To enhance the ease of doing business, over 39,000 compliances have been reduced, and over 3,400 legal provisions with criminal implications have been diluted, Finance Minister Nirmala Sitharaman said in the Union Budget 2023 tabled on February 1.

Sitharaman’s announcement is in line with the Jan Vishwas Bill to be tabled in the Lok Sabha in December 2022. The bill is currently before a Parliamentary Joint Committee for consideration.

Jan Vishwas Bill amended 42 Acts to reduce compliance for businesses and ensure ease of doing business. Acts such as the Indian Post Office Act 1898, the Environment (Protection) Act 1986, the Public Liability Insurance Act 1991, and the Information Technology Act 2000 have all been amended.

Many offences, some of which lead to imprisonment, have been decriminalised and replaced by fines. For instance, under the Agricultural Products (Grading and Marking) Act, 1937, forgery of grade designation marks is punishable by up to three years in jail and a fine of up to Rs 5,000. The bill intends to replace it with a fine of Rs 8 lakh.

According to the Economic Survey 2022-23, the decriminalisation of minor economic offences under the Companies Act 2013 resulted in 400,000 companies correcting past breaches to avoid penalties. In addition, more than 1,400 default cases have yet to be decided by the courts after the reform.