Govt allows businesses to fix first-time procedural violations before penal action
New Delhi, June 29
The Centre has introduced an Improvement Notice mechanism under the Legal Metrology Act, 2009, allowing businesses to rectify specified first-time procedural and regulatory violations before penal proceedings are initiated.
The Department of Consumer Affairs in an official statement on Monday, said the new mechanism has been introduced through the Jan Vishwas (Amendment of Provisions) Act, 2026.
The reform aims to promote ease of doing business by encouraging voluntary compliance, reducing unnecessary litigation and creating a more trust-based regulatory framework, while continuing to safeguard consumer interests.
It stated "Under the new mechanism, businesses committing specified first-time procedural or regulatory non-compliances will be given an opportunity to rectify the deficiency before penal proceedings are initiated".
Under the new system, a Legal Metrology Officer may issue an Improvement Notice when a business commits a specified first-time procedural or regulatory non-compliance covered under the Act. The notice will identify the deficiency and provide reasonable time to correct it.
If the regulated entity rectifies the issue within the prescribed period, penal proceedings and related litigation can be avoided. However, failure to comply with the notice or repeated violations will continue to attract action under the provisions of the Legal Metrology Act.
According to the Department, the mechanism applies to manufacturers, importers, packers, dealers, repairers, traders, MSMEs and other regulated entities.
The government said the reform is designed to encourage voluntary compliance and timely self-correction while reducing compliance costs and improving regulatory certainty for businesses.
It will also allow enforcement authorities to focus on deliberate and repeated violations that affect consumer interests.
The Improvement Notice mechanism covers specified first-time procedural and regulatory non-compliances related to registration requirements, documentation and record maintenance, model approval, manufacture and sale of weights and measures, imports, packaged commodities and furnishing statutory information and returns.
The provisions covered include those relating to the use or sale of non-standard weights and measures, transactions in contravention of prescribed standards, non-production of documents, failure to obtain model approval, import-related violations, furnishing false information and operating without registration.
The Department clarified that the mechanism does not dilute consumer protection or weaken enforcement under the Legal Metrology Act. Strict action will continue against fraud, repeated violations, tampering and other acts that adversely affect consumer interests.
According to the government, the reform reflects its vision of "Minimum Government, Maximum Governance" by promoting trust-based regulation and creating a transparent, predictable and business-friendly regulatory environment.
The Department said the mechanism seeks to strike a balance between supporting honest businesses in achieving compliance and preserving the integrity of the legal metrology system while safeguarding consumer interests.
— ANI
Reader Comments
As someone who's worked in compliance for a multinational here, this is a welcome shift. The old approach was too punitive. But I worry about the "repeated violations" clause - it needs clear definitions to avoid arbitrary action. Overall, good step for 'ease of doing business' 🇮🇳
Finally some common sense! Our family business always struggled with understanding all the legal metrology rules. First-time rectification is fair - we're not trying to cheat, just sometimes the paperwork gets confusing. But consumer safety must still be top priority, not just business ease.
Good reform in principle, but the devil is in implementation. Will these Improvement Notices be issued promptly or will there be delays? And what about industries where non-compliance can directly harm consumers - like expired weights in petrol pumps? There should be clear categories where this doesn't apply.
As a consumer rights advocate, I'm cautiously optimistic. Yes, honest businesses deserve a chance, but we've seen how "trust-based" regulation can be exploited. The key is ensuring that improvement notices are tracked transparently and that repeat offenders face real consequences. No more 'arre yaar, chalo theek kar dete hain' attitude for serious violations.
This is exactly the kind of regulatory evolution India needs. The old 'fine first, ask questions later' approach was killing innovation, especially for startups. But I hope the government also invests in training officers to properly differentiate between genuine mistakes and deliberate fraud. Implementation will make or break this policy.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.