Yojana Magazine January 2024 - 3 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

 Page 1


43 January 2024
he journey to Atmanirbhar Bharat (self-
r eliant india) is linked to india taking 
bold and confident steps towards 
enhancing the ease of Doing Business 
and ease of Living. the Jan vishwas (Amendment 
of Provisions) Act, 2023 (‘Jv Act’) spearheaded 
by DPiit, under the able leadership of shri Piyush 
goyal, union Minister of c ommerce and industry, 
The Jan Vishwas (Amendment of Provisions) Act, 2023 strives to 
strike a balance between the severity of the violation and the gravity 
of the prescribed punishment. Many offences, which are either minor 
or technical or procedural in nature and for which the punishment 
prescribed was disproportionate, have been decriminalised under 
the JV Act. The industry believes that the JV Act is only the beginning 
and that many more statutes are on the horizon that will provide 
additional comfort to the industry.
c onsumer Affairs, Food and Public Distribution, and 
textiles, is one such important step as it rationalises 
criminal punishment for 183 minor offences across 
42 central Acts overseen by 19 ministries and 
departments. t he key objective of the Jv Act is to 
decriminalise and rationalise offences to enhance 
trust-based governance for ease of doing business 
and living. While doing so, it also helps to de-clog 
T
decrImINAlISATIoN  
INdIA’S coNTIN ued mArcH ToWArdS  
eASe of doIN g buSIN e SS
ajay Bahl
ajay ShriraM
the co-author is Chairman, Cii task force on Judicial reforms, and Co-founder & Managing Partner, AZB & Partners. 
email: ajay.bahl@azbpartners.com
the author is Chairman, Cii task force on ease of doing Business & Past President, Cii and Chairman & Senior Managing director, dCM 
Shriram Ltd. email: ajay.shriram@dcmshriram.com
Page 2


43 January 2024
he journey to Atmanirbhar Bharat (self-
r eliant india) is linked to india taking 
bold and confident steps towards 
enhancing the ease of Doing Business 
and ease of Living. the Jan vishwas (Amendment 
of Provisions) Act, 2023 (‘Jv Act’) spearheaded 
by DPiit, under the able leadership of shri Piyush 
goyal, union Minister of c ommerce and industry, 
The Jan Vishwas (Amendment of Provisions) Act, 2023 strives to 
strike a balance between the severity of the violation and the gravity 
of the prescribed punishment. Many offences, which are either minor 
or technical or procedural in nature and for which the punishment 
prescribed was disproportionate, have been decriminalised under 
the JV Act. The industry believes that the JV Act is only the beginning 
and that many more statutes are on the horizon that will provide 
additional comfort to the industry.
c onsumer Affairs, Food and Public Distribution, and 
textiles, is one such important step as it rationalises 
criminal punishment for 183 minor offences across 
42 central Acts overseen by 19 ministries and 
departments. t he key objective of the Jv Act is to 
decriminalise and rationalise offences to enhance 
trust-based governance for ease of doing business 
and living. While doing so, it also helps to de-clog 
T
decrImINAlISATIoN  
INdIA’S coNTIN ued mArcH ToWArdS  
eASe of doIN g buSIN e SS
ajay Bahl
ajay ShriraM
the co-author is Chairman, Cii task force on Judicial reforms, and Co-founder & Managing Partner, AZB & Partners. 
email: ajay.bahl@azbpartners.com
the author is Chairman, Cii task force on ease of doing Business & Past President, Cii and Chairman & Senior Managing director, dCM 
Shriram Ltd. email: ajay.shriram@dcmshriram.com
44 January 2024
the indian judicial system so that it can focus on 
more burning matters. 
some of the important rationalised Acts with 
great implications for ease of doing business in 
the country include the Pharmacy Act of 1948, the 
copyright Act of 1957, the Patents Act of 1970, 
the environment (Protection) Act of 1986, the 
Motor vehicles Act of 1988, the trade Marks Act of 
1999, the information technology Act of 2000, the 
Prevention of Money Laundering Act of 2002, the 
Food safety and standards Act of 2006, and the 
Legal Metrology Act of 2009.
t he Jv Act strives to strike a balance between 
the severity of the violation and the gravity of the 
prescribed punishment. Many offences, which 
are either minor or technical or procedural in 
nature and for which the punishment prescribed 
was disproportionate, have been decriminalised 
under the Jv Act. it completely decriminalises 
several specific offences by reducing punishment 
from ‘imprisonment’ and/or ‘fine’ , to only ‘penalty’ , 
which is minor, technical or procedural in nature. 
complete decriminalisation of many offences 
promises to save corporations from going through 
the rigours of a criminal trial before being convicted 
for an offence that is now punishable merely with 
a ‘penalty’, meaning that court prosecution is not 
required to administer punishments.
Decriminalisation of offences, like non-
production of documents or information under 
various laws, makes sense since the regulatory 
authorities have other mechanisms at their 
disposal (like search and seizure, obtaining 
information from other regulators or offices in view 
of increased synchronisation and synergies among 
various government departments or authorities) 
to collect documents or information in case of 
non-cooperation. similarly, decriminalisation of 
offences that were punishable under the residual 
category (for which no specific punishment was 
prescribed) is a move in the right direction.
cii (confederation of indian industry), whose 
numerous suggestions were considered favorably 
in the Jv Act, has always been a strong advocate 
of moving towards a system of self-governance 
where criminal provisions exist only as an 
exception for serious offences, whereas for minor 
violations, it recommended for the replacement of 
‘imprisonment’ and/or ‘fine’ with ‘penalty’ , which is 
an executive decision (rather of the court). 
the Jv Act has vastly worked on these 
aspects, encompassing a wide range of areas 
and offering huge potential to save businesses 
from the strenuous and time-consuming process 
of legal trials and the consequent build-up of 
case pendency with an already overburdened 
judiciary at the same time. For instance, the 
imprisonment term in the Legal Metrology Act 
for many of the repeat offences has now been 
replaced with increased fines, which used to 
contribute significantly to the pendency of cases 
year after year. 
t he industry believes that the Jv Act is only the 
beginning and that many more statutes are on the 
horizon that will provide 
additional comfort to the 
industry. the exercise 
should be expanded to 
include pending areas 
under central ministries 
[like the consumer 
Protection Act, 2019; 
Water (Prevention and 
control of Pollution) Act, 
1974; and other statutes] 
and state governments 
(like the Factories 
Act, 1948; inter state 
Migrant Workmen Act, 
1979; Maternity Benefit 
Act, 1961, etc.), just to 
Page 3


43 January 2024
he journey to Atmanirbhar Bharat (self-
r eliant india) is linked to india taking 
bold and confident steps towards 
enhancing the ease of Doing Business 
and ease of Living. the Jan vishwas (Amendment 
of Provisions) Act, 2023 (‘Jv Act’) spearheaded 
by DPiit, under the able leadership of shri Piyush 
goyal, union Minister of c ommerce and industry, 
The Jan Vishwas (Amendment of Provisions) Act, 2023 strives to 
strike a balance between the severity of the violation and the gravity 
of the prescribed punishment. Many offences, which are either minor 
or technical or procedural in nature and for which the punishment 
prescribed was disproportionate, have been decriminalised under 
the JV Act. The industry believes that the JV Act is only the beginning 
and that many more statutes are on the horizon that will provide 
additional comfort to the industry.
c onsumer Affairs, Food and Public Distribution, and 
textiles, is one such important step as it rationalises 
criminal punishment for 183 minor offences across 
42 central Acts overseen by 19 ministries and 
departments. t he key objective of the Jv Act is to 
decriminalise and rationalise offences to enhance 
trust-based governance for ease of doing business 
and living. While doing so, it also helps to de-clog 
T
decrImINAlISATIoN  
INdIA’S coNTIN ued mArcH ToWArdS  
eASe of doIN g buSIN e SS
ajay Bahl
ajay ShriraM
the co-author is Chairman, Cii task force on Judicial reforms, and Co-founder & Managing Partner, AZB & Partners. 
email: ajay.bahl@azbpartners.com
the author is Chairman, Cii task force on ease of doing Business & Past President, Cii and Chairman & Senior Managing director, dCM 
Shriram Ltd. email: ajay.shriram@dcmshriram.com
44 January 2024
the indian judicial system so that it can focus on 
more burning matters. 
some of the important rationalised Acts with 
great implications for ease of doing business in 
the country include the Pharmacy Act of 1948, the 
copyright Act of 1957, the Patents Act of 1970, 
the environment (Protection) Act of 1986, the 
Motor vehicles Act of 1988, the trade Marks Act of 
1999, the information technology Act of 2000, the 
Prevention of Money Laundering Act of 2002, the 
Food safety and standards Act of 2006, and the 
Legal Metrology Act of 2009.
t he Jv Act strives to strike a balance between 
the severity of the violation and the gravity of the 
prescribed punishment. Many offences, which 
are either minor or technical or procedural in 
nature and for which the punishment prescribed 
was disproportionate, have been decriminalised 
under the Jv Act. it completely decriminalises 
several specific offences by reducing punishment 
from ‘imprisonment’ and/or ‘fine’ , to only ‘penalty’ , 
which is minor, technical or procedural in nature. 
complete decriminalisation of many offences 
promises to save corporations from going through 
the rigours of a criminal trial before being convicted 
for an offence that is now punishable merely with 
a ‘penalty’, meaning that court prosecution is not 
required to administer punishments.
Decriminalisation of offences, like non-
production of documents or information under 
various laws, makes sense since the regulatory 
authorities have other mechanisms at their 
disposal (like search and seizure, obtaining 
information from other regulators or offices in view 
of increased synchronisation and synergies among 
various government departments or authorities) 
to collect documents or information in case of 
non-cooperation. similarly, decriminalisation of 
offences that were punishable under the residual 
category (for which no specific punishment was 
prescribed) is a move in the right direction.
cii (confederation of indian industry), whose 
numerous suggestions were considered favorably 
in the Jv Act, has always been a strong advocate 
of moving towards a system of self-governance 
where criminal provisions exist only as an 
exception for serious offences, whereas for minor 
violations, it recommended for the replacement of 
‘imprisonment’ and/or ‘fine’ with ‘penalty’ , which is 
an executive decision (rather of the court). 
the Jv Act has vastly worked on these 
aspects, encompassing a wide range of areas 
and offering huge potential to save businesses 
from the strenuous and time-consuming process 
of legal trials and the consequent build-up of 
case pendency with an already overburdened 
judiciary at the same time. For instance, the 
imprisonment term in the Legal Metrology Act 
for many of the repeat offences has now been 
replaced with increased fines, which used to 
contribute significantly to the pendency of cases 
year after year. 
t he industry believes that the Jv Act is only the 
beginning and that many more statutes are on the 
horizon that will provide 
additional comfort to the 
industry. the exercise 
should be expanded to 
include pending areas 
under central ministries 
[like the consumer 
Protection Act, 2019; 
Water (Prevention and 
control of Pollution) Act, 
1974; and other statutes] 
and state governments 
(like the Factories 
Act, 1948; inter state 
Migrant Workmen Act, 
1979; Maternity Benefit 
Act, 1961, etc.), just to 
45 January 2024
mention a few. it is encouraging to note that 
the government has already started working on 
identification of further areas and more provisions 
for rationalisation/decriminalisation of various 
business and commercial laws in consultation with 
key stakeholders, including cii.
As we look forward, this endeavour to free up 
judicial time and resources could be even better 
served if the benefit of the Jv Act is extended to 
existing offences as well. i n the past, the Hon’ble 
supreme c ourt has also taken the view in t. Barai 
v. Henry Ah Hoe that the benefit of reduced 
punishment for an offence should be extended to 
past contraventions, as it helps mitigate the rigour 
of law. the Joint committee on 
Jan vishwas (Amendment of 
Provisions) Bill, 2022 (‘Jv Bill’) 
in its report on the Jv Bill has 
also recommended looking 
into the legalities, possibilities, 
and other consequences of 
giving retrospective effect. We 
believe that while extending the 
provision retrospectively, the 
accused could possibly be given 
an option to choose whether he 
or she elects to continue with the 
current proceedings (and face 
potential criminal sanctions) or 
to opt for the advantage of the 
decriminalised provisions. this 
would have enormous potential, 
not only to further reduce the burden on businesses 
as well as the judiciary but also to increase the 
efficiency of government work as well as the focus 
on policymaking. 
in sum, the decriminalisation journey, which 
started with amendments to the companies Act, 
2013, has gained momentum with the Jv Act. it 
will be key to keep the momentum going, and for 
this, the principles contained in the Jv Act can be 
used as a guiding light to rationalise offences in 
other statutes that are yet to be decriminalised. cii 
believes that laws should enable and encourage 
entrepreneurship rather than act as deterrents 
and should continue to be decriminalised unless 
they include an element of fraud or wrongdoing. 
c riminal provisions in business laws for non-serious 
offences raise concerns amongst directors, young 
entrepreneurs, and domestic and foreign investors, 
impacting business sentiments and ease of doing 
business. 
However, a fine balance between ease of doing 
business and adequate deterrence for serious 
contraventions needs to be ensured so that 
responsible decriminalisation is achieved rather 
than blanket overhauls. it is encouraging to see 
that the government has started another stride 
in the direction of responsible decriminalisation. 
cii is fully committed to continuing to support 
the government in its endeavour to bring 
out ‘Jv 2.0’ for a sustained and accelerated  
improvement in the ease of doing business 
environment for the c ountry.                                     ?
Page 4


43 January 2024
he journey to Atmanirbhar Bharat (self-
r eliant india) is linked to india taking 
bold and confident steps towards 
enhancing the ease of Doing Business 
and ease of Living. the Jan vishwas (Amendment 
of Provisions) Act, 2023 (‘Jv Act’) spearheaded 
by DPiit, under the able leadership of shri Piyush 
goyal, union Minister of c ommerce and industry, 
The Jan Vishwas (Amendment of Provisions) Act, 2023 strives to 
strike a balance between the severity of the violation and the gravity 
of the prescribed punishment. Many offences, which are either minor 
or technical or procedural in nature and for which the punishment 
prescribed was disproportionate, have been decriminalised under 
the JV Act. The industry believes that the JV Act is only the beginning 
and that many more statutes are on the horizon that will provide 
additional comfort to the industry.
c onsumer Affairs, Food and Public Distribution, and 
textiles, is one such important step as it rationalises 
criminal punishment for 183 minor offences across 
42 central Acts overseen by 19 ministries and 
departments. t he key objective of the Jv Act is to 
decriminalise and rationalise offences to enhance 
trust-based governance for ease of doing business 
and living. While doing so, it also helps to de-clog 
T
decrImINAlISATIoN  
INdIA’S coNTIN ued mArcH ToWArdS  
eASe of doIN g buSIN e SS
ajay Bahl
ajay ShriraM
the co-author is Chairman, Cii task force on Judicial reforms, and Co-founder & Managing Partner, AZB & Partners. 
email: ajay.bahl@azbpartners.com
the author is Chairman, Cii task force on ease of doing Business & Past President, Cii and Chairman & Senior Managing director, dCM 
Shriram Ltd. email: ajay.shriram@dcmshriram.com
44 January 2024
the indian judicial system so that it can focus on 
more burning matters. 
some of the important rationalised Acts with 
great implications for ease of doing business in 
the country include the Pharmacy Act of 1948, the 
copyright Act of 1957, the Patents Act of 1970, 
the environment (Protection) Act of 1986, the 
Motor vehicles Act of 1988, the trade Marks Act of 
1999, the information technology Act of 2000, the 
Prevention of Money Laundering Act of 2002, the 
Food safety and standards Act of 2006, and the 
Legal Metrology Act of 2009.
t he Jv Act strives to strike a balance between 
the severity of the violation and the gravity of the 
prescribed punishment. Many offences, which 
are either minor or technical or procedural in 
nature and for which the punishment prescribed 
was disproportionate, have been decriminalised 
under the Jv Act. it completely decriminalises 
several specific offences by reducing punishment 
from ‘imprisonment’ and/or ‘fine’ , to only ‘penalty’ , 
which is minor, technical or procedural in nature. 
complete decriminalisation of many offences 
promises to save corporations from going through 
the rigours of a criminal trial before being convicted 
for an offence that is now punishable merely with 
a ‘penalty’, meaning that court prosecution is not 
required to administer punishments.
Decriminalisation of offences, like non-
production of documents or information under 
various laws, makes sense since the regulatory 
authorities have other mechanisms at their 
disposal (like search and seizure, obtaining 
information from other regulators or offices in view 
of increased synchronisation and synergies among 
various government departments or authorities) 
to collect documents or information in case of 
non-cooperation. similarly, decriminalisation of 
offences that were punishable under the residual 
category (for which no specific punishment was 
prescribed) is a move in the right direction.
cii (confederation of indian industry), whose 
numerous suggestions were considered favorably 
in the Jv Act, has always been a strong advocate 
of moving towards a system of self-governance 
where criminal provisions exist only as an 
exception for serious offences, whereas for minor 
violations, it recommended for the replacement of 
‘imprisonment’ and/or ‘fine’ with ‘penalty’ , which is 
an executive decision (rather of the court). 
the Jv Act has vastly worked on these 
aspects, encompassing a wide range of areas 
and offering huge potential to save businesses 
from the strenuous and time-consuming process 
of legal trials and the consequent build-up of 
case pendency with an already overburdened 
judiciary at the same time. For instance, the 
imprisonment term in the Legal Metrology Act 
for many of the repeat offences has now been 
replaced with increased fines, which used to 
contribute significantly to the pendency of cases 
year after year. 
t he industry believes that the Jv Act is only the 
beginning and that many more statutes are on the 
horizon that will provide 
additional comfort to the 
industry. the exercise 
should be expanded to 
include pending areas 
under central ministries 
[like the consumer 
Protection Act, 2019; 
Water (Prevention and 
control of Pollution) Act, 
1974; and other statutes] 
and state governments 
(like the Factories 
Act, 1948; inter state 
Migrant Workmen Act, 
1979; Maternity Benefit 
Act, 1961, etc.), just to 
45 January 2024
mention a few. it is encouraging to note that 
the government has already started working on 
identification of further areas and more provisions 
for rationalisation/decriminalisation of various 
business and commercial laws in consultation with 
key stakeholders, including cii.
As we look forward, this endeavour to free up 
judicial time and resources could be even better 
served if the benefit of the Jv Act is extended to 
existing offences as well. i n the past, the Hon’ble 
supreme c ourt has also taken the view in t. Barai 
v. Henry Ah Hoe that the benefit of reduced 
punishment for an offence should be extended to 
past contraventions, as it helps mitigate the rigour 
of law. the Joint committee on 
Jan vishwas (Amendment of 
Provisions) Bill, 2022 (‘Jv Bill’) 
in its report on the Jv Bill has 
also recommended looking 
into the legalities, possibilities, 
and other consequences of 
giving retrospective effect. We 
believe that while extending the 
provision retrospectively, the 
accused could possibly be given 
an option to choose whether he 
or she elects to continue with the 
current proceedings (and face 
potential criminal sanctions) or 
to opt for the advantage of the 
decriminalised provisions. this 
would have enormous potential, 
not only to further reduce the burden on businesses 
as well as the judiciary but also to increase the 
efficiency of government work as well as the focus 
on policymaking. 
in sum, the decriminalisation journey, which 
started with amendments to the companies Act, 
2013, has gained momentum with the Jv Act. it 
will be key to keep the momentum going, and for 
this, the principles contained in the Jv Act can be 
used as a guiding light to rationalise offences in 
other statutes that are yet to be decriminalised. cii 
believes that laws should enable and encourage 
entrepreneurship rather than act as deterrents 
and should continue to be decriminalised unless 
they include an element of fraud or wrongdoing. 
c riminal provisions in business laws for non-serious 
offences raise concerns amongst directors, young 
entrepreneurs, and domestic and foreign investors, 
impacting business sentiments and ease of doing 
business. 
However, a fine balance between ease of doing 
business and adequate deterrence for serious 
contraventions needs to be ensured so that 
responsible decriminalisation is achieved rather 
than blanket overhauls. it is encouraging to see 
that the government has started another stride 
in the direction of responsible decriminalisation. 
cii is fully committed to continuing to support 
the government in its endeavour to bring 
out ‘Jv 2.0’ for a sustained and accelerated  
improvement in the ease of doing business 
environment for the c ountry.                                     ?
49 January 2024
he Jan vishwas (Amendment of 
Provisions) Act, 2023, marks a significant 
milestone in india’s regulatory 
landscape. By decriminalising 183 
provisions across 42 Acts administered by 19 
ministries/departments, the Act strives to strike a 
delicate balance between regulatory enforcement 
and creating a favourable business environment. 
this ground-breaking move is poised to reshape 
the ease of Doing Business in india.
indian industry has long suggested the need 
for decriminalising various laws as it hampers the 
investment environment. Minor offences related 
to operations at the workplace had led to the 
filing of criminal cases against the directors of 
the companies, and in some cases, even against 
the independent directors too. this had vitiated 
the business environment and restrained many 
from harnessing their true potential. the recent 
decriminalisation drive by the indian government 
aims to streamline regulatory compliance by 
addressing minor procedural lapses. 
the Act is in the spirit of our Hon’ble Prime 
Minister’s beliefs and thoughts, which he shared 
One of the most noteworthy aspects of the Act is its substantial 
modification of penalties. In a bold departure from the conventional 
approach, the Act replaces imprisonment with a system of higher 
fines/penalties for various offences. This strategic shift aims to create 
a more effective deterrent against violations, ensuring a stronger 
enforcement mechanism without disrupting businesses.
way back in 2016: “ ..It was important to trust the 
citizens of India”. it is important that any regulation 
be trust-based, and there are heavy penalties for 
breaking that trust.
the Act simplifies the regulatory frameworks 
and reduces the burden on businesses, especially 
Micro, small and Medium enterprises (MsMes), 
which often face constraints in running day-to-day 
operations. t hey would be the primary beneficiaries 
of such changes, which would provide them with 
a more level playing field vis-à-vis their global 
counterparts.
one of the most noteworthy aspects of the Act 
is its substantial modification of penalties. i n a bold 
departure from the conventional approach, the 
Act replaces imprisonment with a system of higher 
fines/penalties for various offences. this strategic 
shift aims to create a more effective deterrent 
against violations, ensuring a stronger enforcement 
mechanism without disrupting businesses. By 
emphasising financial consequences over custodial 
sentences, the Act aligns with contemporary global 
trends in regulatory frameworks, emphasising 
the economic impact of non-compliance. this 
T
Sandip SoMany the author is Past President, fiCCi, Chairman, fiCCi taskforce on ease of doing Business; CMd, Somany impresa Group.
delIcATe bAl ANce 
regul ATory 
eN forcemeNT & 
fAVour Able buSIN e SS 
eNVIroN me NT
Page 5


43 January 2024
he journey to Atmanirbhar Bharat (self-
r eliant india) is linked to india taking 
bold and confident steps towards 
enhancing the ease of Doing Business 
and ease of Living. the Jan vishwas (Amendment 
of Provisions) Act, 2023 (‘Jv Act’) spearheaded 
by DPiit, under the able leadership of shri Piyush 
goyal, union Minister of c ommerce and industry, 
The Jan Vishwas (Amendment of Provisions) Act, 2023 strives to 
strike a balance between the severity of the violation and the gravity 
of the prescribed punishment. Many offences, which are either minor 
or technical or procedural in nature and for which the punishment 
prescribed was disproportionate, have been decriminalised under 
the JV Act. The industry believes that the JV Act is only the beginning 
and that many more statutes are on the horizon that will provide 
additional comfort to the industry.
c onsumer Affairs, Food and Public Distribution, and 
textiles, is one such important step as it rationalises 
criminal punishment for 183 minor offences across 
42 central Acts overseen by 19 ministries and 
departments. t he key objective of the Jv Act is to 
decriminalise and rationalise offences to enhance 
trust-based governance for ease of doing business 
and living. While doing so, it also helps to de-clog 
T
decrImINAlISATIoN  
INdIA’S coNTIN ued mArcH ToWArdS  
eASe of doIN g buSIN e SS
ajay Bahl
ajay ShriraM
the co-author is Chairman, Cii task force on Judicial reforms, and Co-founder & Managing Partner, AZB & Partners. 
email: ajay.bahl@azbpartners.com
the author is Chairman, Cii task force on ease of doing Business & Past President, Cii and Chairman & Senior Managing director, dCM 
Shriram Ltd. email: ajay.shriram@dcmshriram.com
44 January 2024
the indian judicial system so that it can focus on 
more burning matters. 
some of the important rationalised Acts with 
great implications for ease of doing business in 
the country include the Pharmacy Act of 1948, the 
copyright Act of 1957, the Patents Act of 1970, 
the environment (Protection) Act of 1986, the 
Motor vehicles Act of 1988, the trade Marks Act of 
1999, the information technology Act of 2000, the 
Prevention of Money Laundering Act of 2002, the 
Food safety and standards Act of 2006, and the 
Legal Metrology Act of 2009.
t he Jv Act strives to strike a balance between 
the severity of the violation and the gravity of the 
prescribed punishment. Many offences, which 
are either minor or technical or procedural in 
nature and for which the punishment prescribed 
was disproportionate, have been decriminalised 
under the Jv Act. it completely decriminalises 
several specific offences by reducing punishment 
from ‘imprisonment’ and/or ‘fine’ , to only ‘penalty’ , 
which is minor, technical or procedural in nature. 
complete decriminalisation of many offences 
promises to save corporations from going through 
the rigours of a criminal trial before being convicted 
for an offence that is now punishable merely with 
a ‘penalty’, meaning that court prosecution is not 
required to administer punishments.
Decriminalisation of offences, like non-
production of documents or information under 
various laws, makes sense since the regulatory 
authorities have other mechanisms at their 
disposal (like search and seizure, obtaining 
information from other regulators or offices in view 
of increased synchronisation and synergies among 
various government departments or authorities) 
to collect documents or information in case of 
non-cooperation. similarly, decriminalisation of 
offences that were punishable under the residual 
category (for which no specific punishment was 
prescribed) is a move in the right direction.
cii (confederation of indian industry), whose 
numerous suggestions were considered favorably 
in the Jv Act, has always been a strong advocate 
of moving towards a system of self-governance 
where criminal provisions exist only as an 
exception for serious offences, whereas for minor 
violations, it recommended for the replacement of 
‘imprisonment’ and/or ‘fine’ with ‘penalty’ , which is 
an executive decision (rather of the court). 
the Jv Act has vastly worked on these 
aspects, encompassing a wide range of areas 
and offering huge potential to save businesses 
from the strenuous and time-consuming process 
of legal trials and the consequent build-up of 
case pendency with an already overburdened 
judiciary at the same time. For instance, the 
imprisonment term in the Legal Metrology Act 
for many of the repeat offences has now been 
replaced with increased fines, which used to 
contribute significantly to the pendency of cases 
year after year. 
t he industry believes that the Jv Act is only the 
beginning and that many more statutes are on the 
horizon that will provide 
additional comfort to the 
industry. the exercise 
should be expanded to 
include pending areas 
under central ministries 
[like the consumer 
Protection Act, 2019; 
Water (Prevention and 
control of Pollution) Act, 
1974; and other statutes] 
and state governments 
(like the Factories 
Act, 1948; inter state 
Migrant Workmen Act, 
1979; Maternity Benefit 
Act, 1961, etc.), just to 
45 January 2024
mention a few. it is encouraging to note that 
the government has already started working on 
identification of further areas and more provisions 
for rationalisation/decriminalisation of various 
business and commercial laws in consultation with 
key stakeholders, including cii.
As we look forward, this endeavour to free up 
judicial time and resources could be even better 
served if the benefit of the Jv Act is extended to 
existing offences as well. i n the past, the Hon’ble 
supreme c ourt has also taken the view in t. Barai 
v. Henry Ah Hoe that the benefit of reduced 
punishment for an offence should be extended to 
past contraventions, as it helps mitigate the rigour 
of law. the Joint committee on 
Jan vishwas (Amendment of 
Provisions) Bill, 2022 (‘Jv Bill’) 
in its report on the Jv Bill has 
also recommended looking 
into the legalities, possibilities, 
and other consequences of 
giving retrospective effect. We 
believe that while extending the 
provision retrospectively, the 
accused could possibly be given 
an option to choose whether he 
or she elects to continue with the 
current proceedings (and face 
potential criminal sanctions) or 
to opt for the advantage of the 
decriminalised provisions. this 
would have enormous potential, 
not only to further reduce the burden on businesses 
as well as the judiciary but also to increase the 
efficiency of government work as well as the focus 
on policymaking. 
in sum, the decriminalisation journey, which 
started with amendments to the companies Act, 
2013, has gained momentum with the Jv Act. it 
will be key to keep the momentum going, and for 
this, the principles contained in the Jv Act can be 
used as a guiding light to rationalise offences in 
other statutes that are yet to be decriminalised. cii 
believes that laws should enable and encourage 
entrepreneurship rather than act as deterrents 
and should continue to be decriminalised unless 
they include an element of fraud or wrongdoing. 
c riminal provisions in business laws for non-serious 
offences raise concerns amongst directors, young 
entrepreneurs, and domestic and foreign investors, 
impacting business sentiments and ease of doing 
business. 
However, a fine balance between ease of doing 
business and adequate deterrence for serious 
contraventions needs to be ensured so that 
responsible decriminalisation is achieved rather 
than blanket overhauls. it is encouraging to see 
that the government has started another stride 
in the direction of responsible decriminalisation. 
cii is fully committed to continuing to support 
the government in its endeavour to bring 
out ‘Jv 2.0’ for a sustained and accelerated  
improvement in the ease of doing business 
environment for the c ountry.                                     ?
49 January 2024
he Jan vishwas (Amendment of 
Provisions) Act, 2023, marks a significant 
milestone in india’s regulatory 
landscape. By decriminalising 183 
provisions across 42 Acts administered by 19 
ministries/departments, the Act strives to strike a 
delicate balance between regulatory enforcement 
and creating a favourable business environment. 
this ground-breaking move is poised to reshape 
the ease of Doing Business in india.
indian industry has long suggested the need 
for decriminalising various laws as it hampers the 
investment environment. Minor offences related 
to operations at the workplace had led to the 
filing of criminal cases against the directors of 
the companies, and in some cases, even against 
the independent directors too. this had vitiated 
the business environment and restrained many 
from harnessing their true potential. the recent 
decriminalisation drive by the indian government 
aims to streamline regulatory compliance by 
addressing minor procedural lapses. 
the Act is in the spirit of our Hon’ble Prime 
Minister’s beliefs and thoughts, which he shared 
One of the most noteworthy aspects of the Act is its substantial 
modification of penalties. In a bold departure from the conventional 
approach, the Act replaces imprisonment with a system of higher 
fines/penalties for various offences. This strategic shift aims to create 
a more effective deterrent against violations, ensuring a stronger 
enforcement mechanism without disrupting businesses.
way back in 2016: “ ..It was important to trust the 
citizens of India”. it is important that any regulation 
be trust-based, and there are heavy penalties for 
breaking that trust.
the Act simplifies the regulatory frameworks 
and reduces the burden on businesses, especially 
Micro, small and Medium enterprises (MsMes), 
which often face constraints in running day-to-day 
operations. t hey would be the primary beneficiaries 
of such changes, which would provide them with 
a more level playing field vis-à-vis their global 
counterparts.
one of the most noteworthy aspects of the Act 
is its substantial modification of penalties. i n a bold 
departure from the conventional approach, the 
Act replaces imprisonment with a system of higher 
fines/penalties for various offences. this strategic 
shift aims to create a more effective deterrent 
against violations, ensuring a stronger enforcement 
mechanism without disrupting businesses. By 
emphasising financial consequences over custodial 
sentences, the Act aligns with contemporary global 
trends in regulatory frameworks, emphasising 
the economic impact of non-compliance. this 
T
Sandip SoMany the author is Past President, fiCCi, Chairman, fiCCi taskforce on ease of doing Business; CMd, Somany impresa Group.
delIcATe bAl ANce 
regul ATory 
eN forcemeNT & 
fAVour Able buSIN e SS 
eNVIroN me NT
50 January 2024
alignment with global trends is essential for india’s 
integration into the global business landscape, 
demonstrating the nation’s commitment to 
international standards and facilitating smoother 
trade relations.
Also, in most of these changes, while 
imprisonment has been removed, the fine has 
been retained. t he distinction between a fine and a 
penalty is that a fine is determined by a court and a 
penalty is levied by an executive authority. Hence, it 
was always argued that retention of the fine would 
not reduce the compliance burden and lessen 
the litigation, which would nullify the objective 
sought to be achieved through the Act. t herefore, 
wherever feasible, the removal of imprisonment 
may be accompanied by the levying of a penalty 
instead of a fine to avoid an increase in litigation. 
Ficci is happy to see that, in many cases, fines were 
replaced with penalties on the recommendation of 
the Joint Parliamentary c ommittee.
Ficci has formulated some basic general 
principles of decriminalisation while submitting 
suggestions and these are as follows:
 y Directors (or at least independent directors) 
not to be held liable for operational non-
compliances.
 y no criminal liability for technical errors/lapses 
only financial penalties
 y no criminal liability for first-time offences under 
the majority of laws
 y graded penalty system as 
a deterrent for subsequent non-
compliances
 y establishing mens rea for 
offences committed
i am happy to note that DPiit 
is in the process of identifying 
and assessing minor criminal 
provisions for decriminalisation 
under the next phase of the 
exercise, i.e., Jan vishwas 2.0. 
the Jan vishwas 2.0 exercise 
will further build upon the Jan 
vishwas Act, 2023 inculcating 
the learnings from its novel 
predecessor exercise. Ficci would 
like to add a few suggestions and 
recommendations for the same as below. 
Directors are still held responsible even for 
operational or procedural lapses under various 
laws, e.g., under the Factories Act, section 92, 
general penalties are prescribed for offences for the 
violation of provisions related to health & safety, 
working hours, welfare, compensation, and non-
maintenance of records, returns, and registers. Here 
also, it is suggested that:
 y For technical lapses/errors such as maintenance 
of records, filing of returns, etc.,  only monetary 
penalties are to be there, which could be graded 
for subsequent lapses.
 y First-time offences should only have monetary 
penalties, which could be enhanced further to 
create a deterrent effect. 
 y Provision for compounding an offence where 
otherwise there is compliance with the law.
 y criminal prosecution for minor offences leads 
to disruption in business operations as the 
focus shifts to defending prosecution. As per 
the provisions of section 252 of the code of 
criminal Procedure, 1973 (cPc ), if an accused 
pleads guilty (even for minor offences), the 
Magistrate may convict the accused, at his 
discretion, with imprisonment or with a fine. 
As the occurrence of violations, resulting in 
minor offences, is inevitable while carrying out 
operations in factories, instances of pleading 
guilty by the accused persons/company under