The Ministry of Corporate Affairs (“MCA”) has issued a statement dated June 19, 2020 with regard to the decriminalization of compoundable offences under the Limited Liability Partnership Act, 2008 (“Act”).
With a view to provide greater ease of doing business in India to law abiding Limited Liability Partnerships (“LLPs”), the MCA has decided to review the penal provisions of the Act to decriminalise compoundable offences involving minor, procedural or technical violations of the Act, or offences which may not involve any harm to public interest.
In the statement, the MCA recognizes that criminalisation of minor violations acts as an avoidable deterrent and the fact that it has a negative impact upon the business sentiments.
The exercise to identify and decriminalize the provisions of Act is aimed at incentivizing compliance, de-clogging of criminal justice system and promoting congenial business climate. In light of the importance of this exercise as well as the large-scale impact it will have, the Government of India has decided to conduct a stakeholder consultation exercise.
The statement lists out the relevant sections and current punishment under the Act as on date and has requested stakeholders to submit their suggestions & comments on the de-criminalization of the same to MCA.
All comments/ suggestions must be submitted to the MCA at the email address LLP.suggestions@mca.gov.in by July 4, 2020 in the format as per the statement issued by MCA.
Source: Ministry of Corporate Affairs
