Parliament has passed the Jan Vishwas (Amendment of Provisions) Bill, 2026, decriminalising 717 provisions out of 784 amended provisions across 79 Central Acts. The core shift: minor, technical or procedural business defaults, the kind that previously exposed an owner or director to criminal prosecution and potential jail time, now move to civil and administrative penalties instead, with graded enforcement that starts with an advisory notice rather than a police case.
What exactly got decriminalised?
Of 784 provisions amended by the Bill, 717 are decriminalised entirely, converting what used to be a criminal offence, often carrying imprisonment as a possible penalty, into a civil or monetary penalty instead. The remaining 67 provisions are amended to ease compliance in other ways, short of full decriminalisation. This builds on the original Jan Vishwas Act, 2023, which covered 42 Central Acts and over 180 provisions; the 2026 Bill roughly quadruples that scope to 79 Acts.
Does this mean compliance requirements have gone away?
No. The underlying legal obligations, filings, registrations, disclosures, and other statutory requirements, are unchanged. What changes is the consequence for getting a technical or procedural detail wrong the first time: many provisions now require an advisory notice or warning before any penalty is imposed, and the penalty itself is typically monetary rather than criminal prosecution.
What is excluded from this reform?
Offences involving fraud, wilful violation, or harm to public safety, health or the environment are not covered by this decriminalisation. The reform is specifically aimed at technical, procedural and minor defaults, the kind of paperwork or filing error that previously carried disproportionate criminal exposure relative to the actual harm caused.
Why does this matter more for MSMEs specifically?
Smaller businesses are the ones most likely to lack a dedicated compliance or legal team, and were correspondingly the most exposed to criminal liability for inadvertent, non-fraudulent lapses, a late filing, an incomplete form, a missed technical requirement. The shift to graded enforcement, warning first, penalty later, meaningfully lowers the litigation and prosecution risk that came with routine, honest compliance mistakes.
What should a business owner do now?
Review which of your compliance obligations fall under the 79 Central Acts covered by this Bill, and confirm with an advocate or company secretary which specific provisions relevant to your business have moved from criminal to civil penalty. The obligation to comply on time is unchanged; what has changed is what happens if you get it wrong. Not every corporate compliance failure gets this lighter treatment, though; see our piece on Section 185's mandatory special resolution for director loans, where the Supreme Court took a stricter line in 2026.
Disclaimer: This article is for general information only and is not legal advice. Which specific provisions apply to your business, and their exact commencement dates, should be confirmed with a qualified advocate or company secretary.
Frequently asked questions
What is the Jan Vishwas (Amendment of Provisions) Bill, 2026?
A law passed by Parliament in 2026 that decriminalises 717 provisions out of 784 amended provisions across 79 Central Acts, replacing criminal penalties (including jail time) for minor, technical or procedural defaults with civil and administrative penalties instead. The remaining 67 provisions are amended to ease compliance in other ways.
Does this mean businesses can now ignore compliance requirements?
No. The underlying compliance obligations still apply. What has changed is the consequence for a first-time, non-fraudulent, procedural lapse: instead of automatic criminal prosecution and the threat of imprisonment, many provisions now allow for an advisory notice or a monetary penalty first.
Does this apply to serious offences like fraud?
No. The reform targets minor, technical and procedural defaults, not offences involving fraud, wilful violation, or harm to public safety or the environment. Serious violations under the same Central Acts generally continue to attract criminal consequences.
How does this help MSMEs specifically?
Small businesses were disproportionately exposed to criminal liability for paperwork errors, late filings and similar technical defaults, since they often lack dedicated compliance teams. The shift to graded enforcement, warnings before penalties, reduces the litigation and prosecution risk MSMEs previously faced for exactly these kinds of lapses.
Is this the first Jan Vishwas law?
No. This is a successor to the Jan Vishwas (Amendment of Provisions) Act, 2023, which decriminalised over 180 provisions across 42 Central Acts. The 2026 Bill significantly expands that effort to 79 Acts and over 700 additional provisions.