JAN VISHWAS (AMENDMENT OF PROVISIONS) ACT, 2023

The Jan Vishwas (Amendment of Provisions) Act, 2023, came into effect in August 2023. It decriminalizes 183 provisions across 42 Central Acts, replacing jail terms with monetary penalties for minor violations.

  • Aims to improve ease of doing business, ease of living, and promote a trust-based regulatory framework.

Jan Vishwas (Amendment of Provisions) Act, 2023:

  • A major legislative reform covering laws under 19 Ministries including Environment, Agriculture, and Corporate Affairs.
  • Example: Procedural lapses under Environment Protection Act, 1986 now attract fines, not imprisonment.
  • Objectives:
    • Shift from punitive to reformative
    • Reduce legal fear and harassment for minor infractions.
    • Support MSMEs and informal sector compliance.
  • Need for Reform:
    • Many outdated laws imposed disproportionate penalties.
    • Uniform frameworks burdened small businesses, discouraging formalization.
    • Needed to replace colonial-era fear-driven laws with trust-based systems.
  • Future Steps:
    • Jan Vishwas Bill 2.0 (proposed in Budget 2025–26) will decriminalize 100+ more provisions.
    • Urges states and municipalities to adopt similar reforms.

Trust-Based Regulatory Approach:

  • Government assumes citizens and businesses act in good faith, rather than treating them as violators.
  • Approach:
    • From policing to partnership; encourage voluntary compliance.
    • Retains strict penalties for serious offenses (e.g., fraud).
  • Key Features:
    • Decriminalization of minor offenses.
    • Risk-based enforcement for serious breaches.
    • Simplified compliance
    • Self-declaration models and reduced inspections.
    • Minimized government interference to curb corruption.

India’s Need of a Trust-Based Regulatory Approach:

  • Legacy Burden: Colonial laws like the Indian Forest Act, 1927 criminalized minor procedural violations.
  • Ease of Doing Business:
    • 75% of MSMEs struggle with compliance.
    • Simplified regulations help reduce entry barriers and improve formalization.
  • Judicial Decongestion:
    • Over 5 crore pending cases—many for minor violations.
    • Civil penalties and alternative dispute mechanisms can reduce load.
  • Curbing Corruption:
    • Reduces rent-seeking by removing jail threats for technical lapses.
    • Redundant approvals and data duplication can be eliminated.
  • Economic Growth:
    • Reduces fear of expansion among MSMEs.
    • States like Kerala, Haryana, and MP have shown early success in regulatory easing.
  • Aligned with Viksit Bharat 2047:
    • Supports the vision of “Minimum Government, Maximum Governance”.
    • Encourages innovation, private investment, and citizen empowerment.

Challenges in Adopting Trust-Based Regulation

  • Colonial Bureaucratic Mindset: Excessive oversight and control still dominate institutional behaviour.
  • Regulatory Overlap: India has 1,536 laws and 69,000+ compliances; many are contradictory or redundant.
  • Resistance at State/Local Levels:
    • State laws still contain 80% of criminal provisions.
    • Local governments lack autonomy and often favour penal audits.
  • No Standard Trust Metrics:
    • Trust and compliance aren’t measured systematically.
    • Digital tools like e-Bill systems face implementation gaps.

Way Forward: Strengthening Trust-Based Regulation

  • Unified Business Identity:
    • Adopt ‘One Nation, One Business ID’ for seamless compliance and service delivery.
    • Leverage platforms like DigiLocker for quicker approvals.
  • Harmonization of Laws:
    • Launch Deregulation Commission to align Central and State laws.
    • Focus on MSMEs, labour, and environmental laws.
  • Risk-Based Enforcement:
    • Institutionalize Regulatory Impact Assessment (RIA).
    • Use AI tools for targeted inspections, not blanket surveillance.
  • Digital Transparency & Anti-Corruption:
    • Expand use of MCA21, blockchain authentication, and real-time dashboards.
    • Protect whistleblowers and reduce discretionary power of officials.
  • Trust Metrics & Feedback Mechanisms:
    • Develop indicators like compliance ease score, public grievance redress dashboards.
    • Encourage regular industry-regulator dialogues.

The Jan Vishwas Act, 2023 marks a paradigm shift in Indian governance—from criminalization to cooperation. To sustain momentum, India must streamline legal frameworks, empower states, adopt digital-first governance, and institutionalize trust. A robust trust-based ecosystem is essential for Viksit Bharat @2047, fostering innovation, compliance, and inclusive growth.

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