Decriminalisation of Economic Offences
Policy Debate
Decriminalisation in corporate law refers to converting criminal offences (imprisonment + fine) into civil violations (monetary penalties only). Proponents argue this reduces regulatory harassment, speeds up adjudication, and aligns India with global best practices; critics counter that without adequately deterrent penalties, compliance incentives weaken.
- The Law Commission of India (Report No. 47) and several NITI Aayog papers have recommended decriminalisation of minor procedural corporate offences.
- International comparison: The UK's Companies Act 2006 uses a largely civil penalty system for procedural defaults; the US follows both criminal and civil enforcement depending on the severity of the violation.
- The "math isn't adding up" critique raised by experts refers to penalties that are too low relative to the financial benefits of non-compliance — for instance, a ₹50,000 penalty for incorrect information in name reservation may be negligible for large companies.
- The In-House Adjudication Mechanism (IAM) proposed in the Bill allows the Registrar of Companies to adjudicate defaults — faster than courts but raising questions about due process and appeals.
● Tracked since March 25, 2026 · last seen April 09, 2026 · updates as the daily brief publishes
See it in today’s brief.
Daily current affairs with every static concept explained in place.
Read the daily brief