Reduction of Compliance Burden Report; 46 penal provisions under Companies Act decriminalized

New Delhi, Sept 28 (KNN) To reduce compliance burden and improve investors' confidence, Government of India has focused on decriminalization of minor offenses removing fear of prosecution for law abiding corporates with 46 penal provisions of the Companies Act 2013 decriminalized.

In-house adjudication mechanism under civil proceedings is proposed as an alternative giving a boost to investor confidence reflected in a spurt in registration of companies with more than 1,55,000 companies incorporated in country in 2020-21, which is 27 increase in compared to 2019-20.

A detailed report on 'Reduction of Compliance Burden' prepared by Department of Promotion of Industry and Internal trade (DPIIT) was released today by Piyush Goyal Minister for Commerce and industry and Textiles in presence of Ministers of States Anupriya Patel and Som Prakash.

Both at Central and State level, total 22,258 compliances related to Central Ministries and States and UTs have either been simplified, digitized, decriminalized or made redundant altogether.

Following up the call of "Ease of Living" by Prime Minister Narendra Modi on 15th Aug 2019, the DPIIT was mas the nodal Ministry for coordinating the exercise of minimizing compliance burden for citizens and businesses.

'To reduce burdensome compliances, Central Ministries, departments, States and Union Territories carried out a comprehensive exercise to analyse all acts, rules, regulations, notifications, along with schemes subsidies grants, etc. administered by them', the reports notes.

The compliances burden has been reduced through a systemic approach: first every ministry Department and the State / UT was asked to conduct a comprehensive review of compliances under their purview to understand their relevance and rationale and then undertake a complete process of arranging to eliminate burdensome compliances through removal of unnecessary licenses certifications and permissions, introduction of one time registrations, rationalization of renewals, extending their periodicity etc.