The Companies (Amendment) Bill, 2020 was introduced by Minister of State for Finance Anurag Thakur who sought to allay concerns of opposition members and said there will be no decriminalising of non-compoundable offences which deal with frauds.
The bill seeks to amend the Companies Act 2013.
Congress leader Adhir Ranjan Chowdhury, BJD's Bhartruhari Mahtab and Trinamool Congress leader Saugata Roy opposed the introduction of the bill.
Mahtab said while the government was seeking to decriminalise some offences, frauds were being reported in banks.
He asked if those who commit frauds will find it easy to get away.
Mahtab also accused the government of ad hoc approach and demanded that the bill be referred to the standing committee.
Chowdhury accused the government of having "devilish infatuation with the corporate world".
He alleged that it was "of the corporates and by the corporates" and the government "is appeasing the corporate world".
"Yes Bank is no bank. Instead of know your customer norm, it should know your bank," he said.
Thakur said that the bill seeks to decriminalise "minor procedural and technical defaults."
He said the move was also aimed at reducing the burden on NCLT.
"There will no decriminalising of non-compoundable offences which deal with frauds. We are not reducing CSR obligations but easing procedural requirements," he said.
Thakur said ethical business should be accorded is accorded due respect.
"If India has to become USD $ 5 trillion economy, such amendments are required," he said.