Government Withdraws Jan Vishwas Amendment Bill 2025 For Revision: Key Highlights
Business
The Union Government has withdrawn the proposed Jan Vishwas (Amendment of Provisions) Bill, 2025 from the Lok Sabha in order to incorporate recommendations made by a Select Committee, which suggested several amendments to strengthen trust-based governance further and improve the ease of doing business.
Union Commerce and Industry Minister Piyush Goyal moved the motion to withdraw the Bill, which is a continuation of the regulatory reforms initiated under the Jan Vishwas (Amendment of Provisions) Act, 2023. The withdrawal comes during the second phase of the Union Budget 2026-27 session of Parliament.
The Jan Vishwas (Amendment of Provisions) Bill sought to amend multiple laws to decriminalise minor offences and rationalise penalties. It proposed replacing imprisonment in certain cases with monetary penalties, thereby reducing the burden on the judicial system and making compliance easier for businesses. It aims to promote a governance framework built on trust rather than strict punitive enforcement.
According to the Statement of Objects and Reasons, the initiative emphasises resolving a large number of cases through compounding, adjudication, and administrative mechanisms instead of litigation. This approach would allow individuals to correct minor violations, often committed unintentionally, while saving time, effort, and resources.
The statement also highlighted that effective democratic governance is rooted in trust between the government, its people, and institutions. It noted that outdated rules and regulations often create a trust deficit, and reiterated the government’s commitment to the principle of “Minimum Government, Maximum Governance.” The Bill was positioned as part of broader reforms aimed at enhancing both ease of living and ease of doing business.
Key Highlights Of The Jan Vishwas (Amendment of Provisions) Bill, 2025 –
•The Bill proposes amendments to 17 laws, aiming to decriminalise various offences across sectors such as municipal governance, motor vehicle regulations, commodity boards, apprenticeships, and exports. For instance, under the Electricity Act, 2003, non-compliance currently attracts imprisonment of up to three months, a fine, or both. The Bill proposes removing imprisonment and retaining only a monetary penalty.
•It converts several fines into civil penalties and empowers Adjudicating Officers to impose them. For example, under the Motor Vehicles Act, 1988, driving while mentally or physically unfit currently attracts a fine; the Bill reframes this as a civil penalty.
•The Bill proposes a 10% increase in fines and penalties across the 17 Acts every three years. However, if an existing law already provides a mechanism for revision, that method will continue to apply.
•It revises the property tax framework under the New Delhi Municipal Council Act, 1994, specifying that property tax will include both a building tax and a vacant land tax.
•The Bill introduces the concept of “improvement notices” under the Legal Metrology Act, 2009. These notices would allow individuals or entities to rectify non-compliance within a stipulated timeframe. However, repeat violations will attract monetary penalties.
