
Lawyered.in
24 Jul 2020
The Central government has recently proposed the reclassification and decriminalization of offences under various legislations with a view to improving business sentiment and unclogging court processes. The Circular dated 08.06.2020 issued by the Ministry of Finance lists out penal provisions under 19 different legislations. It also mentions that the following principles are to be kept in mind when deciding on the reclassification of such offences
The Central government has recently proposed the reclassification and decriminalization of offences under various legislations with a view to improving business sentiment and unclogging court processes. The Circular dated 08.06.2020 issued by the Ministry of Finance lists out penal provisions under 19 different legislations. It also mentions that the following principles are to be kept in mind when deciding on the reclassification of such offences.
Decrease the burden on businesses and inspire confidence amongst investors:
Focus on economic growth, public interest and national security should remain paramount;
Mens rea (malafide/ criminal intent) plays an important role in the imposition of criminal liability, therefore, it is critical to evaluate nature of non-compliance, i.e. fraud as compared to negligence or inadvertent omission; and
The habitual nature of non-compliance
The circular is a part of the stake holder consultation exercise, whereby the comments of State Governments/ UT Administrations, Civil Society/ Non-Government Organizations, Academicians, Public and Private Sector Organizations, Multilateral Institutions and members of the public are invited.
Categories of Offences:
A critical analysis of the nature of the offences that have been listed reveals that it can be broadly classified into three categories of offences,
Contravention/ Non-Compliances of mandated regulations
Willfully furnishing statements which are false in material particulars
Other minor offences including Section 138, Negotiable Instruments Act (NIA).