Indian Retailers Have The Highest Chance Of Getting Imprisoned For Economic Offenses!


Shreya Bose

Shreya Bose

Jun 05, 2023


A report by Teamlease Regtech says that there is a high chance of getting jailed if running a retail company in India.

This is because of the large number of compliance laws that have criminal clauses.

Indian Retailers Have The Highest Chance Of Getting Imprisoned For Economic Offenses!

Percentage of compliance laws

The report looked into a retail chain with multiple retail establishments having operations across six cities and two states and a corporate office in a single state deals with 3,182 compliances in a year.

Among them, 1,192 (or 37%) compliances contain imprisonment clauses.

Approximately 43% of these clauses are contained in state laws while the rest are within Union laws. Labour laws account for as high as 54% of all the clauses.

Objective

The report says that these compliance laws have been put in place to protect customers.

But on the flip side they have also increased the regulatory complexity faced by employers.

Levels of compliance

Law-making authority across various levels of government has created three levels of compliance – union, state and municipal.

On average, a retail store faces a total of 490 compliances, of which 53% are at the union level, 44% are at the state level and the rest 3% are at the municipal level.

Punishing non-serious offences

The Teamlease Regtech report mentions a monograph titled ‘Jailed for Doing Business’, co-authored by Gautam Chikermane and Rishi Agrawal.

According to this a significant portion of compliance clauses criminalises procedural violations and technical lapses rather than serious offences involving willful harm.

It illustrates that in many cases, there is an equivalence between punishment for minor errors by entrepreneurs and for death due to negligence under the Indian Penal Code, 1860.

Policy recommendations

The report suggests a thorough re-imagination of employer compliance in India.

This is because today’s entrepreneurs cannot compete in the 19th and 20th-century regulatory environment.

The report recommends three points to consider when framing policy reforms for facilitating ease of doing business in the country — decriminalisation, rationalisation and digitisation.

National Retail Trade Policy

A National Retail Trade Policy is currently under development by the Department for Promotion of Industry and Internal Trade.

It has sought inputs from 16 departments and ministries since it will affect the overall development of the retail industry.

Furthermore, the department is also formulating a national e-Commerce policy to boost the online retail sector. 

A cohesive retail policy must be built on the pillars of simplification, standardization, and digitalization in order to pave the way for growth and accelerate a short-term economic recovery.


Shreya Bose
Shreya Bose
  • 610 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online