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Govt introduces legislation easing criminal penalties to boost business climate

The proposal builds on an earlier ordinance issued in December 2025, which had already decriminalized select offenses under five laws.

Kashmir Impulse Desk Jammu, April 2 The government on Thursday introduced legislation that would remove criminal penalties for a range of minor offenses, replacing them with fines in an effort to simplify regulations and make it easier to do business in the region. The bill, presented in the Legislative Assembly by Chief Minister Omar Abdullah,

Kashmir Impulse Desk

Jammu, April 2

The government on Thursday introduced legislation that would remove criminal penalties for a range of minor offenses, replacing them with fines in an effort to simplify regulations and make it easier to do business in the region.

The bill, presented in the Legislative Assembly by Chief Minister Omar Abdullah, who also oversees the law and parliamentary affairs portfolio, seeks to amend a series of existing laws to reduce the threat of imprisonment for procedural violations and bring the region’s legal framework in line with a broader national reform effort.

If adopted, the measure would revise provisions across 18 laws, substituting jail terms for minor infractions with monetary penalties, and in some cases increasing fines that officials say have remained outdated for years.

The proposal builds on an earlier ordinance issued in December 2025, which had already decriminalized select offenses under five laws. 

Officials described the new bill as an expansion of that effort, aimed at reducing what they characterize as an excessive compliance burden on businesses and individuals.

The legislation is modeled on a 2023 law passed by Parliament that sought to decriminalize minor violations across sectors, part of a wider push to improve India’s business environment by shifting from punitive enforcement to administrative penalties.

Beyond decriminalization, the bill also proposes to repeal a number of outdated statutes – including 19 appropriation acts and other laws considered no longer in use – in keeping with a central government initiative to streamline the legal code.

Officials say the changes are tied to the Business Reforms Action Plan, a framework monitored by the central government that encourages states and union territories to simplify procedures, digitize services, and reduce regulatory friction.

In presenting the bill, CM Omar framed the changes as part of a broader effort to balance enforcement with economic growth. By limiting criminal liability for minor violations, the government hopes to encourage compliance while reducing the risk of litigation and delays that can deter investment.

The proposal now heads to the Assembly for consideration, where it is expected to draw scrutiny over how far deregulation should go and whether easing penalties can improve the business climate without weakening accountability.

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