The Jan Vishwas (Amendment of Provisions) Act, 2026 changes the legal landscape by replacing jail terms and steep fines for technical lapses & minor offences with lighter civil penalties. The shift away from excessive criminalisation will help create an enabling business environment, writes Mukesh Jagota
l What is the Jan Vishwas Act?
THE JAN VISHWAS (Amendment of Provisions) Act, 2026 enacted earlier this month is a central law that has amended certain existing laws to decriminalise and rationalise offences, enhancing trust-based governance for ease of living and doing business. The Act aims to foster a trust-based legal and compliance environment, where citizens and businesses are not subjected to criminal sanctions for minor non-compliance.
It has amended 784 provisions in 79 Central Acts—decriminalising 717 provisions to promote ease of doing business and amending 67 provisions to facilitate ease of living. The Act rationalised more than 1000 offences, removing outdated provisions to improve the overall regulatory environment. By reducing the burden of criminal liability and simplifying regulatory processes, it is expected to enhance compliance, promote investment, and strengthen economic growth.
l Laws amended by this new Act
AMONG THE ACTS amended are Reserve Bank of India Act, Life Insurance Corporation Act, Pension Fund Regulatory and Development Authority Act, Drugs and Cosmetic Act, Food Safety and Standards Act, Clinical Establishments Act, Motor Vehicles Act, New Delhi Municipal Council Act, Motor Vehicles Act and Indian Succession Act. The laws dealing with real estate, coal, mining, shipping, petroleum, power, railways, copyright and patents have also been amended through the Act.
l Likely impact of decriminalised offences
n Regulatory balance: The Act balances regulatory enforcement with a favourable business environment.
n Efficiency: Consolidated amendments save time and cost for the government and judicial system.
n Justice system: Administrative adjudication mechanisms reduce case pendency and improve justice dispensation.
n Investor confidence: Rationalising business regulations boosts investor confidence and supports MSMEs.
n Economic growth: Minimising compliances encourages economic growth, job creation, and transparency.
l How it builds on its 2023 namesake
THE ACT BUILDS on the Jan Vishwas (Amendment of Provisions) Act, 2023. That Act marked the first consolidated legislative effort to remove criminal consequences for minor and procedural violations across multiple laws. A total of 183 provisions in 42 Central Acts were decriminalised then. The Joint Parliamentary Committee then had recommended that such an exercise should be continued in future. The Department for Promotion of Industry and Internal Trade continued the process of further identifying minor criminal provisions to be compiled for another common amendment law that has now resulted in the 2026 Act.
l How were the laws to be amended chosen?
MANY INDIAN LEGISLATIONS have not been amended in the last 20-30 years. Some legislatures have not amended their penal provisions despite amending the Act. Decriminalisation aims for rational reviews of punishments. The assessment while doing this analysis is to ensure that the severity of the punishment is commensurate with the severity of the offence. Based on factors like severity of the offence, nature and type of offence, stakeholder feedback, industry consultation, and comparison with similar legislatures, the offences are graded based on severity. Based on the severity, multiple types of amendments were proposed by the administrative ministry.
l Shift to proportionate punishment
KEY MEASURES INCLUDE replacement of imprisonment provisions with monetary penalties or warnings, graded enforcement mechanisms, including warnings for first-time contraventions and rationalisation of fines and penalties in proportion to the nature of the offence. For time-bound enforcement, the Act provides for appointment of adjudicating officers and establishment of appellate authorities. These measures aim to facilitate speedy disposal of cases and reduce litigation burden on courts, while ensuring adherence to principles of natural justice.
l How were offences graded?
ONE OPTION WAS omission of any offence which is insignificant or redundant as per the assessment. The other was to replace imprisonment and fine with a civil penalty for the offences which were deemed to be appropriate to be adjudicated through quasi-judicial proceeding. This step helps re-route these cases from the overburdened courts. In some instances, the criminal punishment is reduced in severity; for instance, imprisonment is removed and fine is retained. These are the cases where the administrative ministry deems the criminal punishment as essential for enforcement or deterrence given the subjective nature of the offence. The administrative ministry finally decided based on all factors including enforcement, deterrence and stakeholder feedback.