The Telangana Legislative Assembly has passed a landmark legislation that could transform how minor regulatory violations are handled in the state. The Telangana Praja Viswasam Bill, 2026, approved on Saturday, aims to decriminalise over 400 offences and replace criminal prosecution with monetary penalties for minor infractions. This move is expected to significantly ease the regulatory burden on businesses and individuals who currently face the threat of criminal action for relatively minor compliance lapses.
State Legislative Affairs and Industries Minister D Sridhar Babu explained that the legislation has been drafted following the framework of the Centre’s Jan Vishwas legislation. The primary objective is to decriminalise and rationalise minor offences that do not warrant criminal prosecution. Officials from the Industries Department conducted extensive consultations with various government departments to identify offences suitable for decriminalisation, with more than 400 such offences identified through this exercise.
Under the new framework, individuals and businesses found in violation of minor regulations will face monetary penalties instead of criminal proceedings. The government believes this proportionate approach will encourage better compliance while eliminating the fear of criminal prosecution for minor lapses. The legislation also introduces provisions for compromise in certain offences, allowing parties to resolve disputes without prolonged legal battles. This shift from a punitive to a more balanced regulatory approach is central to the state’s vision of creating a business-friendly environment.
The Praja Viswasam Bill goes beyond mere decriminalisation. It seeks to improve transparency and regulatory efficiency across the state’s administrative framework. The government plans to remove outdated and unnecessary laws and provisions that have been creating compliance challenges. The Industries Department will undertake awareness campaigns to educate businesses and the public about the rules and regulations under the new framework, ensuring smooth implementation of the reforms.
During the Assembly debate, legislators raised concerns about difficulties faced by small businessmen in securing bank loans. Minister Sridhar Babu assured that the government would instruct the State Level Bankers’ Committee (SLBC) to address these issues. He specifically highlighted the challenges faced by small entrepreneurs from SC, ST, OBC and minority communities in accessing bank credit, indicating that the government is committed to supporting small businesses through multiple channels.
The Telangana legislation aligns with the broader reform initiative launched by the Central government through the Jan Vishwas (Amendment of Provisions) Bill, 2026, which was passed by the Lok Sabha on April 1. The Central legislation aims to amend provisions across different laws to decriminalise and rationalise minor offences, with the goal of improving ease of doing business and ease of living. With the passage of the Praja Viswasam Bill, Telangana is now extending this reform approach across its own regulatory framework, positioning itself as a progressive state for business operations.
