Compliance Reset: Decriminalising Acts and Demanding Discipline

Legal Updates
June 24, 2026

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Brief Overview:

To promote ease of doing business and improve trust-based governance the Jan Vishwas (Amendment of Provisions) Act, 2026 (“Act”) has been enacted to decriminalize minor and technical offences across various Central Acts and substitute criminal punishments with civil consequences. The Act not been brought into force in its entirety.

Through a separate notification, the Ministry of Finance (Department of Financial Services) has notified the provisions governing the Reserve Bank of India (RBI), Life Insurance Corporation (LIC), general insurance companies, and pension regulators. The notifications were issued by the Ministry of Finance which has come into effective from June 23, 2026.

What does the Act do?

1) Removal of Imprisonment: The Act has substituted imprisonment with stricter penalties inter alia in the Real Estate (Regulation and Development) Act, 2016 (“RERA”), Indian Succession Act, Life Insurance Act, General Insurance Business (Nationalisation) Act, 1972 and Requisitioning and Acquisition of Immovable Property Act, 1952.

2) Only Penalty for Non-Compliance with Appellate Tribunal Orders by the Allottees under RERA: Penalty of up to 10% of the cost of the plot, apartment, or building.

3) Rationalisation of RBI Act Penalty Provisions: Section 58B has been re-categorised to deal with offences (instead of penalties) Section 58G has been amended to replace references to “fine” with “penalties”.

4) Decriminalising Compliance: Minor technical lapses, such as late filings, documentation errors, or procedural delays, are no longer treated as criminal offences, and are instead dealt with through civil penalties / monetary fines.

5) New Enforcement framework for quick resolution: Adjudicating officers and appellate authorities now handle defaults, easing the load on criminal courts.

6) Certain amended laws also provide for graded monetary penalties, including periodic enhancement (for example, up to 10% every three years, subject to statutory caps) such as in the Electricity Act 2003.

Technical Details:

The Act seeks to decriminalise and rationalise offences under various Central legislations to promote trust-based governance and enhance the ease of doing business. It shifts the focus from criminal prosecution for minor and technical non-compliances to a civil penalty-based framework.

JC takeaway:

The Act reflects the change in legislative philosophy of replacing criminal sanctions with civil accountability and amends over 70 Central Acts including acts like the Reserve Bank of India Act, 1934; Food Safety and Standards Act, 2006; Motor Vehicles Act, 1988; Indian Ports Act, 2025; Copyright Act, 1957; Patent Act, 1970; Delhi Police Act, 1978, Drugs and Cosmetics Act, 1940; Life Insurance Corporation Act, 1956; Delhi Development Act, 1957; Pharmacy Act, 1948, Legal Metrology Act, 2009, and various others, to decriminalize offenses and decriminalises various provisions, mainly to improve ease of doing business.

For further details, please see:

The Jan Vishwas (Amendment of Provisions) Act, 2026