Government Introduces Sweeping Bill to Decriminalize 79 Central Laws
The Indian government on Friday took a significant step towards regulatory simplification by moving a fresh bill aimed at decriminalizing provisions across 79 central laws. This initiative is part of a broader effort to make life simpler for businesses and individuals by reducing legal complexities and penalties.
Comprehensive Decriminalization Exercise
Government officials have confirmed that this decriminalization exercise, when combined with pending amendments to the Companies Act and the new income tax law, now encompasses over 1,000 provisions. The bill proposes amendments to 784 provisions, with 717 being decriminalized outright. For the remaining 67 provisions, the focus is on simplifying processes to enhance ease of living and doing business.
Key Changes Across Diverse Laws
The amendments span a wide range of legislation, from the Damodar Valley Corporation Act to laws governing road transport corporations, the Central Silk Board, and the New Delhi Municipal Corporation. Notably, violations related to rule-making for road transport corporations will no longer result in jail terms. Similarly, certain offences involving "mischief" in national highway development or maintenance will avoid imprisonment.
Other acts affected include The Slum Areas (Improvement and Clearance) Act of 1956, the Mines and Minerals (Development and Regulations) Act, the DDA Act, and the Delhi Municipal Corporation Act. The overhaul extends to the 153-year-old Cattle Trespass Act, which will decriminalize key offences, replace jail terms with financial penalties, and direct collected fines towards animal welfare. The definition of "cattle" is being expanded to include camels, buffaloes, horses, pigs, sheep, and goats, moving beyond the traditional focus on bovines.
Specific Penalty Reductions and Simplifications
Under the Drugs and Cosmetics Act, manufacturing or selling spurious cosmetics will now incur a fine of up to three times the value of the seized product, instead of a one-year jail sentence. The government has also proposed reducing the maximum jail term for interfering with seized items under the Food Safety and Standards Act, 2006, from six months to three months.
Additionally, the bill includes 20 amendments to the Motor Vehicle Act to relax compliance requirements and resolve legal ambiguities. These changes allow for vehicle registration throughout a state rather than in a specific jurisdiction and provide a 30-day grace period after license expiry, during which the license remains effective.
Impact on Legal Provisions
The bill outlines specific reductions in penalties: imprisonment will be removed in 57 provisions, fines eliminated in 158 provisions, imprisonment reduced in 17 provisions, and imprisonment and fines converted to penalties in 113 provisions. This comprehensive approach aims to foster a more business-friendly environment while maintaining regulatory oversight through financial deterrents rather than criminal sanctions.
This legislative move is expected to significantly ease the burden on enterprises and citizens, aligning with the government's ongoing efforts to streamline regulations and promote economic growth through simplified legal frameworks.
