Maharashtra's Bold Reform: How a New Bill Aims to Decriminalize Business

The bill was presented by the Minister of Information Technology, Ashish Shelar.

The bill has proposed to shift the regulatory framework from a punitive approach (criminal penalties) to one based on trust and civil penalties, reduce the compliance burden, litigation, and unnecessary criminal penalties for routine, technical, or procedural non-compliances and modernise penalty frameworks and rationalise punitive provisions to create a more predictable and business-friendly investment climate.

The bill has proposed replacing imprisonment provisions for minor and technical violations with civil penalties or fines. This is intended to free up judicial and enforcement agencies and reduce costs for citizens and businesses.

"The state government seeks to replace punishments for such minor contraventions with civil penalties for reducing the burden on courts and also for increasing administrative efficiency. Offences involving serious threats to public order, public health, life or safety have been retained, while those relating to minor non-compliance, procedural lapses and outdated regulatory requirements have been decriminalised. Further, punishments such as fines have been revised and regionalised," said the bill.

The bill has proposed to amend the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017; Maharashtra Industrial Relations Act, 1946, The Maharashtra Stamp Duty Act, 1958, Maharashtra Medical Council Act, Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 and Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 and Maharashtra Nursing Homes Registration Act.

NCP SP legislator and former finance minister Jayant Patil welcomed the bill but demanded that the government should also present another bill for the protection of investors who currently face harassment and trouble from various sections.

He claimed the new legislation will help to ensure investor protection and to further improve Maharashtra's pre-eminent position in attracting investments.

In his response, Minister Shelar said the government will ensure protection to investors, adding that the Jan Vishwas Act is a part of improving the ease of doing business for citizens, investors and facilitating simplification of procedures.

"This is part of a structural reform push to streamline administrative processes and encourage entrepreneurship and economic growth in Maharashtra," he noted.

According to the bill, a core element of Viksit Maharashtra Vision is the reform of the regulatory framework to shift from a punitive, compliance-heavy regime to a trust-based based facilitative model of governance.

"Excessive regulation, offices of minor and technical nature and offences of procedural non-compliance impose a high cost on business, citizens and the State. Such provisions not only deter entrepreneurship and hinder the ease of doing business and the ease of living, but also place an undue burden on the judicial system and reduce administrative efficiency," said the bill.

- IANS