CHENNAI: Tamil Nadu is moving to overhaul the legal landscape for businesses by identifying 48 state laws for potential decriminalisation as part of its reforms aimed at improving the ease of doing business in the state.
Official sources said the state law department has sought feedback from various administrative departments on converting several criminal offences — currently punishable with imprisonment or fines — into civil violations. The shift would allow for in-house adjudication and monetary penalties, removing the need for prosecution through the criminal justice system.
The proposal mirrors a national trend of regulatory easing, with TN looking to create a formal adjudicating mechanism to determine penalties, establish an appellate authority for challenges, and allow for compounding of contraventions. Sources said the intention is to modernise outdated laws that pose compliance burdens without necessarily serving a strong public interest.
As per sources, the governing council of Niti Aayog and Business Reforms Action Plan Plus 2024 guidelines issued by the department for promotion of industry and internal trade (DPIIT), ministry of commerce, has entrusted the state law department with the task of enacting a legislation similar to the Jan Vishwas (Amendment of Provisions) Act, 2023, focusing on decriminalising minor offences, introducing civil penalties and administrative actions for minor technical and procedure lapses and removing obsolete and redundant provisions of laws.
One of the statutes under review is the TN Apartment Ownership Act, 2022, which governs the rights of apartment owners, common area management and the functioning of owners’ associations. The Act currently carries penalties of up to Rs 1 lakh for violations, but officials say civil enforcement could make compliance more predictable for developers and associations while maintaining accountability.
Similarly, the TN Specified Commodities Markets (Regulation of Location) Act, 1986 — which stipulates fines ranging from Rs 500 to Rs 2,000 for contraventions — has been flagged for reform. Officials indicated that the state is weighing an enhanced penalty structure within a civil framework, which would avoid clogging magistrate courts with low-level regulatory offences.
Also on the radar is the partial decriminalisation of the TN Nuclear Installations (Regulation of Buildings and Use of Land) Act, 1978, which currently has provisions involving criminal prosecution for breaches.
The proposed decriminalisation package will be finalised after receiving departmental feedback, followed by legislative amendments where required. Officials said a phased rollout is likely, with priority given to acts where the offences involve only procedural violations or small-value penalties.
