Jan Vishwas 2.0 Is All About Trust-Based Compliance

The passage of the Jan Vishwas (Amendment of Provisions) Bill, 2026 by Parliament reflects a conscious and forward-looking policy choice by the Government of India to recalibrate the balance between enforcement and facilitation, and to embed trust as a central pillar of the regulatory framework. The reform signals a clear departure from over-reliance on criminal sanctions toward a more proportionate, predictable, and facilitative approach to compliance.

In recent years, the decriminalisation of minor business-related offences has emerged as a core element of India’s reform agenda. The underlying objective has been consistent: to rationalise compliance requirements, enhance ease of doing business and foster a regulatory culture that promotes voluntary compliance rather than fear-driven adherence. Excessive criminalisation of technical and procedural lapses had created compliance anxiety, discouraged entrepreneurship, and diverted administrative and judicial resources from more serious violations.

A journey of reform

This reform journey began with the Jan Vishwas (Amendment of Provisions) Act, 2023, which decriminalised minor offences by amending 183 provisions across 42 Central Acts administered by 19 Ministries and Departments. By replacing criminal penalties for technical and procedural non-compliances with civil penalties or administrative measures, it significantly reduced the compliance burden on businesses and citizens, improving both ease of doing business and ease of living.

Building on this foundation, the 2026 Bill, commonly referred to as the Jan Vishwas 2.0, represents a decisive scale-up of this reform effort. The Bill proposes amendments to 784 provisions across 79 Central Acts administered by 23 Ministries and Departments, including the decriminalisation of 717 provisions. It also rationalises the statute book by removing obsolete and redundant offences, thereby strengthening the coherence and credibility of India’s overall regulatory architecture.

Extensive engagement between government, industry bodies, experts and other stakeholders has helped identify provisions where criminal liability was disproportionate to the nature of the offence. Such sustained dialogue has been critical in ensuring that regulatory objectives are preserved even as enforcement mechanisms are made more facilitative. Going forward, continued consultation will remain essential to keep regulation aligned with evolving economic realities.

A process of engagement

The Confederation of Indian Industry (CII) has shaped this reform agenda through sustained, evidence-based policymaker engagement. Industry representations consistently highlighted a large number of statutory offences related to minor and procedural lapses — delays in filings, documentation gaps or clerical errors — that did not warrant criminal prosecution. The CII has emphasised that decriminalisation of such offences strengthens compliance rather than diluting enforcement.

The CII’s advocacy has gone beyond decriminalisation alone. A persistent industry recommendation has been to move away from court-imposed ‘fines’ toward a system of regulatory ‘penalties’ administered by executive authorities, with clear rules, proportionality, and time-bound resolution. The CII has also stressed the need for the retrospective application of decriminalisation reforms, covering cases currently pending in criminal courts. The Jan Vishwas 2.0 seems to address these long-standing concerns very well.

At a broader level, the Jan Vishwas 2.0 reflects a fundamental shift in regulatory philosophy, from criminalisation to trust, proportionality and economic efficiency. It recognises that most technical or procedural violations occur without mala fide intent and are better resolved through civil or administrative mechanisms. The reform explicitly retains stringent enforcement for serious offences where public interest, safety, environmental protection or national priorities are involved. The amendments span key sectors such as exports, textiles, the environment, and transport, and introduce graded enforcement mechanisms, including warnings and lower penalties for first-time or minor violations. Such measures should reduce regulatory uncertainty and boost confidence, especially for micro, small and medium enterprises (MSME) facing high compliance burdens.

Reduces ‘court congestion’

These reforms could significantly help India’s overburdened judiciary. With nearly 50 million cases pending in courts — many for minor procedural or technical violations — shifting such matters out of criminal courts can reduce congestion and improve efficiency. Government indications, post the passing of the Bill in Parliament, suggest many pending minor cases may be reviewed for closure under the revised framework.

The Bill also advances trust-based regulation by introducing tools such as improvement notices and proportionate penalties for first-time contraventions. This approach recognises the reality that most businesses and citizens act in good faith and comply more effectively in a regulatory environment that is clear, predictable and fair.

The success of the Jan Vishwas 2.0 will depend on effective implementation. Strengthening institutional capacity for administrative adjudication, ensuring uniform enforcement practices, and issuing clear guidance to regulated entities will be critical to realising the full benefits of the reform for industry and citizens.

By decisively moving towards a trust-based, proportionate and growth-oriented framework, The Jan Vishwas 2.0 has the potential to create a more predictable, transparent and investor-friendly environment. Ultimately, the reform reinforces a simple yet powerful principle: compliance works best when driven by clarity, proportionality, and — above all — trust.

Note: This article was first published in THE HINDU