The Government of Tamil Nadu introduced the Tamil Nadu Shops and Establishments (Amendment) Act, 2025, on June 6, 2025, to amend the Tamil Nadu Shops and Establishments Act, 1947 (“TN Shops Act”).
As per the amendment, penalties for violating Sections 3, 7–11, 13–23, 25, 26, 29–41, 47, 47-A, and 50-A of the TN Shops Act have been raised from Rs. 25/- to Rs. 5,000/- for a first offence, and from Rs. 250/- to Rs. 10,000/- for repeat offences. Non-compliance with Section 41A of the Tamil Nadu Shops Act is now decriminalized and carries a penalty of Rs. 50,000. The fine for obstructing an inspector has been raised to Rs. 5,000/-. Contraventions are now compoundable without the earlier 3-year limitation. An adjudicating officer will inquire and impose penalties, and appeals may be made to an appellate authority, which must be resolved within 60 days. Unpaid penalties are recoverable as arrears of land revenue.
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