CII Demands Act To Ensure Timely Delivery Of Services To Businesses

New Delhi: In a move to strengthen regulatory certainty, enhancing predictability and improving the overall ease of doing business in India, industry body Confederation of Indian Industry (CII) on Sunday called for the enactment of a central legislation to guarantee time-bound delivery of services to businesses by Union ministries, with penalties for delays or deficiencies and a strong grievance redressal framework.

The CII said that a key challenge remains the uncertainty on timelines for approval, which creates delays and cascading costs. “Despite commendable initiatives to mandate timelines in a range of areas, businesses continue to face procedural delays, regulatory uncertainty and non-adherence to timelines, significantly affecting operational efficiency and long-term investment planning,” said Chandrajit Banerjee, director general, CII.

“Absence of strictly enforced timelines is also felt in areas such as government refunds, disbursement of funds and subsidies, and raising claims by government departments on returns filed by businesses, which often causes cash flow disruptions and adds to compliance burden and uncertainty,” added Banerjee.

While most Indian states have enacted their own ‘right to services' or Public Services Guarantee Acts, which ensure timely delivery of specified public services to citizens, no such central legislation exists to ensure timely service delivery by central ministries.

“A legislation for time-bound delivery of services at the central level that ensures time-bound and faceless delivery of government services to businesses, with penalties for delays or deficiencies and a strong grievance redressal framework, would address this issue. Such a law would bring legal enforceability and institutional accountability to how public services are delivered to enterprises,” Banerjee said.

The industry body urged that these services must be delivered within stipulated timelines, with clear tracking and provision of deemed approval in cases where deadlines are breached. “Such deemed approvals should hold the same statutory validity as those granted through standard processes and must be enabled through faceless, digital channels to enhance transparency and reduce discretion,” it said.

It also suggested that the proposed legislation should also require authorities to record and provide clear reasons for any rejection and establish a strong, multi-tiered grievance redressal system. “This could include time-bound appeals, escalation pathways, digital complaint tracking, and compensatory payment in cases of prolonged inaction,” it said.