The Finance Ministry has proposed to decriminalise a host of minor offences, including those relating to cheque bounce and repayment of loans, in as many as 19 legislations to help businesses tide over the crisis caused by the coronavirus outbreak.
Thus a cheque dishonoured due to insufficient money in the bank may no longer attract a jail term. Legislations include Negotiable Instruments Act (cheque bounce), SARFAESI Act (repayment of bank loans), LIC Act, PFRDA Act, RBI Act, NHB Act, Banking Regulation Act and Chit Funds Act.
Actions taken for decriminalisation of minor offences are expected to go a long way in improving ease of doing business and helping unclog the court system and prisons," the Finance Ministry said while inviting comments of stakeholders by June 23 on 19 legislations.
However, according to Sumit Batra, partner at India Law Alliance. while the proposal to decriminalize minor offences is likely to provide relief to foreign investors for whom criminal liability for economic offences is a big concern, it will have a negative impact on creditors who will have to wait longer to recover their legitimate dues,
