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Centre Set to Table Jan Vishwas 2.0: First-Time Offenders to Receive 'Improvement Notice' Instead of Penalty

Written by: Team Angel OneUpdated on: 18 Aug 2025, 10:15 pm IST
Jan Vishwas 2.0 Bill proposes no penalty for first-time offences; offenders to receive 'Improvement Notice' to promote trust-based governance.
Centre Set to Table Jan Vishwas 2.0: First-Time Offenders to Receive 'Improvement Notice' Instead of Penalty
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The Centre is preparing to introduce the Jan Vishwas Bill (Amendment of Provisions) 2025 in the Lok Sabha on August 19, 2025, as per reports. This new version aims to further ease compliance by introducing an “Improvement Notice” system instead of immediate penalties for first-time violations under multiple laws.

First-Time Offences to be Addressed with 'Improvement Notice'

The Jan Vishwas 2.0 Bill shifts from an automatic penalty model to an "inform–correct–penalise" system. First-time offenders will now get a formal 'Improvement Notice' instead of facing financial penalties immediately. 

The notice will offer a specified period to rectify non-compliance. From the second offence onwards, penalties will be levied maintaining the penalty amounts defined earlier in Jan Vishwas 1.0 of 2023, with incremental fines for repeated violations.

Promoting Trust-Based Governance

This initiative aligns with the government's agenda of promoting ease of doing business and reducing harassment for unintentional errors. By introducing this provision, the Centre seeks to foster a regulatory environment based on self-correction and trust, especially for minor operational deviations. Major deterrence will still apply to repeat offenders, ensuring legal accountability remains intact.

Scope of Amendments Proposed

Jan Vishwas 2.0 aims to decriminalise over 100 provisions in various central statutes. The previous version, Jan Vishwas Act 2023, had already decriminalised 180 provisions under laws such as the Indian Forest Act, 1927 and the Food Corporations Act, 1964. Now, the 2025 Bill extends this effort by introducing formal corrective steps before penalties are considered.

Read More: Centre Proposes Increased NMET Funding for Overseas Critical Mineral Acquisitions!

Statements and Policy Direction

During her Budget speech on February 1, 2025, Finance Minister Nirmala Sitharaman announced Jan Vishwas 2.0, reiterating the government’s commitment to removing archaic and punitive regulations. 

On August 15, 2025, Prime Minister Narendra Modi echoed this sentiment, citing the need to remove outdated laws that arbitrarily penalise citizens.

Conclusion

Jan Vishwas 2.0 proposes a forward-looking approach to governance and compliance. By replacing first-time penalties with 'Improvement Notices', it prioritises correction over punishment. The move demonstrates a shift towards a more facilitative relationship between the government and individuals or enterprises.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Aug 18, 2025, 2:53 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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