
In what is called a decision to benefit the small business community, the Punjab government on Wednesday amended the Punjab Shop and Commercial Act 1958. Punjab Chief Minister Bhagwant Singh Mann informed the media about the latest labour law reforms after the cabinet meeting. CM Mann said that this amendment will free shopkeepers from the inspector raj. Now, shopkeepers will not have to give any account for keeping up to 20 helpers or employees. The new Punjab Shop and Commercial Act 1958 is aimed at reducing compliance burdens on 95 percent of small businesses and enhancing ease of doing business in the state.
Now, the question arises, what are the amendments that the Mann Government has introduced, and how will they benefit small businesses? Below is all you need to know-
Under the new system, businesses applying for registration will receive approval within 24 hours. If no response is received within that timeframe, the registration will be considered automatically approved. Inspectors will be allowed to visit premises only once every three months for checks.
Jalandhar Central Halka Incharge Nitin Kohli lauded the Bhagwant Mann Government for abolishing Inspector Raj in Punjab. Nitin Kohli said, "The Punjab Government has made a major decision that has brought huge relief to small businesses. There is a wave of happiness among the small business community. The Mann Government has officially ended Inspector Raj. I’m thankful to our supremo, Shri Arvind Kejriwal ji, and Punjab CM Shri Bhagwant Singh Mann ji for this bold move."
"This has been a long-standing demand of our small traders. Previously, inspectors would harass business owners daily, asking for different documents. Now, inspectors can visit only once every six months — either at the trader’s office or the trader may visit the inspector's office if required. The overtime limit has also been raised from 50 to 144 hours, and bigger businesses too have also been given additional facilities. For companies with more than 20 employees, the registration application will be approved within 24 hours, and if not, it will be considered approved automatically.
Earlier, fines ranged from ₹25 to ₹100. Now, the first-time penalty will range from ₹1000 to ₹3000, and a three-month grace period will be provided for making corrections. Legal matters will also be resolved directly — there's no need to go to court anymore."