The Lok Sabha on Monday approved a proposal to refer the Corporate Laws (Amendment) Bill, 2026, to a Joint Parliamentary Committee (JPC) for detailed examination.

The legislation was introduced in the lower house by finance minister Nirmala Sitharaman, who recommended that it be sent to the parliamentary panel to allow for wider scrutiny and stakeholder input.

The Bill seeks to amend key provisions of the Limited Liability Partnership Act, 2008 and the Companies Act, 2013. Its primary objective is to improve the ease of doing business by simplifying regulatory requirements, decriminalising minor offences and replacing certain criminal liabilities with civil penalties. It also aims to reduce compliance burdens for smaller enterprises, start-ups and farmer-led producer companies.

However, the move faced opposition from several members across parties. Lawmakers including Manish Tewari, Sougata Ray and T. Sumathy expressed concerns that the proposed amendments could weaken provisions related to Corporate Social Responsibility (CSR).

Responding to the criticism, Sitharaman said the reforms are intended to strengthen corporate governance while making India a more attractive destination for investment. She emphasised that the Bill had been developed after extensive consultations over a two-year period, involving industry bodies, professional institutions and legal experts.

The proposed amendments draw on recommendations made by the Company Law Committee, which was set up by the government to review corporate regulations and enhance the business environment. Its findings were subsequently examined by a high-level panel on regulatory reforms before being incorporated into the Bill.

The government has maintained that the changes are part of a broader effort to streamline non-financial regulations and promote economic growth, while balancing oversight with ease of compliance.

The Joint Parliamentary Committee is now expected to review the Bill in detail before it is taken up again in Parliament for further consideration.

With IANS inputs