Govt introduces 'Improvement Notice' mechanism to boost ease of doing business
New Delhi, June 29
The Department of Consumer Affairs has introduced an 'Improvement Notice' mechanism under the Legal Metrology Act, 2009, allowing businesses to rectify specified first-time procedural or regulatory non-compliances before penal proceedings are initiated, according to an official statement on Monday.
The reform has been brought into effect through the Jan Vishwas (Amendment of Provisions) Act, 2026 to promote ease of doing business (EoDB), encouraging voluntary compliance and reducing unnecessary litigation, the Ministry of Consumer Affairs, Food & Public Distribution said.
Under the new mechanism, a Legal Metrology Officer may issue an Improvement Notice to businesses committing specified first-time procedural or regulatory lapses, identifying the deficiency and providing reasonable time for rectification, it added.
If the entity complies within the prescribed period, penal proceedings can be avoided.
However, repeated violations, failure to comply with the Improvement Notice, fraud, tampering and other acts adversely affecting consumer interests will continue to attract action under the Legal Metrology Act.
Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi said the introduction of the Improvement Notice mechanism marks another step towards trust-based governance and ease of doing business.
"The Government has introduced the Improvement Notice mechanism under the Legal Metrology Act, 2009, providing businesses with an opportunity to rectify specified first-time procedural and regulatory non-compliances before penal proceedings are initiated," he said on the social media platform X.
The minister added that the reform would encourage voluntary compliance, reduce unnecessary litigation and lower the compliance burden, while ensuring strict action against fraud, tampering and repeated violations to safeguard consumer interests.
The mechanism seeks to create a more transparent, predictable and business-friendly regulatory environment while maintaining strong consumer protection standards, the government said.
In addition, the reform will apply to manufacturers, importers, packers, dealers, repairers, traders, MSMEs and other regulated entities covered under the Legal Metrology Act.
The mechanism covers specified first-time procedural and regulatory non-compliances relating to registration requirements, documentation and record maintenance, model approval, manufacture, sale and repair of weights and measures, import of weights and measures, packaged commodities, and furnishing of statutory information and returns.
Moreover, the department clarified that the new framework does not dilute consumer protection or weaken enforcement under the Legal Metrology Act.
It is applicable only to specified first-time procedural and regulatory non-compliances.
"The Improvement Notice mechanism reflects the government's vision of 'Minimum Government, Maximum Governance' by promoting trust-based regulation, reducing unnecessary compliance burden and encouraging voluntary compliance," the ministry said.
It added that the reform strikes a balance between supporting honest businesses in achieving compliance and preserving the integrity of the legal metrology system while safeguarding consumer interests.
— IANS
Reader Comments
Logical reform - giving businesses a chance to fix honest mistakes rather than punishing them immediately. But I hope the "reasonable time" for rectification is clearly defined, otherwise it could become another source of discretion for inspectors. Transparency in implementation is key.
As a consumer, I welcome this if it doesn't dilute protections. Many local kirana stores struggle with compliance due to complex rules, but we also need strong action against fraudsters who cheat customers. The balance seems right - one chance for procedural errors, but strict for repeat offenders. Good job govt! 👏
This is a win-win for both honest businesses and consumers. Instead of punishing every tiny mistake, the government is encouraging compliance through education and warnings first. Reminds me of similar approaches in Singapore and UK that have worked well. Hope this reduces the infamous "inspector raj" in India.
Good initiative but needs proper implementation on ground. In my experience, even with such notices, lower-level officials find ways to harass. The key will be training of Legal Metrology Officers and creating a digital system to track these notices transparently. Otherwise, it's just another paper reform.
Exactly what MSMEs needed! We run a small packaging unit and compliance costs were eating into our margins. This change reduces fear of sudden raids for minor issues. But I'm concerned about "specified first-time" being too narrow - hope they expand coverage based on feedback. Baby steps though! 🚀
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