To lure investors, Kerala govt plans legislation to decriminalize minor offences across various laws

Time of India

07-05-2025

T'puram: The state govt is contemplating the introduction of comprehensive state-level legislation aimed at decriminalising minor offences across various state laws. The initiative draws inspiration from Centre's Jan Vishwas (Amendment of Provisions) Act, 2023, which amended 183 provisions across 42 central statutes to promote trust-based governance and ease of doing business.
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The proposal was deliberated at a high-level meeting chaired by the chief secretary on April 28. During the discussions (the minutes of which were accessed by TOI), the task of exploring the feasibility of such omnibus legislation was entrusted to the personnel and administrative reforms department additional chief secretary, industries department principal secretary and law department secretary. They were directed to identify a nodal department to spearhead the initiative and circulate a policy file for formal approval to draft and introduce the proposed legislation.
Jan Vishwas Act, 2023 represents a shift in the country's legal framework by replacing criminal penalties with civil penalties or fines for minor infractions. The Act introduces administrative adjudication mechanisms to handle technical violations, thereby reducing the burden on criminal courts. By simplifying compliance requirements and eliminating the fear of criminal prosecution, it seeks to create a more conducive environment for businesses and individuals alike.
To further the reforms, the Department for Promotion of Industry and Internal Trade is revising nearly 100 rules and laws across various departments under Jan Vishwas 2.0. Centre views this as part of its drive to support 'Make in India' initiative and modernize the regulatory ecosystem. The Act eliminates outdated provisions, saving time and resources for both govt and judiciary while easing regulatory compliance for businesses.
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The joint parliamentary committee that reviewed the Bill recommended extending the decriminalisation exercise to more laws, reinforcing the need for continuous reforms that align the country's framework with global business standards and investor expectations.
Kerala's proposed legislation aligns with this national shift, but the state's legal framework presents additional challenges. Several provisions in state laws carry penalties that are disproportionate to the nature and gravity of violations.
These too must be reviewed and amended to ensure fairness. Removing such harsh clauses is essential for Kerala to position itself as a genuinely business-friendly state.
Yet, legal amendments alone may not suffice. While this omnibus Act may reduce procedural hurdles for entrepreneurs, Kerala continues to face systemic issues — most notably, the persistent presence of hyperactive trade unionism. This remains a complex challenge that no legislative overhaul can fully resolve.
A stark reminder of this came in the form of the tragic suicide of entrepreneur Sajan in Anthoor, Thaliparamba, allegedly driven by bureaucratic interference. The incident sparked widespread debate about entrenched anti-business attitudes. Even the Kerala high court, in a 2021 ruling, observed that incidents of nokkukooli and coercive union practices were giving the state a reputation for "militant trade unionism."
The court noted that such practices were deterring investors and needed to be eradicated.
Former industries secretary and IAS officer P H Kurien welcomed the initiative, calling it a much-needed step in a state "with so many regulatory laws pulling back industrial growth and investment." However, he cautioned: "A mere act or law may not suffice; the spirit of the reform must percolate down to the very end of the bureaucratic chain to deliver real results."