Policy Update
Suranjana Mitra
In a bid to create a comfortable and friendly environment for doing business, Jan Vishwas Bill 2.0 has been introduced in the Union Budget 2025-26 speech. Finance Minister Nirmala Sitharaman, while addressing a post-Budget webinar via video conferencing on “Regulatory, Investment and EODB (Ease of doing business) reforms”, stated that the government is committed to the simplification of regulatory processes and introduced the Jan Vishwas Bill 2.0 to decriminalise over 100 legal provisions which are outdated to achieve greater ease of doing business in the country.
Background
The Jan Vishwas (Amendment of Provisions) Act, 2022, was introduced in Lok Sabha on December 22, 2022. It aimed to decriminalise minor offences across 42 Central Acts. This initiative aimed to reduce the burden of criminal penalties which are triggered by minor technical lapses, thus promoting ease of doing business in the country. The Bill was referred to a Joint Parliamentary Committee (Chair: Mr. P.P. Chaudhary), which submitted its report on March 17, 2023.
After successfully decriminalising 183 Central Acts administered across a spectrum of 19 Ministries or Departments, the Jan Vishwas Bill 2.0 further aims to bring reforms towards unburdening the judiciary and reducing litigation time and costs. Civil penalties and administrative actions will be introduced for minor technical and procedural lapses.
The Ministry of Commerce and Industry had termed Jan Vishwas 2.0 a “major step towards aligning India’s regulatory framework with global business standards, promoting investor confidence, and facilitating smoother business operations”. The introduction of Jan Vishwas 2.0 in the Budget speech of 2025-26 follows the Ministry’s statement in September 2024 that the Department for Promotion of Industry and Internal Trade (DPIIT) was “working on about 100 rules and laws of various departments of government to bring Jan Vishwas 2.0 Bill”.
Functioning
The 2023 Act has taken measures such as pragmatic revision of fines and penalties commensurate to the offence committed, appointing adjudicating officers and appellate authorities, and the periodic increase in the quantum of fines and penalties. The Central Government aimed to appoint one or more adjudicating officers who would be responsible for determining penalties according to the evidence and conduct inquiries into the violations of some acts. According to Section 3 of the 2023 Act, the fines and penalties of the 42 Central Acts would be increased by 10% every three years.
Decriminalization is proposed to be achieved in the following manner: –
(i) Both Imprisonment and/or Fine are proposed to be removed in some provisions.
(ii) Imprisonment is proposed to be removed and fine retained in a few provisions.
(iii) Imprisonment is proposed to be removed and Fine enhanced in a few provisions.
(iv) Imprisonment and Fine are proposed to be converted to Penalty in some provisions.
(v) Compounding of offences is proposed to be introduced in a few provisions.
The 2023 Act covers amendments in statutes across a span of over 100 years, which include the Press and Registration of Books Act of 1867, the Indian Post Office Act of 1898, the Boilers Act of 1923, the Indian Forest Act of 1927 to the recent laws like the Prevention of Money Laundering Act, 2002 and the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) of 2016. All offences under the Indian Post Act of 1898 have been removed.
In August 2023, the government had explained that this law was an endeavour towards establishing a balance between the severity of the offence and the gravity of the prescribed punishment. It was a step to ensure that businesses and citizens adhere to the law without losing its rigour.
The Jan Vishwas Bill 2.0 will be tabled during the monsoon or winter sessions of Parliament, 2025. Provisions that were not decriminalized in the previous drive will be included in the new bill.
The Department for Promotion of Investment and Internal Trade (DPIIT) is spearheading the legislative work on Jan Vishwas Bill 2.0. It has already reviewed over 900 provisions across 129 laws administered by more than 30 ministries or departments. Eighty-two out of these provisions have been marked as priority areas for decriminalization or modification. CII has submitted a list of provisions covering 39 centrally enforced legislations in different areas such as labour, environment, consumer, securitization, securities, foreign exchange, banking, financial laws, etc.
Jan Vishwas Bill 2.0 will not only work towards decriminalisation but also aims to repeal redundant laws, abolish duplicate provisions and remove regulations that are no longer relevant.
The highest number of provisions up for amendments are from the Ministry of Road Transport and Highways – 25 provisions. 21 provisions under the Motor Vehicles Act 1988 are to be revised. The Companies Act will go through another round of amendments, separately, so that companies can get some relief from violations of technical breaches.
The Ministry of Skill Development and Entrepreneurship has identified 13 provisions, while the Consumer Affairs Ministry will look into 12 provisions.
Performance
The existing Jan Vishwas (Amendment of Provisions) Act, 2023 has decriminalised 183 Central Acts administered across a spectrum of 19 Ministries or Departments. The objective of the Jan Vishwas Act 2023 was to remove archaic provisions that did not serve the evolving technological and business environment.
According to the director general of the Confederation of Indian Industry (CII), Chandrajit Banerjee, decriminalisation under the Jan Vishwas Act of 2023 offered significant relief for the industry.
Many believe that the powerful lobbies have utilised this opportunity to further their interests. They cite some facts to support this cause, for example, the Pharmaceutical industry has managed to move a key penal provision in the law to the list of compoundable offences. This provision provided a deterrence from the manufacturers of sub-standard drugs but now these manufacturers will escape imprisonment by paying a paltry fine. Similarly, Chapter X of the Indian Post Office Act, 1898 has been deleted from the law. This chapter criminalised a range of acts which include the “Opening, detaining or delaying postal articles”.
Hence, the implementation of the Act needs to look into such matters which do not underestimate serious offences under the title of “minor offences” or “ease of doing business” which can later on affect the bigger picture.
Impact
The review of old provisions is very crucial for the working of the State machinery. This decriminalisation drive is utilising this opportunity to review the archaic provisions and make necessary changes to adapt to the changing times and demands. The provisions that are facing amendments often slow down the smooth workings of the system by adding the burden of legal risks.
The Finance and Corporate Affairs Minister, Nirmala Sitharaman said, “Robust manufacturing sector, free from unnecessary regulatory bottlenecks, will further attract both domestic and foreign investments, driving economic growth and positioning India as a global player. Our government has over 42,000 compliances removed and over 3,700 legal provisions have been decriminalised since 2014. Will bring Jan Vishwas Bill 2.0 to further decriminalise over 100 provisions in various laws to further simplify processes for businesses”.
Emerging issues
Over-Trivialisation – “Ease of doing business” is a positive approach towards the improvement of trade and investment. While decriminalization is necessary to remove unwanted and burdensome provisions, it is also going to make it easy for people to flout the rules. For example, under Chapter III, Section 11 of the Factories Act, 1948, periodic whitewashing of walls every 14 months and repainting them every three to five years are mandatory to maintain hygiene. Failing to fulfil this requirement can lead to imprisonment of up to 2 years or fines of Rs 1 lakh. These also include minor lapses like delayed maintenance records or insufficient safety measures. Under the same Act, section 94 states that anyone producing false fitness certificates can be penalized with up to two months of imprisonment or fines of Rs 1,000.
The punishment does not commensurate with the offence. But some amount of accountability is necessary to ensure that these lapses are not overlooked because of their trivialisation. Though these provisions seem to be of little importance, they are still much needed to maintain the functioning of a well-oiled machinery, i.e., the system.
Imposition of Fines and penalties – Decriminalisation will not be fully successful until there are fines and penalties which will still be obstacles in the path of “Ease of Doing Business”. Many analysts are debating whether the imposition of fines or penalties is a proper way of decriminalisation as there still remain some hindrances.
Research – Appropriate research is required to identify the important policies which need to be reassessed and reformed rather than decriminalising them altogether. As these old policies are no longer fully relevant, some policies may need some modifications to make them relevant to the present situation.
Way Forward
A balanced reform approach—shifting minor infractions to civil penalties, implementing self-declaration mechanisms, and developing a unified digital compliance framework—can streamline regulatory processes while maintaining worker protections.
Institutionalization – True decriminalization can be achieved through structured institutionalization. There needs to be proper supervision of the implementation of the measures so that the fines and penalties are no longer required.
Voluntary Compliance – the system needs to ensure that there is sufficient stakeholder engagement, which brings awareness and leads to voluntary compliance of these provisions.
There are several offences which if removed will pave the way for a smoother and easier working of bureaucracy but the government also has to consider the importance of the existence of some rules which act as deterrents towards harming the public directly or indirectly.
Conclusion
With the Jan Vishwas Bill 2.0, a lot of these issues can be properly addressed and resolved. This will provide the government with a chance to reassess the penalties and increase compliance via a regulatory framework that is transparent and predictable. Such a regulatory framework will benefit both the workers and the businesses.
References
1. DPIIT working on Jan Vishwas 2.0 to further give a boost to “Make in India.” (n.d.) https://pib.gov.in/PressReleaseIframePage.aspx?PRID
2. Government to introduce Jan Vishwas Bill 2.0: What’s changing and other details. (2025, February 1). Moneycontrol.
https://www.moneycontrol.com/news/business/government-to-introduce-jan-vishwas-bill-2-0-what-s-changing-and-other-details-12927355
3. Kumar, G. C. P. D. (2025, March 31). India’s next big corporate reform: Decriminalise over 100 offences by year-end | Mint. Mint. https://www.livemint.com/industry/decriminalisation-ease-of-doing-business-jan-vishwas-bill-2-0-corporate-offences-fines-arrests-court-trials-jail-terms-11743325516857
4. Lok Sabha passes Jan Vishwas (Amendment of Provisions) Bill, 2023 in Parliament. (n.d.). https://pib.gov.in/PressReleasePage.aspx?PRID
5. Madhu Damodaran, & Madhu Damodaran. (2025, March 6). The Jan Vishwas Bill 2.0: An opportunity towards Progressive labour Reforms. Bar And Bench – Indian Legal News. https://www.barandbench.com/law-firms/view-point/the-jan-vishwas-bill-20-an-opportunity-towards-progressive-labour-reforms
6. Mathur, B. (2025, March 4). Jan Vishwas Bill 2.0: Govt working to boost trust-based governance, says FM. www.business-standard.com. https://www.business-standard.com/budget/news/jan-vishwas-bill-2-decriminalisation-business-reforms-nirmala-sitharaman-125030400966_1
7. Rajagopal, K. (2025, February 1). Union Budget 2025: Government to introduce Jan Vishwas 2.0 for greater ease of doing business. The Hindu. https://www.thehindu.com/business/budget/union-budget-2025-government-to-introduce-jan-vishwas-20-for-greater-ease-of-doing
8. T, P. R. (2023, October 24). Jan Vishwas Act, 2023: Symbol of a broken Legislative process. The India Forum. https://www.theindiaforum.in/public-policy/jan-vishwas-act-2023-symbol-broken-legislative-process
9. Vishwas Bill 2.0 to decriminalise over 100 provisions, simplify business processes: FM Sitharaman. (n.d.). https://ddnews.gov.in/en/vishwas-bill-2-0-to-decriminalise-over-100-provisions-simplify-business-processes-fm-sitharaman/
About the Contributor: Suranjana Mitra is a Research Intern at IMPRI and holds a postgraduate degree in Political Science. She has strong interest in Public policy analysis and policy making.
Acknowledgement: The author extends sincere gratitude to the IMPRI team for reviewing the article and for providing the opportunity to write the article.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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