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June 29, 2026 12:57 PM IST

ease of doing business | Ministry of Consumer Affairs Food and Public Distribution | Improvement notice mechanism | Legal Metrology Act

Centre introduces Improvement Notice mechanism under Legal Metrology Act to boost ease of doing business

The Department of Consumer Affairs has introduced a significant reform under the Legal Metrology Act, 2009 by bringing in an Improvement Notice mechanism, allowing businesses to rectify specified first-time procedural and regulatory lapses before facing penal action. The move, introduced through the Jan Vishwas (Amendment of Provisions) Act, 2026, is aimed at promoting ease of doing business, encouraging voluntary compliance and reducing unnecessary litigation, while maintaining robust consumer protection.

The new framework marks a shift towards a more trust-based regulatory regime by giving manufacturers, importers, packers, dealers, repairers, traders, MSMEs and other regulated entities an opportunity to correct genuine first-time compliance errors instead of immediately facing penalties.

Trust-Based Compliance Framework

Under the new mechanism, a Legal Metrology Officer may issue an Improvement Notice when a regulated entity commits a specified first-time procedural or regulatory non-compliance covered under the Legal Metrology Act. The notice will identify the deficiency and provide reasonable time for corrective action.

If the entity rectifies the lapse within the prescribed period, penal proceedings can be avoided. However, failure to comply with the notice or repeated violations will continue to invite action under the provisions of the Legal Metrology Act.

The Department said the reform is intended to create a more facilitative regulatory environment by encouraging voluntary compliance without compromising enforcement standards.

Boost to Ease of Doing Business

The Improvement Notice mechanism is expected to make India’s regulatory environment more predictable, transparent and business-friendly.

According to the Department, the reform will encourage timely self-correction, provide businesses with an opportunity to rectify genuine first-time procedural lapses before penalties are imposed, reduce litigation arising from inadvertent compliance errors, lower compliance costs and improve regulatory certainty.

The move will also enable enforcement authorities to focus their efforts on deliberate violations, repeated non-compliance and activities that adversely affect consumer interests.

Wide Coverage Across Regulated Businesses

The mechanism applies to a broad range of regulated entities, including manufacturers, importers, dealers, repairers, traders and MSMEs operating under the Legal Metrology framework.

It covers specified first-time procedural and regulatory non-compliances relating to registration requirements, documentation and record maintenance, model approval, manufacture, sale and repair of weights and measures, import of weights and measures, transactions involving packaged commodities, and submission of statutory information and returns.

The provisions covered include several sections of the Legal Metrology Act dealing with the use and manufacture of non-standard weights and measures, transactions violating prescribed standards, model approvals, import regulations, registration requirements, statutory disclosures and related compliance obligations.

Consumer Protection Remains Uncompromised

The Department has clarified that the reform does not dilute consumer protection or weaken enforcement under the Legal Metrology Act.

Strict action will continue against fraud, tampering, repeated violations and other deliberate acts that adversely affect consumer interests. The Improvement Notice mechanism is applicable only to specified first-time procedural and regulatory non-compliances and is not intended to shield wilful offenders.

Advancing Governance Reforms

The introduction of the Improvement Notice mechanism reflects the Government’s broader vision of “Minimum Government, Maximum Governance” by reducing unnecessary compliance burdens while strengthening trust-based regulation.

By balancing facilitation with accountability, the reform seeks to support honest businesses in achieving compliance, improve regulatory efficiency and preserve the integrity of India’s legal metrology system. Officials believe the initiative will contribute to a more transparent, predictable and business-friendly regulatory ecosystem while continuing to safeguard consumer interests.

Last updated on: 29th June 2026

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