Criminalising minor offences is how legislature contributes to judicial backlog and unease of living

This overreach has turned criminal law into a tool for day-to-day governance, placing undue burden on citizens and businesses.

The database sheds light on three critical aspects of this structural issue (1) the sheer scale of criminalisation, (2) Inconsistent and disproportionate punishments and (3) overuse of imprisonment.

Three fourth of criminal provisions cover taxation, shipping and municipal governance

To put this into perspective: 7,305 acts or omissions are currently defined as criminal offences under Indian law. Of the 882 Central laws, 370 (42%) contain criminal provisions. Strikingly, 75% of these crimes regulate areas outside the traditional scope of criminal justice—such as taxation, shipping, and municipal governance.

The database also highlights the "overreliance" on imprisonment. A total of 5,333 offences (73%) are punishable with imprisonment ranging from 1 day to 20 years. Of these, 2,055 crimes carry jail terms of over 5 years, and 983 offences include mandatory minimum imprisonment. Given that nearly half of India’s jails are overcrowded—with 176 prisons operating at four times their sanctioned capacity, according to the India Justice Report 2025—this dependence on incarceration becomes particularly problematic.

Arbitrary and disproportionate punishments

Another key issue emerging from the database is the “arbitrary and disproportionate punishments” prescribed by law. For instance, jumping a red light (Section 184, The Motor Vehicles Act, 1988) attracts six months in jail—exactly the same punishment as practising homoeopathy without registration. Trivial acts are also criminalised. Consider Section 11(g) of the Prevention of Cruelty to Animals Act, 1960, under which “being the owner, neglects to exercise or cause to be exercised reasonably any dog habitually chained up or kept in close confinement” is a criminal offence. Similarly, flying kites “causing alarm” is criminalised.

Such “overcriminalisation” has a significant adverse impact on businesses. Investors, MSMEs, and entrepreneurs often find themselves entangled in a regulatory web where civil lapses are criminalised, resulting in substantial operational and reputational costs.

Naveed Mehmood Ahmad, Lead of the Crime & Punishment Team at the Vidhi Centre, states: “Criminal law is one of the most coercive instruments available to the State. While it is intended to address serious threats—such as those to life, liberty, public order, and national security—in India it has expanded far beyond this remit. It now reaches deep into the country’s social and regulatory fabric, becoming a tool of routine governance. Treating criminal law as the default response to all forms of non-compliance, including minor regulatory infractions, signals a persistent mistrust between the State and its citizens. This not only hampers the ease of living but also stifles the ease of doing business.”

Ahmad adds, “A more citizen-centric governance model requires the decriminalisation of minor offences, the adoption of alternative enforcement mechanisms, and the rationalisation of punishments. This demands a fundamental relook at the citizen-State relationship, one that is not governed by fear of arrest and prosecution. These reforms are essential to shedding the punitive legacy of colonial-era laws and aligning with the Government of India’s broader policy priorities.”

The problem of “overcriminalisation” severely impacts both the ease of living and doing business. While no one would argue against the necessity of rules and regulations for ensuring accountability and order, what is concerning is the extent to which these laws go beyond “mere regulation” and impose criminal sanctions for even minor or technical infractions.

For example, 252 crimes across 117 laws criminalise the failure to furnish documents, returns, or statements on time. These include compliance failures such as not submitting wealth tax, property tax, or gift returns by the due date.

Astonishingly, many acts—such as permitting an animal to be tethered in a public street, failing to state the name and address of property owners when requested, or conducting plumbing work without being a licensed plumber—are criminalised under municipal laws.

Excessive use of criminal law also disrupts smooth business operations. For instance, under the Hotel-Receipts Tax Act, 1980 (Section 28), failure to submit the required documents is punishable with rigorous imprisonment of up to 1 year and/or a fine. Similarly, the Tobacco Board Act, 1975 (Section 24(b)) prescribes imprisonment of up to 6 months and/or a fine for the same offence.

Additionally, 124 crimes across 80 laws criminalise the obstruction of a public officer—often without clearly defining what constitutes “obstruction”.

An effort to undo this has begun

The report rightly notes that, in recent years, the Government of India has launched a range of initiatives to improve ease of living and foster a more business-friendly environment. Central to this effort are regulatory and legislative reforms aimed at reducing compliance burdens and making the justice system more accessible and citizen-centric.

The decriminalisation of minor offences and the rationalisation of punishments have been a major focus of this reform agenda. Early steps, such as amendments to the Companies Act, 2013 and the Limited Liability Partnerships Act, 2008, laid important groundwork. The Jan Vishwas (Amendment of Provisions) Act, 2023 marked a significant leap by decriminalising and rationalising punishments in 183 provisions across 42 laws, administered by 19 ministries.

In March 2025, as part of the effort to enhance the Ease of Doing Business, the Union Government identified around 82 provisions across 17 Acts and 11 ministries for decriminalisation under the second edition of Jan Vishwas 2.0. In the Union Budget 2025–26, the government announced the introduction of the Jan Vishwas Bill 2.0, aimed at decriminalising over 100 outdated legal provisions.

In September 2024, the Ministry of Commerce and Industry stated that the decriminalisation effort ensures penalties are proportionate to the severity of offences while maintaining stringent punishments for serious violations. This step aims to align India’s regulatory framework with global business standards, promote investor confidence, and facilitate smoother business operations.

Given the emphasis the government is placing on decriminalising minor offences to ensure ease of living and doing business, the State of the System report by the Vidhi Centre offers a timely and comprehensive guide for shaping the trajectory of Jan Vishwas 2.0.