UP Govt Plans Landmark Bill to Decriminalize Business Laws, Boost Industry Confidence
BY Tajdar H Zaidi
Lucknow: In a major step to promote ease of doing business and attract investment, the Uttar Pradesh government is set to introduce a pathbreaking reform Bill that will abolish criminal provisions mandating imprisonment under most laws regulating trade and industry in the state.
The proposed legislation, titled the ‘Sugamya Vyapar (Amendment of Provisions) Bill, 2025’, aims to replace jail terms with stricter financial penalties and administrative actions, thereby making the regulatory environment less punitive and more business-friendly.
Once passed, Uttar Pradesh will become the first state in India to take such a sweeping measure, marking a bold shift in governance philosophy.
Focus on Ease of Doing Business and Worker Safety
Chairing a high-level meeting of officials, Chief Minister Yogi Adityanath emphasized the urgent need to remove unnecessary hurdles faced by entrepreneurs while ensuring workers’ welfare and safety are not compromised.
Embracing the spirit of Prime Minister Narendra Modi’s ‘Shramev Jayate’ initiative, these reforms are meant to benefit both entrepreneurs and workers.
We must replace outdated punitive provisions with a fair, transparent system that encourages growth,” the CM said.
Acts Under Review for Reform
The Bill will amend or reclassify provisions under 13 major Acts, including:
- Excise Act
- Molasses Act
- Tree Protection Act
- Revenue Code
- Sugarcane Act
- Groundwater Act
- Municipal Corporation Act
- Plastic Waste Management Act
- Cinema Act
- Panchayat Acts
Currently, these Acts include various clauses that penalize administrative or procedural lapses with imprisonment.
The new framework will substitute these provisions with monetary fines, civil penalties, or administrative measures to ensure compliance without unnecessary criminalization.\
Balancing Industry Growth with Accountability
The move is expected to significantly improve investor confidence by reducing the fear of criminal prosecution for minor violations, while still holding industries accountable through financial deterrents.
The Chief Minister has directed all departments to submit feedback on the draft Bill.
While most departments have supported the reform, a few have raised objections, which the government is reviewing to ensure that worker interests are fully protected.
Labour Reforms and Simplified Compliance
In addition to decriminalization, the UP government is pursuing comprehensive labour reforms to modernize trade and business operations. Key measures under consideration include:
- Extending the validity of factory licenses to reduce repetitive paperwork.
- Simplifying shop and establishment rules to encourage small businesses and startups.
- Creating more opportunities for women workers, ensuring inclusivity and empowerment.
- Introducing a self-certification and third-party audit system to make inspections less burdensome and more transparent.
These steps aim to cut red tape, lower compliance costs, and foster an environment where businesses can grow without being bogged down by excessive regulations.
Digital Governance: Nivesh Mitra 3.0 on the Horizon
As part of its ambitious reform agenda, the state is preparing to launch ‘Nivesh Mitra 3.0’, an advanced AI-powered, fully digital platform designed to provide a seamless interface between businesses and the government. The upgraded platform will include:
- A common application form for multiple approvals.
- PAN-based identification to eliminate repetitive documentation.
- A smart dashboard for real-time updates.
- Multilingual support to improve accessibility.
- An AI-driven chatbot for 24/7 guidance and grievance resolution.
The CM has directed that the platform be rolled out at the earliest and mandated strict adherence to service delivery timelines, ensuring investor issues are resolved swiftly.
A Game-Changer for India’s Most Populous State
With this Bill, Uttar Pradesh seeks to redefine its image from a heavily regulated state to a progressive investment hub, while safeguarding worker rights.
Experts believe this move could make UP a model state for business reforms, aligning with India’s goal to become a global economic powerhouse.
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