What Happened
- The Jan Vishwas (Amendment of Provisions) Bill, 2026 was introduced in the Lok Sabha on March 27, 2026, by the Minister of State for Commerce and Industry, proposing amendments to 784 provisions across 79 Central Acts.
- Of the 784 provisions proposed for amendment, 717 relate to decriminalisation of minor, technical, or procedural offences — replacing imprisonment with monetary fines, compounding mechanisms, or administrative penalties — and 67 are aimed at improving ease of living.
- The Bill specifically targets export-related offences, proposing to reduce or eliminate criminal liability for procedural and documentation violations under trade and commerce laws, including offences under the Foreign Trade (Development and Regulation) Act and DGFT regulations.
- A key structural feature is the establishment of Adjudicating Officers to impose fines, ensuring penalties are proportionate to the offence; fines will automatically increase by 10% every three years to maintain deterrence.
- The Bill expands the "compounding" mechanism, allowing businesses to settle disputes by paying a fee rather than undergoing a full criminal trial — reducing court backlogs and business disruption.
Static Topic Bridges
Jan Vishwas Act, 2023 — The First Wave of Decriminalisation
The Jan Vishwas (Amendment of Provisions) Act, 2023 (No. 18 of 2023) was the first comprehensive decriminalisation law enacted by Parliament, receiving Presidential assent on August 11, 2023. It decriminalised 183 provisions across 42 Central Acts administered by 19 Ministries and Departments, covering agriculture, commerce, defence, economic affairs, information technology, environment, health, and transportation. The Act replaced imprisonment with fines or penalties for minor and technical violations, established adjudicating officers for faster disposal, and introduced compounding of offences in many areas. The Jan Vishwas Bill, 2026 is the second, far larger wave of this decriminalisation push — covering 784 provisions across 79 Acts.
- Jan Vishwas Act, 2023: 183 provisions in 42 Acts decriminalised; Presidential assent August 11, 2023
- Jan Vishwas Bill, 2026: 784 provisions across 79 Acts — 4x larger scope
- Policy basis: World Bank Ease of Doing Business indicators penalised India for criminalising minor regulatory violations
- Three decriminalisation methods: (a) Remove both imprisonment and fine; (b) Remove imprisonment, retain/enhance fine; (c) Convert imprisonment + fine to administrative penalty
- IP laws (trademarks, patents, designs) were decriminalised under the 2023 Act (effective August 1, 2024)
- Compounding: A mechanism allowing settlement of an offence by paying a prescribed fee — available for specified offences only
Connection to this news: The 2026 Bill is explicitly positioned as "Jan Vishwas 2.0" — continuing the reform trajectory of the 2023 Act with a much larger scope, extending decriminalisation deep into export regulations, trade laws, and business compliance norms.
Ease of Doing Business — India's Regulatory Reform Agenda
India's Ease of Doing Business (EoDB) reform journey accelerated after 2014, moving from rank 142 (2014) to 63 (2019) in the World Bank's Doing Business Index before the index was discontinued in 2021. A key barrier historically identified was the criminalisation of minor regulatory violations — creating disproportionate risk for businesses, particularly MSMEs and exporters. Decriminalisation reduces the "compliance cost of fear": even where prosecutions are rare, the threat of imprisonment deters investment, especially foreign direct investment. The Jan Vishwas Bills represent a structural shift in India's regulatory philosophy — from a command-and-control model (where all violations carry criminal penalties) to a proportional enforcement model (penalties match the severity of the offence).
- World Bank Doing Business Index discontinued in 2021 (data integrity concerns); replaced by Business Ready (B-READY) index
- India peaked at rank 63 in 2019 Doing Business rankings — up 79 places in 5 years
- DPIIT (Department for Promotion of Industry and Internal Trade) coordinates EoDB reform at national level
- State-level EoDB rankings also published by DPIIT — incentivises states to reform compliance regimes
- FDI in India: ~$70 billion/year (FY2024); decriminalisation of minor offences directly supports investor confidence
- MSME sector (employing ~11 crore workers) disproportionately affected by criminalised minor regulatory defaults
Connection to this news: The 2026 Bill is a direct instrument of EoDB reform — the decriminalisation of export offences is particularly significant for India's merchandise export targets (target: $2 trillion by 2030), as fear of criminal liability has historically deterred MSME exporters from regulatory risk-taking.
Compounding of Offences — Legal Concept and Significance
Compounding of offences is a legal mechanism by which a person who has committed a specified offence can settle the matter by paying a prescribed fee to the appropriate authority, without undergoing a criminal trial. In Indian law, compounding is provided for in statutes like the Companies Act, FEMA, Income Tax Act, and now increasingly in regulatory laws. It is distinct from a fine imposed after conviction — compounding is a pre-conviction settlement. The Jan Vishwas Bills significantly expand the range of offences eligible for compounding, allowing businesses to resolve regulatory violations quickly without court proceedings.
- Compounding is available only for specified offences listed in each statute — not all violations can be compounded
- FEMA, 1999: Section 15 allows compounding of forex violations before RBI or Enforcement Directorate
- Companies Act, 2013: Section 441 allows compounding of certain offences before NCLT/NCLAT or RD
- Compounding fee is typically proportional to the gravity of the violation
- Compounding ≠ acquittal — it is a settlement; the act or omission is acknowledged but criminal consequences are avoided
- The Jan Vishwas 2026 Bill creates new adjudicating officers (not courts) to handle compounding, reducing judicial burden
Connection to this news: Expanding compounding to cover export-related procedural violations will significantly reduce the fear factor for exporters — particularly for documentation errors in DGFT filings, shipping bill discrepancies, and Foreign Trade Policy compliance defaults that currently carry disproportionate criminal risk.
Key Facts & Data
- Bill introduced: March 27, 2026, in Lok Sabha
- Scope: 784 provisions across 79 Central Acts
- Decriminalisation target: 717 provisions (minor/technical/procedural offences)
- Ease of living provisions: 67 provisions
- Penalty escalation: Fines increase automatically by 10% every three years
- Jan Vishwas Act, 2023 (first wave): 183 provisions in 42 Acts; Presidential assent August 11, 2023
- Enforcement mechanism: Adjudicating Officers (not courts) for proportional penalty imposition
- Compounding: Expanded to allow pre-trial settlement for specified export and trade offences
- Policy objective: Ease of Doing Business — shift from criminal to civil/administrative enforcement for minor violations
- Relevant ministry: Ministry of Commerce and Industry (introduced by MoS Jitin Prasada)