This Article pertaining to THE JAN VISHWAS ACT, 2023: A STEP TOWARDS DECRIMINALIZATION AND REGULATORY REFORM is Authored by Advocate Snigdha Ranjan. She is an Advocate who is currently working at SYSLEX Law Firm, Hyderabad.
Over the last few years, India has been progressively pursuing decriminalization efforts to reduce unnecessary criminal liabilities while also enhancing regulatory compliance frameworks. India’s shift from criminal prosecution to civil sanctions in case of regulatory infractions mirrors international best practices. Some notable precedents include amendments to the Companies Act, 2013, the partial decriminalization of cheque bounce offenses under Section 138 of the Negotiable Instruments Act, 1881, and procedural amendments under the Insolvency and Bankruptcy Code (IBC), 2016. Another step taken in this direction is the enactment of the Jan Vishwas Act, 2023. This Act has been introduced with the objective to further this trajectory of reformation undertaken by the Government by putting an end to incarceration for minor statutory violations and substituting it with civil penalties and adjudicatory mechanisms.
The Jan Vishwas (Amendment of Provisions) Act, 2023, enacted on August 11, 2023, marks a significant change in India’s legal landscape by decriminalizing minor offenses across various statutes. It amends 183 provisions in 42 statutes, and criminal penalties have been substituted with civil penalties and administrative sanctions, changing from the common punitive approach. This step not only mitigates judicial backlog, reinforces civil and administrative penalties, promotes ease of doing business, but also aligns India’s legal framework with international best practices. The proposed Jan Vishwas Bill 2.0 is expected to extend and consolidate these reforms further.
The Act removes provisions with imprisonment from several legislative frameworks governing commercial, environmental, financial, consumer protection domains amongst many. The focus is shifted from punitive approach to a compliance-driven regulatory mechanism. Some notable statutes affected by this Act where “punishable with imprisonment for a term…” are replaced with the words “liable to penalty…” are:
- The Agricultural Produce (Grading and Marking) Act, 1937: Certain offences related to grading and marking of agricultural produce are decriminalised.
- The Drugs and Cosmetics Act, 1940: In the case of subsequent offences, imprisonment is replaced with penalty.
- The Pharmacy Act, 1948: Offences relating to obstructing an inspector, claiming falsely to be registered, dispensing without being registered.
- The Cinematograph Act, 1952: Certain violations regarding film certification are decriminalised, replacing imprisonment with penalties.
- The Patents Act, 1970: Certain offences such as refusal / failure to provide information and others imprisonment is replaced with penalty.
- The Trade Marks Act, 1999: In cases wherein trademark is falsely represented as registered.
- The Information Technology Act, 2000: Certain offences by Certifying authorities, controllers, or for breach of confidentiality and privacy, earlier, they would be imprisoned. However, now it is decriminalised and they will be liable to penalty.
- The Food Safety and Standards Act, 2006: Earlier the punishment for unsafe food, false information, carrying out a business without license was imprisonment. Now, it is replaced with a penalty.
- The Government Securities Act, 2006: In some minor contraventions, the words “punishable with imprisonment” are replaced with the words “liable to penalty…”.
- The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016: In cases of non-compliance with intimation requirements.
By shifting minor offences to civil enforcement, the Act reduces the burden on the judicial system like docket explosion and allows judicial resources to be focused on serious offences rather than minor infractions. Further, the decriminalisation prevents undue criminal prosecution of individuals and industries over minor technical lapses, and avoids unnecessary stigmatisation. The clogging of jails with undertrials is also reduced to a great extent. The path laid down in the present Bill points out clearly that the government has finally accepted the dictum of Bail is the Rule and jail is the exception and veers away from the path of imprisoning individuals for minor infractions. Although the Hon’ble Supreme Court has suggested to the Government to pass an enactment governing bails, the Government of the day has desisted from the same and has come up with decriminalising minor infractions, by way of imposing penalties instead of imprisonment.
The clarity of civil penalties promotes legal certainty and encourages voluntary compliances. However, the absence of criminal deterrence may incentivise non-compliance, as certain individuals / industries may defy regulatory compliances by paying the civil penalties; and this laxity might weaken the enforcement in areas like consumer safety, environmental protection, and labour laws. Effective grievance redressal mechanism must also be put in place.
Surprisingly, the Jan Vishwas Act, 2023 has not received the attention it deserves. In the euphoria surrounding the Finance Bill, this crucial piece of legislation and the announcement regarding the introduction of Jan Vishwas Bill 2.0 has been largely overlooked in public discourse and media coverage. The lack of awareness about its implications could hinder the full realization of its intended benefits, making it imperative for policymakers, legal experts, and stakeholders to actively engage in discussions around it.
Building up on this Act, the forthcoming Jan Vishwas Bill 2.0 is anticipated to introduce further legislative refinements, including expanded decriminalisation of economic offences, revisions to labour laws to reduce criminal sanctions, increased reliance on civil and administrative enforcement methods. The Jan Vishwas Act, 2023 is a progressive step, however, strong regulatory compliance, continuous evaluation of the policy is paramount to ensure that the said decriminalisation does not lead to debilitated enforcement and increased corporate negligence. The same must be kept in mind for the upcoming Jan Vishwas Bill 2.0, ensuring that the reforms remain balanced, effective, and are in alignment with the country’s socio-economic objectives.
