Context: The U.P cabinet, led by Chief Minister has recently approved “The Uttar Pradesh Sugamya Vyaapaar (Pravadhaano Ka Sanshodhan) Ordinance, 2025”, which aims to decriminalize minor offences related to industries.
- This ordinance will make UP one of the first major states to remove imprisonment for minor, technical, and procedural violations across multiple State List Acts.
About Uttar Pradesh Sugamya Vyaapaar (Pravadhaano Ka Sanshodhan) Ordinance, 2025:
- Objective: It aims to enhance ease of doing business and minimise the regulatory burden.
- Coverage: It will cover 10 Acts and has amended more than 40 provisions and decriminalised 200 compliances. The new rules will impact 14 departments.
- The Acts under ordinance include the Factory Act, Shop and Commercial Establishment Act, Motor Transport Workers Act and Contract Labour Act.
- Relief for Industrialists: It abolishes provisions of imprisonment in offences such as illegal lock out, lay-off, running a trade or industry without registration.
- Jail term has been replaced with monetary and administrative penal actions.
- Monetary compensation: It works by removing criminalisation for actions that do not cause physical harm, fraud, or significant negative externalities, and instead replaces it with monetary penalties and administrative adjudication.
- 90% of all minor offences under the 10 Acts will carry only fines instead of imprisonment.
- For instance, imprisonment of up to 6 months for delay in payments or weighing errors under the Sugarcane Act, 1953, was replaced with administrative penalties and fines.
- Under the Industrial Area Development Act, 1976, the criminal penalties for non-filing or procedural delays were decriminalised and made fine-based.
