Jan Vishwas (Amendment of Provisions) Act, 2023

The Jan Vishwas (Amendment of Provisions) Act, 2023 is a law that changed many existing central laws in one go. It removed jail terms for small, technical or procedural mistakes and replaced them with money penalties. "Jan Vishwas" means "people's trust". The idea is that the state should trust citizens and businesses and not treat every small lapse as a crime. A second, much larger law, the Jan Vishwas (Amendment of Provisions) Act, 2026, carried this work further.

Why does it exist?

Many Indian laws were written long ago, some in the colonial period. They put jail terms even on minor slips, like a late filing or a wrong form. A 2022 study by the Observer Research Foundation, titled Jailed for Doing Business, counted 26,134 compliances in India's business laws that carry imprisonment. That was almost two out of every five business compliances. This creates three big problems:

• Fear and harassment: An honest business owner can face jail for a paperwork error. This gives officers great power and can lead to misuse.
• Clogged courts: Every small case goes to a criminal court, adding to the huge pile of pending cases.
• Less investment: Entrepreneurs and foreign investors avoid places where small mistakes can mean jail.

Think of a school. If a student forgets to bring a notebook, the teacher gives a warning or a small fine. The student is not sent to the police. Jan Vishwas applies this sense of proportion to business and daily life.

Where did it come from?

• 22 December 2022: The Jan Vishwas (Amendment of Provisions) Bill, 2022 was introduced in the Lok Sabha and sent to a Joint Parliamentary Committee (a committee with members from both Houses), chaired by P.P. Chaudhary.
• 17 March 2023: The committee gave its report.
• 27 July 2023: The Lok Sabha passed the Bill. 2 August 2023: The Rajya Sabha passed it.
• 11 August 2023: The President gave assent. It became Act No. 18 of 2023.
• 18 August 2025: A second Bill, often called Jan Vishwas 2.0, was introduced and sent to a Select Committee. The committee reported on 13 March 2026 and asked for a much wider scope. So the 2025 Bill was withdrawn.
• 27 March 2026: The Jan Vishwas (Amendment of Provisions) Bill, 2026 was introduced. It was passed by the Lok Sabha on 1 April 2026 and the Rajya Sabha on 2 April 2026.

What did the 2023 Act do?

• It changed 183 provisions in 42 Central Acts handled by 19 Ministries/Departments.
• Examples of laws changed: the Indian Post Office Act, 1898, the Environment (Protection) Act, 1986, and the Information Technology Act, 2000.
• Methods used:
• In some provisions, both jail and fine were removed.
• In some, jail was removed and the fine kept (or raised).
• In some, jail and fine were turned into a penalty (a civil money charge decided by an officer, not a court).
• In some, compounding was introduced, so a person can settle the matter by paying a sum.
• Adjudicating officers: Officers were appointed to decide penalties through a simple inquiry instead of a criminal trial. Appeals lie to a higher authority.
• Fines rise automatically: Fines and penalties go up by 10% of the minimum amount every three years, so they keep their deterrent value without Parliament changing the law each time.

What did the 2026 Act add?

• It amends 79 Central Acts across 23 Ministries, touching 784 provisions.
• 717 provisions are decriminalised for ease of doing business, and 67 provisions are changed for ease of living.
• Graded approach: For some first-time mistakes, the law now gives an advisory or warning first, with a penalty only for repeat lapses. It also adds improvement notices (for example, under the Legal Metrology Act, 2009).
• Clear process: Adjudicating authorities, show-cause notices, personal hearings and appeals are provided for.
• Laws changed include the Drugs and Cosmetics Act, 1940, the Electricity Act, 2003, the Copyright Act, 1957 and the National Highways Act, 1956.

How does decriminalisation work? Criminal vs civil

• A criminal offence is tried by a court under criminal procedure. It can lead to jail, leaves a criminal record, and can take years.
• A civil penalty is decided by an officer through a short inquiry. It leads only to a money penalty and is much faster.
• Decriminalisation moves minor, technical and procedural lapses from the first box to the second. Serious crimes such as fraud, cheating and actions that harm health, safety or the environment usually stay criminal.

India's wider decriminalisation drive

• Companies Act, 2013: Amendments in 2019 and 2020 shifted many minor offences to in-house penalties decided by officers. This followed the Companies Law Committee (2018).
• Taxation: Prosecution thresholds and compounding rules have been eased over the years. The GST Council's 2026 discussion on removing arrest powers and the CBDT's removal of arrest and detention from income-tax recovery rules continue this trend.
• Criminal law reform: The Bharatiya Nyaya Sanhita, 2023 replaced the Indian Penal Code from 1 July 2024. It also brought in community service as a new punishment for some petty offences.

Commonly confused concepts

• Decriminalisation vs legalisation: Decriminalisation does not make an act legal. The act is still wrong and still punished, but with a money penalty instead of jail. Legalisation means the act is allowed.
• Penalty vs fine: A fine is imposed by a court after a criminal trial. A penalty is imposed by an officer in a civil process.
• Compounding vs adjudication: Compounding is when the accused voluntarily pays a sum to close a criminal case. Adjudication is when an officer hears the case and decides the penalty.
• Jan Vishwas Act vs Jan Vishwas 2.0: The 2023 Act covered 42 Acts and 183 provisions. The 2026 Act covers 79 Acts and 784 provisions.
• Omnibus law vs ordinary amendment: Jan Vishwas is an omnibus law: one Act that amends many different laws together. An ordinary amendment changes only one law.

Issues, criticism and the way forward

• Too much power to officers: Adjudicating officers are often from the same department that brings the case. Critics say this mixes the roles of prosecutor and judge.
• Deterrence may weaken: Some experts worry that large companies may treat money penalties as a "cost of business", especially for environmental or health violations.
• Unclear standards: Studies have pointed out that the choice of which offences to decriminalise was not always based on a clear, common test.
• States' laws remain: Many of the 26,000-plus jail clauses are in state laws and rules, which central Acts cannot change.
• The government's position: Trust-based governance reduces harassment, cuts court backlogs and improves ease of doing business, while serious crimes stay criminal.
• Way forward: Commonly suggested steps are a clear principle for when a lapse deserves jail, independent adjudicating officers, regular review of fines, and similar reforms in state laws.

Concepts to Know

• Decriminalisation: Changing the law so that an act is no longer a crime punished by jail, but is handled with a civil penalty.
• Compliance: Every rule a business or citizen must follow under a law: filing forms, keeping records, getting licences.
• Adjudicating officer: A government officer given legal power to hear a case and decide a penalty, like a small, quick court inside the department.
• Cognizable vs non-cognizable offence: In a cognizable offence, police (or authorised officers) can arrest without a court warrant. In a non-cognizable offence, a warrant is needed.
• Select Committee vs Joint Parliamentary Committee: A Select Committee has members of one House only. A Joint Parliamentary Committee has members of both Houses. Both are set up to study a particular Bill.