Indian states reform laws: Jail terms replaced with fines

Seven Indian states decriminalise minor offences to boost business growth

Seven Indian states, led by the National Democratic Alliance (NDA), have launched a major reform drive to decriminalise minor offences. The initiative, modelled on the central Jan Vishwas Act, replaces jail terms with fines to ease business regulations. Officials say the changes will make investment rules clearer and more predictable.

The push began with a joint effort by chief ministers and finance ministers from these states. Their goal was to reduce unnecessary criminal penalties for small violations. Each state has now passed its own version of the reform.

Gujarat led the way with sweeping changes, amending 516 provisions across 11 laws. Madhya Pradesh followed by altering 144 sections in 24 Acts to remove criminal penalties. Haryana decriminalised 164 provisions in 42 different laws.

Maharashtra cleared its Jan Vishwas Ordinance, 2025, adjusting seven rules across five departments. Odisha issued an ordinance to cut down on excessive penal action. Tripura’s version amended 16 sections in 10 laws and scrapped five outdated provisions. Chhattisgarh had already passed its Jan Vishwas Bill in July, removing jail terms from 163 provisions.

All states aim to create a more business-friendly environment by replacing imprisonment with monetary fines.

The reforms mark the largest coordinated state-level effort to decriminalise minor offences in India. By replacing jail terms with fines, the changes seek to simplify compliance and attract investment. The new rules are now in effect across the seven participating states.