Reforms aim to boost ease of doing business, reduce litigation burden
New Delhi, April 3: Parliament has passed the Jan Vishwas (Amendment of Provisions) Bill, 2026, introducing sweeping reforms to decriminalise minor offences and simplify compliance across the health sector, in a move aimed at improving ease of doing business and governance.
The legislation amends 784 provisions across 79 Central Acts administered by 23 ministries. Of these, 717 provisions have been decriminalised, while 67 have been revised to improve ease of living. Overall, the Bill rationalises more than 1,000 offences by removing minor violations from the criminal framework.
Shift from criminal penalties to fines
A key feature of the reform is the replacement of imprisonment for minor procedural violations with graded monetary penalties. The government said this marks a transition towards a trust-based regulatory framework while retaining strict action for serious offences affecting public health and safety.
In the health sector, amendments cover major laws including the Drugs and Cosmetics Act, 1940; Pharmacy Act, 1948; Food Safety and Standards Act, 2006; Clinical Establishments (Registration and Regulation) Act, 2010; and the National Commission for Allied and Healthcare Professions Act, 2021.
Adjudication mechanism introduced
The Bill introduces structured adjudication mechanisms to handle minor violations without court intervention. Under the amended Drugs and Cosmetics Act, certain offences—particularly those related to cosmetics—will now be dealt with through civil penalties instead of criminal prosecution.
Authorities will be empowered to issue show-cause notices, conduct hearings and impose penalties, with provisions for appeal. This is expected to significantly reduce the burden on courts and speed up resolution of compliance issues.
Reduced litigation, faster resolution
Officials said the reforms will minimise prolonged legal proceedings, especially for procedural lapses such as non-maintenance of records or delays in information submission.
The cosmetics industry, in particular, is expected to benefit from predictable and faster handling of minor infringements.
Sector-wide alignment of regulations
Similar changes have been introduced across other health laws to ensure proportional penalties and improved enforcement. The Pharmacy Act has been updated with higher financial penalties, while the Food Safety law now emphasises proportionate punishment.
The Clinical Establishments Act has been revised to focus on monetary penalties for non-critical deficiencies, encouraging corrective action without criminal proceedings. The allied healthcare professions law has also been strengthened to ensure compliance with professional standards.
Push for consistent, trust-based governance
The government said the reforms aim to harmonise regulatory frameworks across sectors by standardising the shift to civil penalties and adjudication mechanisms. This is expected to reduce regulatory fragmentation and provide greater clarity to businesses and stakeholders.
With participation from 23 ministries, the Bill reflects a whole-of-government approach to easing compliance, reducing litigation and building trust between regulators and stakeholders, while maintaining safeguards for public health.
