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Lok Sabha Refers Corporate Laws Amendment Bill to Joint Parliamentary Committee

The Lok Sabha has approved referring the Corporate Laws (Amendment) Bill, 2026, to a Joint Parliamentary Committee for detailed scrutiny. Introduced by Finance Minister Nirmala Sitharaman, the bill aims to amend key corporate statutes to decriminalise minor offences and reduce compliance burdens for businesses. Opposition members, including Manish Tewari and Sougata Ray, opposed the bill, alleging it dilutes Corporate Social Responsibility provisions. The legislation follows recommendations from a Company Law Committee and aims to improve the investment climate and corporate governance.

Key Points: Corporate Laws Bill Sent to JPC for Scrutiny

  • Ease of doing business
  • Decriminalise minor offences
  • Reduce compliance burden
  • Opposition raises CSR concerns
2 min read

Lok Sabha gives nod for referring Corporate Laws (Amendment) Bill to JPC

Lok Sabha approves referring the Corporate Laws (Amendment) Bill, 2026, to a Joint Parliamentary Committee for detailed review of business reforms.

"A High-Level Committee for Regulatory Reforms will be set up for a review of all non-financial sector regulations... - Nirmala Sitharaman"

New Delhi, March 23

The Lok Sabha on Monday gave its approval for referring the Corporate Laws Bill, 2026, to the Joint Parliamentary Committee for further scrutiny.

Finance Minister Nirmala Sitharaman introduced the Bill, which aims to amend the Limited Liability Partnership Act, 2008 and the Companies Act, 2013, in the lower house of the Parliament and proposed that it be sent to the JPC for detailed analysis.

The Bill aims to facilitate ease of doing business, decriminalise minor offences, replace certain criminal provisions with civil penalties and reduce compliance burdens for small firms, startups, and produce companies set up by farmers.

Earlier, the opposition members, including Congress member Manish Tewari, Trinamool Congress member Sougata Ray of TMC and the DMK's Dr T. Sumathy, opposed the introduction of the bill.

They alleged that the proposed legislation dilutes the provisions of Corporate Social Responsibility. Responding to their concerns, the Finance Minister said that the proposed amendment will not only attract more investments but also facilitate corporate governance.

Sitharaman highlighted that this legislation has been brought after two years of full deliberation. She said the opinion of the representatives from industry chambers, professional institutes, legal and accounting experts, and the public was taken and examined before introducing the Bill in the House.

The amendments in the laws are made on the basis of the Company Law Committee (CLC) constituted by the government to facilitate greater ease of doing business for business entities. The 11-member CLC was constituted in September 2019. Its members included former Lok Sabha Secretary General T.K. Viswanathan, Kotak Mahindra Bank Managing Director Uday Kotak, Shardul Amarchand Mangaldas & Co Executive Chairman Shardul S. Shroff, chartered accountant G. Ramaswamy, and Xpro India Chairman Sidharth Birla.

The CLC has submitted its last report to the government on March 21, 2022.

Recommendations of the CLC were deliberated by various stakeholders and considered by the High-Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR), chaired by former Cabinet Secretary and NITI Aayog member Rajiv Gauba.

In her 2025-26 budget speech, the Finance Minister had announced the constitution of the committee. "A High-Level Committee for Regulatory Reforms will be set up for a review of all non-financial sector regulations, certifications, licenses, and permissions," she said on February 1 last year.

- IANS

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Reader Comments

P
Priya S
While ease of doing business is good, I hope the JPC looks closely at the CSR dilution concerns raised by the opposition. Corporate responsibility towards society should not be compromised for profits. A balanced approach is needed.
V
Vikram M
As someone who runs a small manufacturing unit, the current compliance web is a nightmare. Replacing criminal provisions with civil penalties for minor lapses is a sensible reform. Hope it passes soon!
R
Rohit P
The committee had big names like Uday Kotak and Shardul Shroff. Their recommendations should be solid. Sending it to JPC is just procedural. This will definitely help attract more FDI and make India more business-friendly.
M
Meera T
Two years of deliberation and stakeholder consultation sounds thorough. The focus on farmer producer companies is particularly good. Agriculture needs corporate efficiency without losing its soul. Let's see what the JPC says.
S
Sarah B
Interesting to see the process. The opposition raising valid concerns shows a healthy democracy. The JPC should address the CSR issue transparently. Good governance isn't just about ease for companies, but also accountability.
N
Nikhil C
Finally! Our startup has spent more time on legal paperwork than on product development. This bill, especially for LLPs, could be a game-changer. Hope

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