Jan Vishwas Act 2026 And ADR Reforms In India
Source: PIB
GS II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Overview
- India is moving towards a more facilitative and proportionate regulatory framework by reducing criminalisation of minor violations, strengthening Alternate Dispute Resolution (ADR) and improving judicial infrastructure.
- The Jan Vishwas reforms seek to reduce compliance burdens, while arbitration and mediation mechanisms aim to provide faster and less adversarial dispute resolution.
- Together, these measures seek to improve ease of doing business, access to justice, investor confidence and efficiency of governance.
Why in the News?
The Ministry of Law and Justice highlighted the progress of legislative reforms, ease of doing business and strengthening of Alternate Dispute Resolution (ADR) mechanisms.
News in Brief
- The government is undertaking continuous legislative and policy reforms to keep the regulatory framework aligned with the changing needs of stakeholders.
- The reform process seeks to make laws more balanced and practical by reviewing existing provisions and addressing unnecessary criminalization of minor violations.
- A key focus is to promote ease of doing business through proportionate penalties and simpler administrative mechanisms.
Jan Vishwas – Decriminalisation of Minor Offences
- The reform seeks to move from a compliance-heavy regulatory system towards facilitation-driven governance.
- The Jan Vishwas (Amendment of Provisions) Act, 2023 initiated the broader process of removing criminal penalties for several minor offences.
The Jan Vishwas (Amendment of Provisions) Act, 2026
- Amends 79 Central Acts across 23 ministries. It decriminalizes 717 out of 784 targeted provisions.
- The reforms are aimed at promoting trust-based governance, reducing compliance burden, improving ease of doing business, and ensuring proportionate regulatory enforcement.
Objectives
- Trust-Based Governance- Moves away from a colonial-era, fear-driven compliance regime that criminalised simple paperwork mistakes or delayed filings.
- Judicial Relief- Alleviates burdens on Indian courts by shifting minor adjudication to designated administrative officers and appellate authorities rather than criminal trials.
- MSME Support- Protects small enterprises and entrepreneurs from harsh criminal prosecution for first-time or accidental technical errors.
Key Structural Changes
- Hundreds of provisions previously carrying jail time now mandate monetary civil penalties instead.
- Introduces warning or improvement notices for initial or minor infractions, penalising only persistent non-compliance.
- Outdated or redundant offences have been dropped entirely from the statute books.
Alternate Dispute Resolution – ADR
- Alternate Dispute Resolution (ADR) offers systematic ways to resolve legal conflicts outside traditional courts. It lowers court backlogs, cuts costs, and resolves issues faster.
Arbitration and Conciliation Act, 1996
- Governs domestic and international arbitration and conciliation
- 2015 Amendment- Set fast timelines for arbitral awards and restricted public policy challenges.
- 2019 Amendment- Created the Arbitration Council of India (ACI) to grade institutions and promote institutional arbitration.
- 2020 Amendment- Removed qualification requirements for arbitrators to open the field and ensured unconditional stay on awards if fraud or corruption is prima facie alleged.
Pre-Institution Mediation and Settlement (PIMS) Mechanism
- Introduced through the amendment of Commercial Courts Act, 2015.
- Under this mechanism, parties have to first exhaust mandatory remedy of PIMS before approaching the Court, if no urgent interim relief is needed.
- This is aimed at providing an opportunity to the parties to resolve the commercial disputes through mediation.
- This saves court time by filtering out disputes before formal litigation begins.
India International Arbitration Centre (IIAC) Act, 2019
- Enacted to provide for the establishment of the India International Arbitration Centre.
- Purpose – To create an independent, autonomous and world class body for facilitating institutional arbitration and to declare the Centre to be an institution of national importance.
- Aims to make India a global center for commercial arbitration.
Mediation Act, 2023
- Creates a standalone law for mediation processes.
- Makes mediated settlement agreements final, binding, and legally enforceable.
- Introduces community-level mediation to resolve local disputes before they escalate.
Ease Of Doing Business
- India’s regulatory reforms focus has gradually shifted from a compliance-heavy system to a facilitation-driven ecosystem.
- Reforms have aimed at enhancing speed, transparency, and trust-based governance across processes.
- This consecutively improved Ease of Doing Business and increased investor confidence in India’s business environment.
World Bank Doing Business Report 2020
- In the latest report, India ranked 63rd out of 190 economies.
- India had improved from 142nd position in 2014 to 63rd in 2019.
- However, the World Bank discontinued the Ease of Doing Business exercise in 2020.
Judicial Infrastructure and Case Pendency
- The Centrally Sponsored Scheme for Development of Infrastructure Facilities for District and Subordinate Courts aims to improve judicial infrastructure.
- The latest third-party evaluation highlighted:
- Districts with higher courtroom density reported a 3–8% decline in average case pendency.
- Case resolution time declined by 16%, from 3.1 years to 2.6 years in District Courts.
Challenges
- Lack of awareness and uneven adoption of ADR mechanisms.
- Need for stronger institutional arbitration infrastructure.
- Delays can persist even within arbitration and mediation.
- Judicial infrastructure remains uneven across districts.
- Rural and smaller districts lack modern judicial tools.
- Balancing decriminalisation with effective regulatory enforcement is important.
- Legal reforms need effective implementation at the ground level.
Conclusion
Legislative reforms should aim to create a balanced regulatory framework that protects public interest while reducing unnecessary compliance burdens.
A shift towards proportionate enforcement, trust-based governance and efficient dispute resolution can strengthen ease of doing business and improve the overall effectiveness of governance.
UPSC Prelims and Mains Practice Question
Consider the following statements:
- The Jan Vishwas (Amendment of Provisions) Act, 2026 rationalises provisions across 79 Central Acts.
- The Mediation Act, 2023 provides a standalone legislative framework for mediation.
- India International Arbitration Centre was established under the India International Arbitration Centre Act, 2019.
- The World Bank continues to publish the Doing Business Report annually.
Which of the statements given above are correct?
(a) 1, 2 and 3 only
(b) 1 and 4 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4
Answer – (a)
Mains Practice Question
Q. “India’s shift from compliance-heavy regulation towards trust-based governance, along with the expansion of ADR mechanisms, can improve both access to justice and the business environment.” Discuss. (250 Words)
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