The objective behind enacting the Jan Vishwas (Amendment of Provisions) Act, 2023 (“Amendment Act”) by the Government of India is to decriminalize and rationalize the offences to further enhance trust-based governance for ease of living and doing business. To reduce the compliance burden on individuals and businesses, the Government took the initiative to reform the archaic rules and regulations that were causing trust deficit amongst the general public and entrepreneurs.
It is essential to highlight and analye the reforms made by the Amendment Act under the Legal Metrology Act, 2009 (“Act”) particularly with respect to decriminalizing certain offences under the Act.
Overview and Relevance of the Act
The Government of India enacted the Act to maintain uniformity and establish certain standards in terms of weights, measures, and labelling requirements for the purposes of regulating trade and commerce in India. With the advent of technology and changes in the socio-economic scenario, the process of buying and selling goods and services through e-commerce platforms increased exponentially, especially during Covid-19 pandemic. As a result, fraudulent activities by the sellers also increased proportionately, wherein, consumers were being sold substandard products without proper description of manufacturing and details pertaining to country of origin. In light of the above, the Government introduced certain amendments under the Act thereby safeguarding the interests of the consumers and prevent unfair trade practices.
Key Developments
Recently, the Government of India by way of the Amendment Act, decriminalized certain offences and revised various fines and penalties under the Act. The intention of the legislature behind introducing such reforms was to ensure not only a hassle-free and seamless service delivery to the ultimate beneficiary but also eradicate the fear of criminal provisions for minor, technical, and procedural defaults amongst budding entrepreneurs.
For ease of reference, in the below mentioned table, the changes brought about by the Amendment Act to the provisions under the Act have been highlighted.
Amended Section | Provision (Before) | Provision (After) |
Section 25- Penalty for use of non-standard weight or measure | Whoever uses or keeps for use any non-standard weight or measure shall be punished with fine which may extend to twenty-five thousand rupees and for the second or subsequent offence, with imprisonment for a term which may extend to six months and also with fine. | Whoever uses or keeps for use any non-standard weight or measure shall be punished with fine which may extend to one lakh rupees and for the second offence with fine which may extend to two lakh rupees and for the third and subsequent offence, with fine which may extend to five lakh rupees. |
Section 27- Penalty for manufacture or sale of non-standard weight or measure | Every person who manufactures or causes to be manufactured or sells or offers, exposes, or possesses for sale, any weight or measure which is of non-standard weight or measure shall be punished with a fine which may extend to twenty thousand rupees and for the second or subsequent offence with imprisonment for a term which may extend to three years or with fine or with both. | Every person who manufactures or causes to be manufactured or sells or offers, exposes, or possesses for sale, any weight or measure which is of non-standard weight or measure shall be punished with a fine which may extend to one lakh rupees and for the second offence with fine which may extend to two lakh rupees and for the third and subsequent offence, with fine which may extend to four lakh rupees. |
Section 28- Penalty for making any transaction, deal or contract in contravention of the prescribed standards | Whoever makes any transaction, deal, or contract in contravention of the standards of weights and measures specified under Section 10 (Use of weight or measure for particular purposes) shall be punished with fine which may extend to ten thousand rupees and for the second or subsequent offence, with imprisonment for a term which may extend to one year, or with fine, or with both | Whoever makes any transaction, deal, or contract in contravention of the standards of weights and measures specified under Section 10 (Use of weight or measure for particular purposes) shall be punished with fine which may extend to fifty thousand rupees and for the second offence with fine which may extend to one lakh rupees and for the third and subsequent offence with fine which may extend to two lakh rupees. |
Section 29- Penalty for quoting or publishing, etc., of non-standard units | Whoever violates Section 11 (Prohibition of quotation, etc., otherwise than in terms of standard units of weight, measure, or numeration) shall be punished with fine which may extend to ten thousand rupees and, for the second or subsequent offence, with imprisonment for a term which may extend to one year, or with fine, or with both. | Whoever violates Section 11 (Prohibition of quotation, etc., otherwise than in terms of standard units of weight, measure, or numeration) shall be punished with fine which may extend to fifty thousand rupees for the second offence with fine which may extend to one lakh rupees and for the third and subsequent offence with a fine which may extend to two lakh rupees. |
Section 31- Penalty for non-production of documents | Whoever, being required by or under this Act or the rules made thereunder to submit returns, maintain any record or register, or being required by the Director or the Controller or any legal metrology officer to produce before him for inspection any weight or measure or any document, register or other record relating thereto, omits or fails without any reasonable excuse, so to do, shall be punished with fine which may extend to five thousand rupees and for the second or subsequent offence, with imprisonment for a term which may extend to one year and also with fine. | Whoever, being required by or under this Act or the rules made thereunder to submit returns, maintain any record or register, or being required by the Director or the Controller or any legal metrology officer to produce before him for inspection any weight or measure or any document, register or other record relating thereto, omits or fails without any reasonable excuse, so to do, shall be punished with fine which may extend to twenty-five thousand rupees and for the second offence with fine which may extend to fifty thousand rupees and for the third and subsequent offence, with fine which may extend to one lakh rupees. |
Section 34- Penalty for sale or delivery of commodities, etc., by non-standard weight or measure | Whoever sells, or causes to be sold, delivers, or causes to be delivered, any commodity, article or thing by any means other than the standard weight or measure or number, shall be punished with fine which shall not be less than two thousand rupees but which may extend to five thousand rupees and, for the second or subsequent offence, with imprisonment for a term which shall not be less than three months but which may extend to one year, or with fine, or with both | Whoever sells, or causes to be sold, delivers, or causes to be delivered, any commodity, article or thing by any means other than the standard weight or measure or number, shall be punished with fine which may extend to twenty-five thousand rupees and for the second offence with fine which may extend to fifty thousand rupees and for the third and subsequent offence, with fine which may extend to one lakh rupees. |
Section 35- Penalty for rendering services by non-standard weight, measure or number | Whoever renders or causes to be rendered, any service through means other than the weight or measure or numeration or in terms of any weight, measure or number other than the standard weight or measure, shall be punished with fine which shall not be less than two thousand rupees but which may extend to five thousand rupees and for the second or subsequent offence, with imprisonment for a term which shall not be less than three months but which may extend to one year, or with fine, or with both. | Whoever renders or causes to be rendered, any service through means other than the weight or measure or numeration or in terms of any weight, measure or number other than the standard weight or measure, shall be punished with fine which may extend to twenty-five thousand rupees and for the second offence with fine which may extend to fifty thousand rupees and for the third and subsequent offence, with fine which may extend to one lakh rupees. |
Analysis
In light of the changes brought about by the Amendment Act, it is interesting to note that as an effective deterrent, the quantum of fines levied on non-complying with the provisions under the Act have been increased. This has been done with the aim of promoting transparency on the part of the manufacturer, producer, retailer, dealer, etc. to make appropriate declarations on the products/commodities as required under the Act to be sold to the consumers.
The conscious efforts taken by the Indian Government to identify offences of minor nature and decriminalize them with monetary penalties will inevitably not only help boost the economy comprising of micro, small and medium sized enterprises but also reduce the judicial burden. The amendments under the Act to decriminalize the minor offences have been made basis the following principles largely: (i) offences where mens rea (malafide/criminal intent) is absent; and (ii) offences where the larger public interest is not affected adversely.
With the advent of technology and changes in the socioeconomic scenario, it is necessary for the nation to liberate the entrepreneurial spirit of its citizens to instill confidence and take a step forward towards the expanding and vibrant economy thereby, making India the most preferred global investment destination by boosting investor sentiments, locally as well as globally.
Lastly, significant rise in the amount of the fines being imposed for violation and non-compliance of the provisions under the Act would act as an impetus for the key stakeholders to duly comply with the provisions of the Act thus, ensuring ease of doing business.
Authors: Guneet Mayall (Senior Associate) and Anirudh Agarwal (Associate) at Ahlawat and Associates. Views are personal.