The Union Cabinet has approved 72 changes amending 65 sections of the Companies Act in order to decriminalise these sections, Finance Minister Nirmala Sitharaman said.
Sitharaman said 33 offences categorised out of 66 compoundable offences to be fit for in-house adjudication.
The Cabinet limited punishment for 11 compoundable offences to fines while removing imprisonment. It also removed seven compoundable offences.
The law has become more humane now, Sitharaman said.
Industry welcomes the move
Industry body CII on Wednesday said the proposed amendments to the companies law will further provide ease of doing business for corporates and de-clog the criminal justice system in the country.
"The proposed amendments certainly further provide ease of living for law-abiding corporates and de-clog the criminal justice system in the country. Importantly, it establishes the trust factor in business and industry that is essential for a healthy ecosystem," the chamber said in a statement.
It said CII has earlier submitted various representations to the government for decriminalising of business and economic legislations, including the Companies Act 2013.