas (Amendment of Provisions) Bill, 2026, as passed by the Lok Sabha.
- Central Acts Amended
- 80
- Bill Introduced (Previous Iteration)
- 2025
- Acts Amended by 2023 Act
- 42
- Proposed Increase in Fines (Every 3 Years)
- 10%
This indicates the broad scope of the reform, impacting a significant number of laws.
Shows the legislative journey and progression of the reform.
Provides historical context for the current bill, showing a phased approach to decriminalisation.
This mechanism aims to keep penalties relevant against inflation, ensuring their deterrent value.
Mains & Interview Focus
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The passage of the Jan Vishwas (Amendment of Provisions) Bill, 2026 marks a significant policy pivot, moving away from a punitive regulatory regime towards a more facilitative one. This legislative action, decriminalising minor offences across 80 central acts, aims to inject much-needed trust into the government-business relationship. For too long, India's regulatory landscape has been characterized by an over-criminalization of minor infractions, a legacy that stifled entrepreneurial spirit and burdened the judicial system.
This reform directly addresses the persistent challenge of Ease of Doing Business. By replacing imprisonment with graded civil penalties, the government signals a clear intent to reduce compliance costs and the fear of criminal prosecution for businesses. This is not merely about improving India's global rankings but about fostering a domestic environment where innovation and growth are encouraged, not hampered by archaic laws.
However, the concerns raised by the opposition regarding potential corporate impunity are not entirely unfounded. While the intent is noble, the implementation mechanism for civil penalties must be robust, ensuring that fines are substantial enough to act as a genuine deterrent, especially for large corporations. A mere slap on the wrist will undermine the very purpose of regulation and could lead to a perception of selective justice.
Furthermore, the Bill's stated objective of reducing the burden on courts is a welcome development. India's judicial system is notoriously overburdened, with millions of cases pending. Diverting minor offences from criminal courts to administrative adjudication or civil tribunals can free up judicial resources for more serious crimes and complex civil disputes. This rationalisation of the justice delivery system is a critical step towards ensuring timely justice, a fundamental right often delayed.
Ultimately, the success of the Jan Vishwas Bill will depend on a careful balance between fostering trust and maintaining accountability. The shift towards trust-based governance is progressive, but it necessitates vigilant oversight and a transparent enforcement mechanism for civil penalties. This legislative change represents a crucial step in modernizing India's regulatory framework, provided the spirit of the law is upheld in its execution.
Exam Angles
GS Paper II: Governance - Reforms in legal framework, ease of doing business, administrative adjudication.
GS Paper II: Polity - Role of Parliament in law-making, delegation of powers to administrative authorities.
GS Paper III: Economy - Impact of regulatory reforms on economic growth and investment.
UPSC Prelims: Questions on specific amendments, acts involved, and the objectives of the Jan Vishwas Bill.
View Detailed Summary
Summary
The government has passed a new law called the Jan Vishwas Bill. This law changes many old rules so that small mistakes or minor rule-breaking by businesses will no longer lead to jail time. Instead, businesses will pay fines, making it easier to do business in India and helping courts focus on bigger cases.
The Jan Vishwas (Amendment of Provisions) Bill, 2025, has been introduced in Lok Sabha and referred to a Select Committee. This Bill proposes amendments to 17 laws, aiming to decriminalise a range of minor offences across sectors like municipal governance, motor vehicle regulation, commodity boards, apprenticeships, and export-related activities. The primary objective is to ease compliance burdens and foster a more trust-based governance approach, building on the Jan Vishwas (Amendment of Provisions) Act, 2023, which amended 42 laws.
The Bill converts several offences punishable by fines into civil penalties, allowing for administrative adjudication by designated Adjudicating Officers, thereby reducing court prosecution and removing imprisonment for many procedural and technical violations. Key amendments include replacing imprisonment with civil penalties for driving while unfit under the Motor Vehicles Act, 1988, and removing imprisonment for non-compliance with orders under the Electricity Act, 2003, imposing only a fine. Offences like obstructing an officer under the Agricultural and Processed Food Products Export Development Authority Act, 1985, are being removed entirely.
The Bill also introduces a 10% increase in fines and penalties every three years. For the first instance of certain offences, such as providing false information to the Central Silk Board, the Bill proposes warnings instead of immediate penalties, with monetary penalties for subsequent offences. Under the Legal Metrology Act, 2009, improvement notices will be issued for first-time non-compliance with standards, requiring rectification within a specified time.
The Bill also revises property taxation under the New Delhi Municipal Council (NDMC) Act, 1994, specifying building and vacant land taxes and establishing a Municipal Valuation Committee, while retaining imprisonment for wilful default in property tax payment. This reform is relevant for UPSC Mains (GS Paper II: Governance) and UPSC Prelims.
Background
The Jan Vishwas (Amendment of Provisions) Bill, 2025, is a continuation of the government's initiative to reform and simplify laws. The first Jan Vishwas Act was passed in 2023, amending 42 different laws. The core idea behind these reforms is to reduce the number of minor offences that attract criminal penalties, particularly imprisonment, and instead impose civil penalties. This aims to reduce the burden on the judiciary and promote ease of doing business by making compliance less onerous.
The rationale for decriminalising minor offences stems from the observation that many procedural or technical violations, which do not involve significant harm to society, are often treated as criminal offences. This leads to overcrowding of courts and delays in justice delivery. By shifting these to a civil penalty regime, the government seeks to streamline the process and allow for faster resolution through administrative mechanisms.
This approach aligns with global trends of regulatory reform, where countries are moving towards more facilitative and trust-based governance. The goal is to create an environment where businesses and individuals can operate with greater confidence, knowing that minor lapses will be handled through administrative means rather than criminal prosecution, thereby fostering economic activity.
Latest Developments
The Jan Vishwas (Amendment of Provisions) Bill, 2025, has been referred to a Select Committee of Lok Sabha, chaired by Mr. Tejasvi Surya. The Bill amends 17 Acts, including the Delhi Municipal Corporation Act, 1957, the Apprentices Act, 1961, the Motor Vehicles Act, 1988, the New Delhi Municipal Council (NDMC) Act, 1994, and the Legal Metrology Act, 2009. It introduces mechanisms like 'improvement notices' for certain offences under the Legal Metrology Act, 2009, requiring rectification within a specified time before penalties are imposed for subsequent offences.
The Bill also proposes a systematic increase in fines and penalties, mandating a 10% rise every three years. This aims to ensure that monetary penalties remain relevant and retain their deterrent effect over time. Furthermore, it designates Adjudicating Officers to levy these penalties, streamlining the adjudication process and removing the need for court prosecution for many minor infractions. The Bill also specifies appellate mechanisms for orders passed by these officers.
Following the recommendations of the Joint Parliamentary Committee that examined the 2022 Bill, the government is encouraged to continue this reform process by reviewing other central laws. The Committee also advised that States and Union Territories undertake similar reforms and suggested institutionalising the reform process by constituting a standing expert group for periodic review and harmonisation of adjudication mechanisms across ministries.
Sources & Further Reading
Practice Questions (MCQs)
1. Consider the following statements regarding the Jan Vishwas (Amendment of Provisions) Bill, 2025:
- A.It proposes amendments to 42 existing laws to decriminalise minor offences.
- B.It aims to replace imprisonment with civil penalties for a range of offences.
- C.It introduces a 5% increase in fines and penalties every three years.
- D.It removes the provision for Adjudicating Officers to levy penalties.
Show Answer
Answer: B
Statement A is incorrect. The Jan Vishwas (Amendment of Provisions) Bill, 2025 proposes amendments to 17 laws. The Jan Vishwas (Amendment of Provisions) Act, 2023, amended 42 laws. Statement B is correct. The Bill aims to decriminalise a range of offences and convert several fines into civil penalties, enabling administrative adjudication without court prosecution. Statement C is incorrect. The Bill provides for a 10% increase in fines and penalties every three years, not 5%. Statement D is incorrect. The Bill designates Adjudicating Officers to levy these penalties.
2. Which of the following Acts are proposed to be amended by the Jan Vishwas (Amendment of Provisions) Bill, 2025?
- A.The Indian Penal Code, 1860 and the Code of Criminal Procedure, 1973
- B.The Motor Vehicles Act, 1988 and the Electricity Act, 2003
- C.The Companies Act, 2013 and the Securities Contracts (Regulation) Act, 1956
- D.The Income Tax Act, 1961 and the Goods and Services Tax Act, 2017
Show Answer
Answer: B
The Jan Vishwas (Amendment of Provisions) Bill, 2025, proposes amendments to 17 laws. Among the options provided, the Motor Vehicles Act, 1988, and the Electricity Act, 2003, are explicitly mentioned in the source as being amended by this Bill. The other Acts listed are not mentioned in the provided text as being part of the 17 Acts amended by the 2025 Bill.
3. The Jan Vishwas (Amendment of Provisions) Bill, 2025 introduces the concept of 'improvement notices' for certain offences. Under which Act is this mechanism primarily proposed?
- A.The Apprentices Act, 1961
- B.The Legal Metrology Act, 2009
- C.The New Delhi Municipal Council Act, 1994
- D.The Coir Industry Act, 1953
Show Answer
Answer: B
The source material explicitly states that the Bill introduces improvement notices for several offences under the Legal Metrology Act, 2009. These notices require rectifying non-compliance within a specified time. The other Acts mentioned are also part of the Bill's amendments but do not feature the 'improvement notice' mechanism as prominently described for the Legal Metrology Act.
4. Which of the following statements correctly describes the proposed changes to property taxation under the New Delhi Municipal Council (NDMC) Act, 1994, as per the Jan Vishwas (Amendment of Provisions) Bill, 2025?
- A.The Bill removes all provisions for levying property tax under the NDMC Act.
- B.Property tax will now consist of a building tax and a vacant land tax, and a Municipal Valuation Committee will be established.
- C.The Bill introduces advertisement tax and removes building tax.
- D.Wilful default in payment of property tax will be punishable only with a fine, with no imprisonment.
Show Answer
Answer: B
Statement A is incorrect. The Bill amends the property taxation system, it does not remove all provisions. Statement B is correct. The Bill specifies that property tax will consist of a building tax and a vacant land tax and establishes a Municipal Valuation Committee. Statement C is incorrect. The Bill removes provisions for levying advertisement tax, not introduces it, and retains building tax. Statement D is incorrect. The Bill retains imprisonment for wilful default in payment of property tax, along with a fine.
Source Articles
Jan Vishwas (Amendment) Bill gets Lok Sabha nod: ‘It was Colonial thought to punish everything’ | India News - The Indian Express
Jan Vishwas 2.0: Why Centre’s Bill to amend 355 provisions across 16 laws matters | Explained News - The Indian Express
Centre set to table Jan Vishwas 2.0 in Lok Sabha: First-time offenders to get ‘Improvement Notice’, not penalty | India News - The Indian Express
About the Author
Anshul MannPublic Policy Enthusiast & UPSC Analyst
Anshul Mann writes about Polity & Governance at GKSolver, breaking down complex developments into clear, exam-relevant analysis.
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