THE JAN VISHWAS ACT-- Editorial THE JAN VISHWAS ACT The Indian Parliament had passed the Jan Vishwas (Amendment of Provisions) Bill, 2023 to remove stringent punishments such as imprisonment from some of the provisions of the Drugs and Cosmetics Act, 1940 and the Pharmacy Act, 1948. The Bill was first introduced in Lok Sabha on December 22, 2022. Subsequently, it was referred to the Joint Committee of Parliament, which submitted its report in March, 2023. The Bill was passed in the Lok Sabha in June 2023, after which it came up to the Rajya Sabha, which passed the Bill on August 2, 2023. Quite in line with the changing times, the new Bill had a few provisions where the imprisonment will be substituted with provisions for penalty. Based on the new provisions, some of the offences including manufacturing of drugs in contravention of the provisions, but not adulterated or spurious under Section 27, and any cosmetic other than spurious, but in contravention of any provisions of the chapter or any other rules, will be compounded by the Central or the State government. Similarly, under the Pharmacy Act, 1948, one of the amendments is to remove provisions for imprisonment for six months or fine of one thousand rupees or both, to penalty up to Rs. 1 lakh under Section 26A. Of course, this was a legislation for which the genuine manufacturers have been clamouring for a long time. The removal of stringent punishments such as imprisonment from some of the provisions of the Drugs and Cosmetics Act, 1940 and the Pharmacy Act, 1948 has definitely infused confidence among the genuine manufacturers and investors. With the decriminalisation of some of the provisions in the Drugs and Cosmetics Act, the industry in fact heaved a sigh of relief as there would be no fear of imprisonment on frivolous grounds. But the industry is yet to get the benefit of the Jan Vishwas Act as the amendments introduced through the Act remain largely inaccessible to stakeholders due to pending finalization of procedural rules and appointments of compounding authorities. Though the government had released the draft rules on July 10, 2024 proposing comprehensive procedures for compounding offences, the government is yet to come out with final notification. The amendments to Section 29, Section 30, and Section 32B of the Drugs and Cosmetics Act, which have already come into effect from December 31, 2024, introduced the provision for compounding of offences. This move was expected to reduce litigation burdens, foster compliance, and enhance ease of doing business in the pharmaceutical and cosmetics sectors. But, the procedural framework required to operationalize these amendments still remains un-notified. There can be no two opinions about the fact that the amendments and draft rules reflect progressive thinking by the government, aiming to strike a balance between regulatory enforcement and industry-friendly measures. Besides decriminalisation of minor offences, the new Bill envisages the rationalisation of monetary penalties, depending on the gravity of the offence, bolstering trust-based governance. No doubt, the Bill will promote ease of doing business by decriminalising a number of provisions. Of course, the new Act was music to the ears of the pharma entrepreneurs and investors as the fear of imprisonment, which has been a major deterrent, will now be a thing of the past. The government deserves kudos for passing this Bill in Parliament. But, the lack of final notification of these rules and appointment of compounding authorities have left the stakeholders in the lurch. For ease of doing business, it is imperative that the Central and State governments act swiftly to finalize the rules and notify the compounding authorities. Without this, the intended benefits of the Jan Vishwas Act cannot be realized. for more information. visit acplgroupindia.co.in call-9266665201 email-info@acplgroupindia.co.in