New Delhi, Apr 9 (KNN) With Parliament passing the Jan Vishwas (Amendment of Provisions) Bill, 2026 to decriminalise minor offences and promote a more facilitative regulatory environment, compliance burden is set to ease significantly for trade and businesses especially micro, small and medium enterprises (MSMEs).
Building on earlier reforms, the proposed Jan Vishwas (Amendment of Provisions) Act, 2023, the Bill seeks to replace criminal penalties for procedural and minor violations with civil penalties and administrative mechanisms, allowing businesses to correct errors without facing immediate punitive action.
As both Lok Sabha and Rajya Sabha have cleared the Jan Vishwas (Amendment of Provisions) Bill, 2026 it is now headed for final stamp of approval by the President.
Focus on Proportionate Compliance
A key feature of the proposed amendments is the introduction of ‘improvement notices’ and warning mechanisms across multiple laws, providing businesses, especially MSMEs, an opportunity to rectify lapses before penalties are imposed.
Under the Legal Metrology Act, 2009, failure to maintain or produce required records will no longer attract immediate penalties. Instead, MSME importers will first receive an improvement notice to address compliance gaps.
Similarly, under the Private Security Agencies Act, 2005, the provision imposing fines of up to Rs 25,000 for not displaying licences at business premises has been removed, recognising such lapses as procedural rather than criminal in nature.
In the case of the Delivery of Books and Newspapers (Public Libraries) Act, the amendment introduces a warning system for publishers who fail to deposit copies, offering relief to smaller publishing entities from disproportionate penalties.
Reforms in Mining Sector
Significant changes have also been proposed under the Mines and Minerals (Development and Regulation) Act, 1957. Earlier provisions allowed for imprisonment of up to two years for contraventions of rules.
The amendment replaces criminal punishment with a monetary penalty of up to Rs 50 lakh, ensuring that violations are addressed through financial consequences rather than prosecution, particularly benefiting small mining and mineral-based enterprises.
Boost to Ease of Doing Business
The proposed reforms aim to simplify compliance, reduce regulatory uncertainty, and encourage voluntary adherence to rules. By differentiating between serious violations and minor procedural lapses, the Bill seeks to create a more balanced enforcement framework.
The move aligns with the government’s broader effort to improve ease of doing business, while ensuring that stringent action continues against willful and serious non-compliance.
The Jan Vishwas 2.0 reforms are expected to further strengthen the trust-based regulatory approach, providing MSMEs with a more enabling and less punitive operating environment.
(KNN Bureau)
