21st August 2025 — SB LEGAL INSIGHTS
The Government has recently introduced the Jan Vishwas (Amendment of Provisions) Bill, 2025 in the Lok Sabha to promote ease of doing business. The Bill amends 355 provisions across 16 Central Acts to simplify compliance.
Decriminalization Focus
Imprisonment for minor or procedural defaults has been replaced with monetary penalties, warnings, or improvement notices.
First-time offences under 10 Acts may attract only advisory or warning instead of a fine or imprisonment.
Penalty Framework
- Penalties made proportionate and increase with repeated offences.
- Automatic 10% escalation in penalties every 3 years.
- Shift towards administrative adjudication rather than court trials.
Acts Impacting Corporates
Key amendments include:
- Legal Metrology Act, 2009: Mis-declaration of weights/measures or packaging defaults now attract civil penalties; first offence may result in a warning.
- Drugs and Cosmetics Act, 1940: Penalty for manufacture and sale of Ayurvedic, Siddha or Unani drugs changed to fine (imprisonment removed).
- Reserve Bank of India Act, 1934: NBFC non-submission of documents — penalty instead of imprisonment.
- Electricity Act, 2003: Licensing/reporting lapses met with fines, not imprisonment.
- Motor Vehicles Act, 1988: Document-related violations met with warning or penalty.
- Patents Act, 1970; Boilers Act, 1923; Merchant Shipping Act, 1958; Cinematograph Act, 1952: Procedural offences now converted into penalties.
Implications for Corporates
- Reduced Criminal Liability: Directors and officers face less exposure to criminal prosecution for procedural lapses.
- Ease of Compliance: A warning-first system provides relief for minor or first-time defaults.
- Retail & Manufacturing Relief: Particularly beneficial under Legal Metrology and Drugs & Cosmetics Acts for packaging and labelling compliances.
- Business Continuity: Procedural defaults less likely to escalate into criminal proceedings.
Conclusion
The Jan Vishwas Bill, 2025 is a major step in decriminalizing business laws and creating a more compliance-friendly environment. However, the Bill still needs to complete the legislative process and subsequently be notified by the Government before it becomes enforceable. Corporates should meanwhile review internal compliance processes — criminal provisions in the amended Acts remain effective until official notification.
A copy of the Bill text is referenced in the original document.