Supreme Court Justice Manmohan warns that IT and GST officers often treat wealth creators like thieves, highlighting the need to reform India’s tax and regulatory system for a digital economy.
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NEW DELHI: At the Nyaya Nirmaan 2025, hosted by the General Counsels’ Association of India (GCAI), Supreme Court Justice Manmohan delivered a powerful message on the urgent need to reimagine India’s legal and regulatory systems to achieve the nation’s ambitious Viksit Bharat 2047 vision. The event, themed “Reimagining India’s Legal Foundations for Viksit Bharat @ 2047”, gathered judges, ministers, policymakers, and industry leaders for a full day of discussions on shaping India’s legal blueprint for the future.
Justice Manmohan emphasized that incremental reforms, while important, are insufficient. He observed that many of India’s laws are from a previous era and fail to meet the needs of a rapidly digital economy.
“You can’t have an Income Tax Act running into 500 pages with one provision stretching across five pages and circulars cutting across the law itself. Only a genius can understand it. A layperson cannot. If you want to be a futuristic economy, you need to reimagine the system,”
he said.
He highlighted how taxpayers are often treated as offenders merely for generating wealth, reflecting a systemic mindset that must evolve. While faceless tax assessments and AI in GST compliance are steps forward, the broader legal ecosystem requires a fundamental transformation.
Justice Manmohan pointed out that India’s legal framework largely addresses a brick-and-mortar world, leaving courts to navigate complex digital disputes without legislative guidance. He cited issues such as standard essential patents, data sovereignty, digital rights, and climate justice as areas urgently needing new laws.
“You are asking judges to reimagine without tools. New laws on damages, data sovereignty, digital rights, and climate justice are urgent,”
he emphasized.
The Justice also stressed the potential of mediation in reducing litigation. He noted that nearly 90% of matrimonial disputes with a criminal color (498A) can be settled through mediation, and large partition suits often find durable solutions only outside traditional courtrooms.
“In one matter that kept bouncing between courts, I said it reminds me of a James Bond film—neither the hero dies nor the villain dies; there are only sequels,”
he quipped.
A key barrier, according to Justice Manmohan, is mistrust within the government, where even honest officers fear repercussions for resolving disputes proactively.
“Can you imagine that here?”
he asked, contrasting India’s rigid procedures with the US IRS system, where taxpayers can resolve routine disputes over the phone without lengthy show-cause notices.
Justice Manmohan concluded with a compelling vision for 2047:
“The law, the system, everything needs a transformation. It doesn’t need to be reformed; it needs to be reimagined. The goal is a nation where laws are just, not just legal; courts are accessible, not intimidating; governance is transparent, not transactional.”
Speaking at the same event, Justice Pankaj Mithal focused on the law-making process. He criticized Parliament’s current practice of passing bills without sufficient discussion or debate, stressing that every clause, sentence, and comma deserves scrutiny to ensure good laws.
“If we make the law in this way, then no good law will be made for the country. Every point of the law, every point of the bill, should have a good debate. It should be on every sentence. It should be on every comma. Otherwise, that law should not be passed.”
On judicial appointments, Justice Mithal explained the constitutional origins of the Collegium system, noting its good intentions but acknowledging that reforms may still be needed.
