The Jan Vishwas (Amendment of Provisions) Bill 2023

What’s in today’s article?

• Why in News?
• About the Jan Vishwas (Amendment of Provisions) Bill 2023
• What does the Bill Propose?
• Some Key Laws in the Draft Legislation
• What is the Need for such a Law?
• Significance of the Bill
• Are there any Concerns?

 

Why in News?

• Among the Bills set to be taken up during the Monsoon Session of the Parliament, is the Jan Vishwas (Amendment of Provisions) Bill 2023.

 

About the Jan Vishwas (Amendment of Provisions) Bill 2023:

• It seeks to redefine the regulatory landscape of the country with decriminalisation of minor offences under 42 Acts to reduce compliance burden and promote ease of living and doing business in the country.
• It was tabled in Parliament by the Union Ministry of Commerce and Industry last year and later referred to a Joint Parliamentary Committee (JPC) for review.
• The JPC presented its report with recommendations to Parliament during the Budget Session.
• As per reports, most recommendations of the JPC have been approved by the Union Cabinet, clearing the way for its passing.

 

What does the Bill Propose?

• Decriminalising of 180 offences across 42 laws governing environment, agriculture, media, industry and trade, publication, etc.
• It seeks to completely remove or replace imprisonment clauses with monetary fines, to provide a boost to the business ecosystem and improve the well-being of the public.
• The Bill also proposes compounding of offences in some provisions.
• The Bill removes all offences and penalties under the Indian Post Office Act, 1898.
• Changes in grievance redressal mechanisms and the appointment of one or more Adjudicating Officers for determining penalties.
• A periodic revision of fines and penalties (an increase of 10% of the minimum amount every 3 years) for various offences in the specified Acts.

 

Some Key Laws in the Draft Legislation:

• The Indian Forest Act, 1927
• The Air (Prevention and Control of Pollution) Act, 1981 
• The Information Technology Act, 2000
• The Environment (Protection) Act, 1986
• The Copyright Act, 1957
• The Motor Vehicles Act, 1988
• The Railways Act, 1989
• The Cinematograph Act, 1952
• The Agricultural Produce (Grading & Marking) Act, 1937
• The Food Safety and Standards Act, 2006
• The High Denomination Bank Notes (Demonetisation) Act, 1978, etc.

 

What is the Need for such a Law?

• MSMEs are the backbone of the Indian economy and contribute significantly to the GDP.
• For these enterprises to make a shift to the formal sector and generate jobs and income, there must be effective and efficient business regulations in place that eliminate unnecessary red tape.
• Currently, there are 1,536 laws which translate into around 70,000 compliances that govern doing business in India.
• A 2022 report by the ORF on imprisonment clauses in business laws revealed that among the 69,233 unique compliances that regulate business in India, 26,134 have imprisonment clauses as a penalty for non-compliance.
• These excessive compliances have proved onerous for business enterprises, especially MSMEs, creating barriers to the smooth flow of ideas and the creation of jobs, wealth and GDP.
• Moreover, the lengthy processing times for the needed approvals can escalate costs and dampen the entrepreneurial spirit. 

 

Significance of the Bill:

• Reducing compliance burden gives impetus to business process reengineering and improves ease of living of people.
• It would accelerate investment decisions due to smoother processes and attracting more investment.
• The Bill is also aimed at reducing judicial burden. As per the National Judicial Data Grid, out of a total of 4.4 crore pending cases, 3.3 crore cases are criminal proceedings.
  • Settlement of a large number of issues, by compounding method, adjudication and administrative mechanism, without involving courts, will save time, energy and resources.
• To summarise, the Bill seeks to bolster ‘trust-based governance’.

 

Are there any Concerns?

• The monetary fines or penalties are not a good enough attempt at ‘decriminalisation’. Hence, the Bill undertakes ‘quasi-decriminalisation.’
• The blanket removal of imprisonment provision might also remove the deterrence effect of the environmental legislation, especially for large corporations profiteering from the offence.
• Adjudicating Officers may lack the technical competence necessary to decide all penalties under the Air (Prevention and Control of Pollution) Act, 1981 and the Environment (Protection) Act 1986.
• Many offences proposed to be removed in the Bill have nothing to do with its objective of decriminalisation to promote ease of doing business - like theft or misappropriation of postal articles.

 

 

 

 

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Q) Why was the High Denomination Bank Notes (Demonetisation) Act 1978 enacted?

The High Denomination Bank Notes (Demonetisation) Act, 1978, of India is a law passed in the Indian Parliament, ceasing the usage of high-denomination bank notes of ₹1000, ₹5000, and ₹10000.

 

Q) What are the efforts taken by India to promote ease of doing business in the MSME sector?

The Ministry of MSME has undertaken various steps towards improving the ease of doing business that include introduction of Online Registration – Udyam Registration, launch of MSME Sambandh Portal to monitor the progress of procurement by the CPSEs from MSEs, etc

 

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Source:Explained | The Jan Vishwas (Amendment of Provisions) Bill, 2023