Jan vishwas act

Jan vishwas act

Jan vishwas act:

• An important step has been taken in the direction of establishing a more business-friendly environment with the recent passing of the Jan Vishwas (Amendment of Provisions) Act, 2023. 
• It will establish the groundwork for enhancing India’s ease of doing business. 
• By lowering compliance and eliminating the threat of jail for infractions, it aims to boost “trust-based governance,” encourage business growth, and make life easier. 
• The Indian Post Office Act of 1898, the Environment (Protection) Act of 1986, the Public Liability Insurance Act of 1991, the Information Technology Act of 2000, the Indian Forest Act of 1927, the Patents Act of 1970, and other Acts are among the 42 Acts that are amended by Act. 

The features of the Jan Vishwas Act, 2023

The process of decriminalizing offenses:

• It replaces minor offenses with civil penalties or administrative actions and decriminalizes those that do not endanger the public interest or national security. 
• 42 Central Acts have 183 provisions that are being decriminalized. 
• For instance, under the IT Act, 2000, revealing personal information in violation of a valid contract carries a fine of up to Rs 25 lakh rather than a maximum three-year jail sentence. 

Elimination of transgressions: 

The Bill completely eliminates a few offenses. All offenses under the Indian Post Office Act of 1898 are included in this. 

Periodic Revision of Penalties: 

• Every three years, the fines and penalties will increase by 10% of the minimum amount. 

Chief Judiciary Officers: 

• To decide on penalties, the Government may designate one or more Adjudicating Officers.

Appellate Procedures: 

• A grievance redress procedure concerning the adjudicating officer’s decision is instituted. 

The need of the Jan Vishwas Act, 2023

Bureaucratic Obstacles: 

• The Union and State governments’ laws, rules, and regulations have erected obstacles that impede the free exchange of ideas, capital, and entrepreneurial spirit.
• As an example, ORF reports that a manufacturing company employing more than 150 people handles 500–900 compliances annually, at an approximate cost of Rs 12–18 lakh. It also discovered that imprisonment clauses are present in 37.8% of compliances.

 Investment Barrier: 

• According to a parliamentary committee, the regulatory burden significantly discourages investors.
  For example, protracted approval procedures can increase expenses and reduce investment.

Pressure on the Justice System: 

• Of the 4.4 crore cases that are pending, 3.3 crore are criminal cases, according to the National Judicial Data Grid. 

Outdated Laws:

• The bureaucratic system continues to be burdened by antiquated and out-of-date legislation. This causes a lack of trust between the public and governmental organizations. 

MSMEs:

• There are too many rules governing businesses, which result in needless red tape.
• For instance, doing business in India is currently governed by 1,536 laws, or roughly 70,000 compliances. For MSMEs, these onerous compliances have proven to be a burden. 

Benefits of the Jan Vishwas Act, 2023:

The benefits of the Act are outlined as under:  

Justifies Criminal Provisions:

• Justifying criminal provisions will prevent individuals from being prosecuted for inadvertent infractions or small, procedurally or technically incorrect defaults. 

Maintains Proportionality: 

• It strikes a balance between the gravity of the transgression and the recommended penalty. 

 Economic Growth: 

• Removing administrative obstacles will support company expansion. 
• The government and businesses will both save time and money as a result of the various law amendments. 

Lessens the Pressure on the Justice System: 

• The backlog of minor criminal cases delays the processing of more serious cases. This puts additional strain on the justice system. Decriminalization is one provision that would greatly lessen the undue strain on the legal system. 

Enhance MSMEs’ Health:

• The Act makes MSMEs’ burdens and regulatory frameworks lighter. As a result, they would have more equal opportunities than their international counterparts.

Trust-Based Governance: 

• By guaranteeing that individuals, companies, and government agencies can function without fear of incarceration, it will promote trust-based governance. 

concerns regarding the Jan Vishwas Act, 2023

Not True Decriminalization: 

• Fines or penalties are used in place of incarceration, which is insufficient for decriminalization.
•  It engages in what is referred to as “quasi-decriminalization.” 

 Adjudicating officers’ expertise:

• Questions concerning the adjudicating officers’ technical competence for such legal proceedings have been raised concerning their appointment under the Air (Prevention and Control of Pollution) Act and the Environment (Protection) Act. 

A Small Percentage of Laws Affected: 

• The Act deregulated a relatively small portion of India’s regulatory framework, namely the number of offenses.
•  According to the ORF, only 23 Acts a negligible portion of the 42 Acts of Parliament mentioned have an effect on the ease of doing business. 

Environmental Protection Issues:

• The Vidhi Centre for Legal Policy states that eliminating the imprisonment provision altogether may also eliminate the environmental legislation’s deterrent effect, particularly for large corporations. 

Concerns regarding privacy:

• Postal employees who unlawfully open mail items may face a two-year prison sentence, a fine, or both under the Act. Eliminating these infractions takes away the protections against privacy violations.

Independence of Adjudicating Officers:

• Governmental organizations occasionally transgress both the EP Act and the Air Act.
• This begs the question of whether public servants acting in such capacities would be sufficiently impartial adjudicators.