For Industrial Offences, Entrepreneurs Will Face Monetary Penalties Instead of Jail
To boost industrial investment in Uttar Pradesh, the state government is set to introduce the Decriminalization Bill (Vishwakosh). The Industrial Development Department, along with other related departments, is preparing a draft of this proposed legislation.
Key Feature of the Bill
The bill proposes that offences related to industrial activities—currently categorized as punishable offences—will instead attract financial penalties rather than imprisonment.
For example:
- At present, violations in industrial units can result in imprisonment of two to seven years.
- Under the proposed changes, such violations will only lead to monetary fines.
This is part of the government’s broader effort to encourage ease of doing business in the state.
Aligning with Investment Goals
Industrial Development Minister Nand Gopal Gupta “Nandi” said the government aims to ensure that entrepreneurs are not burdened with criminal charges for minor regulatory lapses. Instead, a rationalized system of penalties will apply, enabling smoother industrial operations.
The Decriminalization Bill will cover multiple areas such as:
- Labour laws
- Factory operations
- Pollution control
- Electricity theft
- Power transmission and safety rules
- Food safety standards
Altogether, provisions from 25 departments will be harmonized under the new framework.
Special Provision for Electricity Theft
Currently, electricity theft cases fall under criminal law, carrying the risk of imprisonment. The new bill proposes shifting such cases (except those involving grave or dangerous circumstances) into the category of financial penalties.
Expected Outcome
The government believes that this bill will:
- Reduce fear of harassment among entrepreneurs,
- Improve the business environment,
- Encourage greater investment in the state.
- Once enacted, it will be a key step toward industrial reforms and promoting Uttar Pradesh as an investment-friendly state.
