PAC Watch

Jan Vishwas (Amendment of Provisions) Bill, 2026

The Bill is rooted in the broader vision of promoting Ease of Doing Business and Ease of Living, while fostering a governance system based on trust rather than excessive penalisation.

One of the most notable aspects of the Bill is its wide scope—it seeks to amend 784 provisions across 79 Central Acts administered by 23 Ministries. Out of these, 717 provisions are proposed to be decriminalised, replacing criminal penalties with civil ones, while 67 provisions are being rationalised to improve citizens’ day-to-day interactions with regulatory systems. These changes are expected to particularly benefit individuals, small businesses, and MSMEs by reducing compliance burdens and creating a more predictable legal environment.

2. Origin and Intent

The intent behind the Bill reflects a shift in governance philosophy—from suspicion-driven regulation to trust-based administration. Union Commerce and Industry Minister Piyush Goyal emphasised that the government seeks to reduce unnecessary legal friction that often arises from minor procedural lapses. According to him, many existing provisions—some dating back to colonial times—were designed with a punitive mindset, which no longer aligns with modern economic and social realities.

The Bill aims to eliminate the fear of criminal prosecution for minor, technical defaults and instead promote voluntary compliance. It also acknowledges that most individuals and businesses do not intentionally violate laws, and therefore, minor infractions should not lead to severe consequences such as imprisonment.

To ensure effective implementation, the Bill introduces institutional mechanisms such as the appointment of Adjudicating Officers and the establishment of Appellate Authorities. These measures are designed to provide faster resolution of disputes and reduce reliance on traditional court systems, thereby making justice delivery more accessible and efficient.

3. Key Amendments and Policy Changes

A central feature of the Bill is the decriminalisation of several offences, replacing imprisonment provisions with monetary penalties or administrative actions. This represents a major shift towards proportionate regulation.

For example, under the Drugs and Cosmetics Act, 1940, certain violations related to the manufacture or sale of cosmetics previously attracted imprisonment of up to one year along with fines. The Bill proposes to replace this with a civil penalty of up to ₹1 lakh or three times the value of the confiscated goods, whichever is higher.

Similarly, under the National Highways Act, 1956, actions that render highways unsafe or impassable could lead to imprisonment of up to five years. The amendment replaces this with graded financial penalties ranging from ₹10 lakh to ₹1 crore, depending on the severity of the violation.

Another important aspect is the introduction of a graded enforcement framework, where first-time or minor violations may attract warnings instead of immediate penalties. This approach allows individuals and businesses the opportunity to correct their mistakes without facing disproportionate consequences.

4. Impact

The Bill is expected to have far-reaching implications for India’s regulatory and business environment. By shifting from criminal penalties to civil enforcement mechanisms, it reduces the risk and anxiety associated with compliance, particularly for small businesses and entrepreneurs.

The introduction of adjudicating authorities and appellate mechanisms will likely lead to faster dispute resolution, thereby reducing the burden on courts and improving overall efficiency in the legal system. Additionally, the rationalisation of penalties ensures that punishments are proportionate to the nature and severity of the offence.

The Bill also includes amendments to laws such as the New Delhi Municipal Council Act, 1994 and the Motor Vehicles Act, 1988, which directly affect everyday life. These changes aim to simplify procedures related to municipal governance, taxation, and vehicle compliance, thereby enhancing citizen convenience.

Overall, the reforms are expected to create a more business-friendly ecosystem, encourage investment, and promote a culture of trust-based compliance.

5. Conclusion

The Jan Vishwas (Amendment of Provisions) Bill, 2026 represents a transformative step in modernising India’s legal and regulatory architecture. By emphasising proportionality, efficiency, and trust, the Bill aligns India’s governance practices with global standards.

Importantly, the Bill is the result of a comprehensive consultative process, involving inter-ministerial discussions, inputs from NITI Aayog, industry stakeholders, and civil society organisations. This collaborative approach enhances the credibility and practicality of the proposed reforms.

In essence, the Bill moves India closer to a system where compliance is encouraged through facilitation rather than fear—paving the way for a more transparent, efficient, and citizen-friendly regulatory environment

Source


1) The Economic Times
https://economictimes.indiatimes.com/news/economy/policy/lok-sabha-passes-jan-vishwas-amendment-bill/articleshow/129954023.cms

2) The Hindu Business Line
https://www.thehindubusinessline.com/news/lok-sabha-passes-jan-vishwas-amendment-bill/article70814212.ece