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



Quick Summary
Supreme Court Justice Manmohan has warned that India risks missing its 'Viksit Bharat @2047' goal unless its legal and tax systems are fundamentally overhauled. He criticised the current mindset of tax officials, stating they often view wealth creators with suspicion, and highlighted the complexity and outdated nature of laws like the Income Tax Act. Justice Manmohan stressed the need for new legal tools for digital rights and climate justice, and advocated for greater use of mediation to resolve disputes, contrasting India's rigid tax procedures with the US system.

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.

Justice Manmohan Calls for Bold Legal Reforms in India

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He argued that voluminous and outdated statutes like the 500-page Income Tax Act, complex provisions and overlapping circulars were unintelligible to the common person.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.

FAQ :

Justice Manmohan is concerned that India will miss its ambitious 'Viksit Bharat @2047' target unless its legal and regulatory framework is fundamentally reimagined.

He described the mindset of income tax and GST officers as treating wealth creators as thieves, believing something must be improper if wealth is being generated.

He pointed out that laws are voluminous, outdated, complex, and overlapping, making them unintelligible to the common person. He also highlighted gaps in legislation concerning digital rights, data sovereignty, damages, and climate justice.

Justice Manmohan called for greater use of mediation, noting that many matrimonial disputes and partition suits can be settled outside of court.

Justice Mithal criticised the way laws are passed in Parliament, stating that bills are often drafted in offices, tabled, and passed without sufficient debate.

He envisions a developed India where laws are just, not just legal; courts are accessible, not intimidating; and governance is transparent, not transactional.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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