The finance ministry on Wednesday proposed to decriminalise minor offences, including those relating to cheque bounce and repayment of loans, in as many as 19 legislations.
Decriminalisation of minor offences ịn 19 economic legislations, as proposed by the finance ministry, will provide relief to the MSMEs reeling under the impact of COVID-19, improve ease of doing business and reduce burden on NCLT, according to experts. However, some experts believe that the move will dilute legal remedies available to lenders to recover their legitimate dues from borrowers.
The finance ministry on Wednesday proposed to decriminalise minor offences, including those relating to cheque bounce and repayment of loans, in as many as 19 legislations.
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The legislations identified for amendments include Negotiable Instruments Act, SARFAESI Act, LIC Act, PFRDA Act, RBI Act, NHB Act, Banking Regulation Act, Chit Funds Act, Insurance Act, Payment and Settlements Systems Act, NABARD Act, among others.
“The decriminalisation measures need to be viewed from three different perspectives- ease of doing business; relief to beleaguered MSMEs and companies affected by lockdown and COVID-19; and easing the stress on the National Company Law Tribunal (NCLT),” said Atul Pandey, Partner, Khaitan & Co.
Source: Economic Times
