Supreme Court Justice Criticizes Tax and Legal Mindset, Calls for Bold Reforms

Last updated: 23 September 2025


Supreme Court Justice Manmohan has issued a stark warning that India will miss its ambitious Viksit Bharat @2047 target unless it fundamentally reimagines its legal and regulatory framework.

Speaking at Nyaya Nirmaan 2025, an event hosted by the General Counsels' Association of India (GCAI), Justice Manmohan said India's current legal system was designed for a different era and is no longer suited to a modern, digital economy.

Supreme Court Justice Criticizes Tax and Legal Mindset, Calls for Bold Reforms

Mindset must change

"How does an income tax officer or a GST officer treat you when you are generating wealth for the country? He treats you as a thief. His mindset is that something must be improper if you are generating wealth. That whole ecosystem has to change," he remarked.

He argued that voluminous and outdated statutes like the 500-page Income Tax Act, complex provisions and overlapping circulars were unintelligible to the common person. "Only a genius can understand it. If you want to be a futuristic economy, you need to reimagine the system," he said.

Need for New Legal Tools

Justice Manmohan highlighted urgent gaps in legislation on digital rights, data sovereignty, damages and climate justice, adding that judges were being asked to "reimagine without tools." He also called for greater use of mediation, pointing out that nearly 90% of matrimonial disputes and large partition suits can be settled outside court.

On tax disputes, he contrasted India's rigid procedures with the US IRS system, where taxpayers often resolve issues over a phone call. "The law, the system, everything needs a transformation. It doesn't need to be reformed; it needs to be reimagined," he emphasized.

Criticism of Law-Making and Collegium

Joining the discussion, Justice Pankaj Mithal criticized the manner in which laws are passed in Parliament. "Bills are drafted in offices, tabled and passed without debate. Every comma and every clause should be debated. Otherwise, no good law will come for the country," he said.

On judicial appointments, Justice Mithal noted that while the Constitution never envisioned a Collegium, it was introduced by a 1994 judgment with good intentions. However, he added that necessary changes must be considered where gaps exist.

Reforms for Viksit Bharat

Justice Manmohan concluded that a truly developed India must ensure "laws are just, not just legal; courts are accessible, not intimidating; and governance is transparent, not transactional."

The day-long event saw policymakers, ministers, and industry leaders engage on reshaping India's legal blueprint to achieve the 2047 vision.


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