Blitz Bureau
NEW DELHI:A Niti Aayog panel has proposed a sweeping overhaul of the nation's regulatory framework. The high-level committee, led by Niti Aayog member and former Cabinet secretary Rajiv Gauba, has recommended scrapping licences, permits and no- objection certificates (NOCs), ending "inspector raj", and shifting routine inspections to accredited third parties, according to a report in MoneyControl. The panel has also called for stable policies and tax regimes, and for every regulation to be assessed for its compliance cost to businesses and enforcement burden on the Government, according to the report of the high-level committee on Non-Financial Regulatory Reform. The high-level committee’s proposals make up the so-called Jan Vishwas Siddhant, a trust-based approach to regulation. The key recommendations of the panel include: Licencing
Licensing and compliance requirements shall be proportionate and graded by risk. Prior approvals in the form of licence, permit, NOC, etc., shall be required only for reasons of national security, serious harm to public safety, human health, or environment or significant public interest, and only as provided under the statute. Any activity not explicitly prohibited under the law shall be exempt from prior permission. Registration Registration may be required for maintenance of databases or other important purposes. Registrations shall not be subject to approvals or rejections. Self- registration based on minimal documentation shall be the norm. No inspector raj Inspection should be based on computer-assisted randomised selection and risk assessment. Inspections shall be conducted by accredited third parties, as a norm. Selection and periodic performance assessment criteria for third parties shall be put in place and published. No sudden changes in policy There shall be a fixed calendar for regulatory updates, i.e changes / amendments shall be introduced on a fixed date every year unless deemed necessary for compelling reasons. New regulations and amendments shall be implemented after meaningful consultations with all stakeholders and with adequate lead time. Regulatory impact assessment Existing and future regulations shall be subject to an assessment of the cost of compliance for businesses and the cost of enforcement to the government. To facilitate this, a Regulatory Impact Assessment Framework with implementation timelines will be put in place. Penal provisions Criminal punishments for minor, procedural / technical offences shall be decriminalised. Criminal punishments (imprisonment or fine) shall be imposed only for serious offences involving a threat to national security or public order, or to human health; fraud; serious harm to the environment; or other acts of omission or commission that can result in non-compensable externalities. Digital compliance framework All filings related to regulatory compliance shall be digitally enabled. Interoperability shall be ensured at the ministry level so that information once submitted is not required to be filed again.