Gujarat to bring in ordinance to ease biz

Gandhinagar: Gujarat is all set to roll out a new ordinance that will make it easier for businesses to operate without getting caught up in legal hassles, said govt sources close to the development. With no upcoming assembly session for the next six months, the state is likely to use the ordinance route to implement the Jan Vishwas Act. This move aims to decriminalise minor offences in industries and simplify outdated rules. The ultimate goal: improve ease of doing business, boost investor confidence, and speed up approvals.
"Inspired by the Centre's Jan Vishwas Act passed in 2023, the ordinance is being prepared by the state's industries and mines department, in consultation with other departments. The initiative aims to amend various laws to align with the new Jan Vishwas legislation, facilitating business operations by eliminating procedural hindrances in Gujarat," said a source in the know, adding: "It was determined in the last chintan shibir that a new legislation will be established to boost employment activities."

Various departments have been instructed to identify dispensable rules. A senior govt official, refusing to be named, said, "The idea is to cut red tape, remove fear of legal troubles for minor mistakes, and encourage investment. For example, rules under the Boiler Act, penalties for unpaid electricity bills, and strict action for unused industrial land could be softened or scrapped."
The official disclosed that the government is considering removing criminal proceedings against companies for fire incidents. "There are instances which have led to criminal cases against company heads, even those not present in the country when accidents occurred," the official said.
Minor violations under food safety and environment protection laws are also being reviewed, said the sources, adding, "The Gujarat Provincial Municipal Corporations Act may be relaxed for minor violations like littering."
"The aim is to create a more practical and business-friendly legal system that suits today's fast-changing business environment. By doing so, the government hopes to save both administrative and judicial time and reduce unnecessary legal pressure on entrepreneurs," the sources further said.
The ordinance will largely mirror the Union government's Jan Vishwas Act, which was passed by the Lok Sabha on July 27, 2023, and the Rajya Sabha on Aug 2, 2023. It received presidential approval on Aug 11, 2023. The state's draft shall align with the Act that made 183 minor offences non-criminal across 42 laws from 19 central ministries. That Act replaced jail terms with civil fines and was designed to build trust between the government and businesses.
MSID:: 120020011 413 |
Gandhinagar: Gujarat is all set to roll out a new ordinance that will make it easier for businesses to operate without getting caught up in legal hassles, said govt sources close to the development. With no upcoming assembly session for the next six months, the state is likely to use the ordinance route to implement the Jan Vishwas Act. This move aims to decriminalise minor offences in industries and simplify outdated rules. The ultimate goal: improve ease of doing business, boost investor confidence, and speed up approvals.
"Inspired by the Centre's Jan Vishwas Act passed in 2023, the ordinance is being prepared by the state's industries and mines department, in consultation with other departments. The initiative aims to amend various laws to align with the new Jan Vishwas legislation, facilitating business operations by eliminating procedural hindrances in Gujarat," said a source in the know, adding: "It was determined in the last chintan shibir that a new legislation will be established to boost employment activities."
Various departments have been instructed to identify dispensable rules. A senior govt official, refusing to be named, said, "The idea is to cut red tape, remove fear of legal troubles for minor mistakes, and encourage investment. For example, rules under the Boiler Act, penalties for unpaid electricity bills, and strict action for unused industrial land could be softened or scrapped."
The official disclosed that the government is considering removing criminal proceedings against companies for fire incidents. "There are instances which have led to criminal cases against company heads, even those not present in the country when accidents occurred," the official said.
Minor violations under food safety and environment protection laws are also being reviewed, said the sources, adding, "The Gujarat Provincial Municipal Corporations Act may be relaxed for minor violations like littering."
"The aim is to create a more practical and business-friendly legal system that suits today's fast-changing business environment. By doing so, the government hopes to save both administrative and judicial time and reduce unnecessary legal pressure on entrepreneurs," the sources further said.
The ordinance will largely mirror the Union government's Jan Vishwas Act, which was passed by the Lok Sabha on July 27, 2023, and the Rajya Sabha on Aug 2, 2023. It received presidential approval on Aug 11, 2023. The state's draft shall align with the Act that made 183 minor offences non-criminal across 42 laws from 19 central ministries. That Act replaced jail terms with civil fines and was designed to build trust between the government and businesses.
MSID:: 120020011 413 |