Centre for Public Policy Research (CPPR), Kochi, aims to undertake a state level study to identify and assess the imprisonment clauses in the rules and regulations governing the Ease of Doing Business in Kerala.
The State of Kerala, with a Gross State Domestic Product of 5.7 lakh crore and ranked 15th in the EoDB ranking within the nation, has a total of 663 imprisonment clauses in its business laws. The presence of imprisonment clauses in the laws and regulations governing business has created inevitable barriers to the smooth flow of wealth and accelerated the risks faced by entrepreneurs in the compliance universe. Many of the clauses in the regulatory universe are general and universal, which means that even the most minor offence will have a disproportionately high provision for imprisonment.
The budgetary promises of the financial year 2023-2024 proposed to reduce the number of compliances and decriminalise over 3400 legal provisions to enable a friendly business environment and restore the prestige of entrepreneurship in the country. The excessive imprisonment clauses in the business legal system create a huge barrier to doing business, as often these clauses process violations or lack disclosures rather than wilful actions to harm. The challenge before policymakers is to improve labour conditions in the state without hurting the entrepreneurial community. The excessive criminality across the different statutory regulations failed to build a balanced ecosystem for economic growth. While the laws are required to deter wilful harm, the legal goal must be not to inflict retribution on the entrepreneurial ecosystem.


Objectives of the Project


      • To identify and assess the imprisonment clauses in the rules and regulations governing the Ease of Doing Business in Kerala

      • To propose an improved and simplified version of all compliance procedures in the state

      • To petition the Kerala state government by highlighting the prevalent issues and advocating reforms to the criminal penalties in business laws in the state

    • To advocate for an alternate framework or mechanism in the state to infuse dignity to entrepreneurs, businesspersons and wealth creators.




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