Jan Vishwas Bill: Towards trust-based governance

India’s journey toward regulatory reform and trust-based governance has taken another significant step forward with the introduction of the Jan Vishwas (Amendment of Provisions) Bill, 2025, in the Lok Sabha.

- Sanjeev Sanyal

The Jan Vishwas Act 2023 was India's first consolidated effort to decriminalise minor offences across multiple laws. The new bill builds on the 2023 Act to further India’s transition from a punitive regulatory framework to one focused on ease of doing business and ease of living. The Bill proposes to amend 355 provisions across 16 central Acts administered by 10 ministries and departments.

Some of these criminal provisions originate from the colonial period, but most are from the socialist era when there was a deep-seated suspicion of business. Consequently, small errors or procedural lapses could result in criminal prosecution. This resulted in an environment of mistrust and rent-seeking, which hindered economic growth.

The current system of over-criminalisation burdens the judiciary (already contending with over 50 million pending cases) and incentivises corrupt practices. It creates a fear-driven compliance culture and an unfriendly business environment, particularly for MSMEs. For instance, under the Central Silk Board Act, 1948, furnishing false statements (which could be a minor mistake) can still invite up to one year’s imprisonment. Similarly, the Apprentices Act, 1961, penalised overtime requests with fines, escalating to criminal records.

The Bill represents a shift in India’s regulatory enforcement philosophy, moving away from punitive criminal justice toward progressive administrative compliance. Under the existing framework, minor regulatory infractions across various sectors triggered criminal penalties, including imprisonment. This created a climate where technical lapses or inadvertent compliance failures could result in arrest, criminal records, and court proceedings. Business owners are under the constant threat of criminalisation, which, in most cases, were essentially administrative oversights rather than intentional wrongdoings.