What are the key amendments proposed?
Decreminalization off offences:
1. The bill seeks to decriminalise 12 offences under LLPs. Currently, there are 24 penal provisions in the LLP Act, 21 compoundable offences, and 3non-compoundable offences. After the amendments, the penal provisions will be cut to 22 with compoundable offences reduced to 7 and non-compoundable offences will remain the same.
2. The decriminalized cases will be shifted to an “In-house Adjudication Mechanism” (IAM) which would help reduce the burden of criminal courts.
3.The bill seeks to encourage the startup ecosystem by decriminalising certain offences, special courts for speedy trial of offences, and increases the punishment for fraud as the government wants reward the law-abiding businesses and discourage wrong practices.
Author: CS Sanjay H. Indulkar