**Executive Summary**
The Jan Vishwas (Amendment of Provisions) Bill, 2026, passed by Parliament, aims to enhance the Ease of Doing Business and Ease of Living by decriminalizing minor offenses across 79 Central Acts. The Bill replaces criminal penalties for minor procedural violations with graded monetary penalties and introduces structured adjudication mechanisms to reduce the burden on the judiciary. Announced on April 3, 2026, these reforms prioritize a trust-based governance framework while maintaining public health safeguards.
**Key Points / Main Content**
**Decriminalization and Penalty Rationalization**
* Amends 784 provisions across 79 Central Acts administered by 23 Ministries to reduce the compliance burden.
* Rationalizes over 1,000 offenses by removing minor infractions and decriminalizing 717 provisions.
* Replaces imprisonment for minor procedural violations with graded monetary penalties.
* Standardizes a shift from criminal to civil penalties to ensure proportionality in enforcement.
**Health Sector Legislative Amendments**
* **Drugs and Cosmetics Act, 1940:** Substitutes imprisonment with financial penalties for minor violations; introduces civil penalties for non-maintenance of documents or non-submission of information.
* **Pharmacy Act, 1948:** Modernizes penalty provisions and increases financial penalties to enhance accountability.
* **Food Safety and Standards Act, 2006:** Streamlines provisions to ensure penalties are proportionate to the nature of the offense.
* **Clinical Establishments Act, 2010:** Emphasizes monetary penalties for deficiencies that do not pose immediate risks to patient safety, encouraging corrective action over criminal proceedings.
* **National Commission for Allied and Healthcare Professions Act, 2021:** Strengthens compliance with professional standards through proportionate penalties.
**New Adjudication Mechanism**
* Introduces a structured civil adjudication process for violations under the Drugs and Cosmetics Act (specifically Sections 27A(ii) and 28A).
* Mandates the appointment of adjudicating authorities by both Central and State Governments.
* Establishes a formal process involving the issuance of show cause notices, personal hearings, and an appellate mechanism.
* Eliminates the need for court intervention for minor infringements, such as procedural lapses in the cosmetics industry.
**Impact Analysis**
**Businesses and the Cosmetics Industry**
**Impact:**
Businesses benefit from a more conducive ecosystem with reduced litigation and the removal of the threat of imprisonment for minor procedural lapses, such as failing to maintain statutory records.
**Action Required:**
Businesses must ensure compliance with updated financial penalty structures and utilize the new civil adjudication and appellate mechanisms for resolving minor infringements.
**Healthcare Professionals and Clinical Establishments**
**Impact:**
Stakeholders face a more predictable regulatory environment where non-compliance that does not risk patient safety is addressed through monetary penalties rather than criminal prosecution.
**Action Required:**
Establishments must maintain professional standards and regulatory requirements to avoid increased financial penalties.
**Central and State Governments / Regulatory Authorities**
**Impact:**
Regulatory authorities transition to a "whole-of-government" approach, requiring the management of a harmonized civil penalty framework instead of relying solely on court-based enforcement.
**Action Required:**
Governments must appoint adjudicating authorities and establish the necessary administrative infrastructure to handle notices, hearings, and appeals.
**Judiciary**
**Impact:**
The burden on the court system is significantly reduced as minor compliance issues and procedural violations are diverted to civil adjudication.
**Action Required:**
No direct action mentioned, though the system will see a reduction in layers of litigation for minor health-sector offenses.
Key Entities Referenced
Jan Vishwas (Amendment of Provisions) Bill, 2026: The primary legislation aimed at rationalizing compliance and decriminalizing minor offences across 79 Central Acts to enhance Ease of Doing Business and Ease of Living.
Drugs and Cosmetics Act, 1940: A key health sector law amended by the Bill to replace imprisonment with financial penalties and introduce a structured adjudication mechanism for minor violations.
Pharmacy Act, 1948: Legislation amended to modernize penalty provisions and enhance accountability through increased financial penalties for non-compliance.
Food Safety and Standards Act, 2006: Act streamlined under the Bill to ensure penalties are proportionate to the nature of the offence while maintaining regulatory oversight.
Clinical Establishments (Registration and Regulation) Act, 2010: Legislation updated to emphasize monetary penalties over criminal proceedings for non-compliance cases not posing immediate risks to patient safety.
Ministry of Health and Family Welfare
Jan Vishwas (Amendment of Provisions) Bill,
2026: Rationalizing Compliance and
Decriminalizing Minor Offences in the Health
Sector
Boost to Ease of Doing Business through Decriminalization
and Simplified Compliance
Adjudication Mechanisms Introduced to Reduce litigation
burden
Posted On: 03 APR 2026 5:41PM by PIB Delhi
The Jan Vishwas (Amendment of Provisions) Bill, 2026 has been passed by both Houses of Parliament,
marking a significant step towards further enhancing Ease of Doing Business and Ease of Living in the
country. The Bill reflects the Government’s commitment to fostering a trust-based governance framework
and ensuring proportionate regulation by reducing the compliance burden on individuals and businesses.
As per the provisions of the Bill, 784 provisions across 79 Central Acts administered by 23 Ministries
have been amended. Of these, 717 provisions have been decriminalized to promote Ease of Doing
Business, while 67 provisions have been amended to facilitate Ease of Living. Overall, the Bill seeks to
rationalize more than 1,000 offences by removing minor offences, thereby improving the regulatory
environment and enabling a more conducive ecosystem for businesses and citizens alike.
Within the health sector, the amendments span key legislations including the Drugs and Cosmetics Act,
1940; the Pharmacy Act, 1948; the Food Safety and Standards Act; the Clinical Establishments
(Registration and Regulation) Act, 2010; and the National Commission for Allied and Healthcare
Professions Act, 2021. These reforms align with the broader objective of simplifying compliance while
maintaining robust safeguards for public health.
A central feature of these reforms is the replacement of criminal penalties, particularly imprisonment for
minor procedural violations, with graded monetary penalties. This marks a shift towards a more
facilitative regulatory framework while retaining strict action for serious violations affecting public health
and safety.
In the Drugs and Cosmetics Act, 1940, several provisions have been amended to substitute imprisonment
with financial penalties and to introduce a structured adjudication mechanism. Notably, an adjudication
mechanism has been introduced for violations under Section 27A(ii) and Section 28A. This ensures that
minor violations in the case of cosmetics (other than spurious or adulterated) will not require court
intervention and can instead be addressed through a civil penalty framework.Further, violations such as non-maintenance of documents or non-submission of information, which were
earlier punishable through court-imposed fines or imprisonment, can now be adjudicated through this civil
penalty mechanism. For the first time, the Act provides for the appointment of adjudicating authorities by
the Central Government and State Governments, along with a defined process involving issuance of show
cause notices, provision for personal hearing, and an appellate mechanism.
This reform will significantly reduce the burden on courts, minimize layers of litigation and enable faster
resolution of minor compliance issues. It will particularly benefit the cosmetics industry by allowing
structured and predictable handling of minor infringements, including procedural lapses such as non-
maintenance of statutory records or documents, which are now free from prolonged litigation.
Similarly, amendments to the Pharmacy Act, 1948 aim to modernize penalty provisions and enhance
accountability through increased financial penalties for non-compliance. The reforms also ensure
alignment with updated legal frameworks.
Under the Food Safety and Standards Act, 2006, provisions have been streamlined to strengthen
enforcement while ensuring that penalties are proportionate to the nature of the offence. This supports a
balanced approach between regulatory oversight and ease of compliance.
The Clinical Establishments (Registration and Regulation) Act, 2010 has been updated to emphasize
monetary penalties for non-compliance, particularly in cases where deficiencies do not pose immediate
risks to patient safety. This encourages corrective action without resorting to criminal proceedings.
Further, the National Commission for Allied and Healthcare Professions Act, 2021 has been strengthened
to ensure compliance with professional standards and regulatory requirements, with penalties designed to
deter violations while maintaining proportionality.
The alignment of these reforms across multiple health-related legislations reflects a coherent policy
approach aimed at harmonizing regulatory frameworks. By standardizing the shift from criminal penalties
to civil penalties and introducing adjudication mechanisms, the amendments ensure consistency,
predictability and proportionality in enforcement. This alignment reduces regulatory fragmentation,
simplifies compliance requirements and provides clarity to stakeholders operating across different
segments of the health sector.
The involvement of 23 Ministries in implementing these reforms underscores a whole-of-government
approach towards improving the regulatory ecosystem. This broad-based participation reflects the
Government’s strong resolve to advance Ease of Doing Business and Ease of Living across sectors,
ensuring that reforms are comprehensive, coordinated and impactful.
Overall, these measures are expected to improve compliance, reduce litigation and build greater trust
between stakeholders and regulatory authorities, while continuing to safeguard public health and public
interest.
*****
SR
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