Kerala’s regulatory framework significantly impacts businesses, often imposing criminal penalties for minor infractions. This report highlights the urgent need for decriminalisation in business laws to promote entrepreneurship and economic growth.

Key Insights

  • Ease of Doing Business: Kerala ranks 15th in India’s 2022 Ease of Doing Business Index, indicating challenges in its business environment.
  • Regulatory Landscape: The study identified 113 state laws affecting businesses, many of which impose imprisonment for minor infractions.
  • Focus on Reform: 34 Acts were shortlisted for decriminalisation, targeting minor procedural and technical lapses that do not threaten life, property, or involve fraud.

Research Approach

  • Data Collection: A mix of primary and secondary research was used to compile and analyse business-related laws in Kerala.
  • Stakeholder Engagement: Insights from business owners, legal experts, and other stakeholders enriched the findings.
  • Legal Review: Each Act was rigorously examined to assess its impact and penal provisions.

Recommendations

  • Regular Reviews: Enhance communication with stakeholders and establish periodic regulatory reviews.
  • Remove Imprisonment: Eliminate imprisonment provisions for minor infractions to improve compliance.
  • Amend and Reform Laws: Modernise outdated laws and align them with current socio-economic realities.
  • Consolidate and Simplify: Merge related laws to reduce complexity and ensure clarity.
  • Proportional Penalties: Introduce gradual penalties that scale with the severity of violations.

Anu Anna Jo is a former Senior Research Associate, Nissy Solomon is an Hon. Trustee (Research & Projects), Lakshmi Ramamurthy is an Hon. Trustee (Data Analytics & Corporate Management), and Dr D Dhanuraj is the Founder-Chairman at the Centre for Public Policy Research (CPPR), Kochi, India.

Views expressed by the authors are personal and need not reflect or represent the views of the Centre for Public Policy Research.


Chairman at Centre for Public Policy Research |  + posts

Dr Dhanuraj is the Chairman of CPPR. His core areas of expertise are in international relations, urbanisation, urban transport & infrastructure, education, health, livelihood, law, and election analysis. He can be contacted by email at [email protected] or on Twitter @dhanuraj.

Avatar photo

Nissy Solomon is Hon. Trustee (Research & Programs) at CPPR. She has a background in Economics with a master’s degree in Public Policy from the National Law School of India University, Bangalore. After graduation and prior to her venture into the public policy domain, she worked as a Geographic Information Systems (GIS) Analyst with Nokia-Heremaps. Her postgraduate research explored the interface of GIS in Indian healthcare planning. She is broadly interested in Public Policy, Economic Development and Spatial Analysis for policymaking.

Hon. Trustee (Data Analytics & Corporate Management) at  | [email protected] | Website |  + posts

Lakshmi Ramamurthy serves as an Honorary Trustee (Data Analytics & Corporate Management) at the Centre for Public Policy Research (CPPR). With over 18 years of experience, Lakshmi is an expert in data analytics across urban mobility, transport safety, regulatory, operations, insurance, IT, retail, and public policy.

Currently, she leads a Data & Analytics team within a state government department in Australia, applying her expertise to develop data-driven solutions that address public sector challenges.

Leave a Reply

Your email address will not be published. Required fields are marked *