Answer

Introduction

India has 882 central laws with 7,305 criminal provisions, over 75% outside core criminal justice (Vidhi Centre for Legal Policy). Criminalising minor technical or civic lapses clogs courts and stifles enterprise. The Jan Vishwas 2.0 Bill seeks trust-based governance by rationalising such offences to boost ease of living and business.

Jan Vishwas 2.0 Improves Ease of Doing Business and Ease of living

Ease of Doing Business

• Reduced Compliance Burden: It decriminalises 288 provisions related to doing business , reducing the fear of imprisonment for businesses.
  Eg: A 2022 Observer Research Foundation report found that out of 69,233 compliances that businesses have to follow, 37.8% carry imprisonment clauses.
• Shift to Civil Penalties: It converts jail terms into monetary fines, ensuring proportionality in enforcement.
  Eg: Under the Electricity Act, 2023, it proposes a fine of Rs 10,000–10 lakh instead of a three-month jail term for non-compliance.
• Predictability in Business Operations: Automatic penalty escalation creates stable and foreseeable compliance costs.
  Eg: It introduces a 10% automatic penalty hike every 3 years for repeat offences, ensuring deterrence without fresh legislative changes.
• Encourages Foreign Investment: It aligns India with global best practices of regulatory leniency, which boosts investor confidence.

Ease of Living

• Eliminates Arbitrary Prosecution: It removes colonial-era petty offences that harassed individuals unnecessarily.
  Eg: Out of the 355 provisions covered in the Bill, 67 specifically target improving ease of living by removing such offences.
• First-Time Offender Protection: It introduces “improvement notices,” prioritising corrective action over punishment.
  Eg: Concepts of warning and improvement notice for first-time offenders in 76 offences under 10 acts.
• Reduces Litigation Burden on Citizens: It removes minor cases from courts, allowing focus on serious crimes.
  Eg: As of August 2025, over 3.6 crore criminal cases were pending in India’s district courts (National Judicial Data Grid).
• Promotes Trust in Governance: It sends a strong signal of a pro-citizen and reformist approach by the state.

Despite its progressive intent, the Bill faces several structural and institutional challenges in implementation.

Challenges in Effective Implementation

• Capacity Deficits in Regulators: The shift to civil penalties requires robust adjudication mechanisms, which are currently weak.
• Slow Progress and Legislative Delays: The pace of reform has been sluggish, raising concerns about timely execution. 
• Uniform Adoption Across States: Many provisions need state-level approval and implementation, which is often inconsistent.
• Possibility of Penalty Misuse: Heavy fines risk being misused as revenue-generation tools rather than compliance mechanisms.
• Judicial Interpretation Challenges: Courts may interpret reforms conservatively, undermining their impact.
• Resistance from Enforcement Agencies: The loss of discretionary powers may cause reluctance or non-cooperation.

Way Forward

• Capacity Building of Regulators: Training on adjudication, mediation, and non-punitive enforcement is essential.
• Digital Compliance Platforms: Transparent, technology-driven monitoring can reduce inspector raj.
  Eg: Karnataka’s e-Biz portal’s Central Inspection System (CIS) integrates inspections across Labour, Factories & Boilers, and Pollution Control departments.
• Harmonisation with States: Encouraging states to adopt reforms through fiscal incentives is necessary.
  Eg: The GST model demonstrated effective consensus-building among states.
• Periodic Review of Laws: Introducing sunset clauses will prevent regulatory clutter and ensure relevance.
  Eg: The United Kingdom’s Enterprise and Regulatory Reform Act, 2013 mandates sunset and review provisions for secondary legislation, enabling timely removal or revision of outdated laws.
• Awareness and Stakeholder Engagement: Active outreach to MSMEs and citizens can foster a culture of compliance.
  Eg: The ‘Samvaad’ initiative by the CGST commissionerate in Greater Noida organizes monthly dialogues between taxpayers and officials.

Conclusion

The Jan Vishwas 2.0 Bill marks a shift to trust-based governance, easing business and citizen compliance by removing outdated criminal provisions. It aligns with “Minimum Government, Maximum Governance” principle, reflecting a shift from strict regulation to facilitation, fostering efficiency, investment, and citizen-centric governance in India.

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