'Expand judiciary 5X, drop old cases': Mohandas Pai lists urgent reforms India must enact now

India must expand its lower judiciary five-fold and deliver justice within two years of filing cases, Mohandas Pai has said, calling the justice system's failure "the biggest failure of independent India."

"The justice system must deliver justice within 2 years of filing cases," said Pai, chairman of Aarin Capital and former CFO of Infosys. "Expand capacity of lower judiciary by 5X over 5 years, expand criminal prosecution visibly by 5X over 5 years, withdraw all old cases more than 10 years where punishment is less than 3 years in prison, withdraw all appeals by govt in civil cases where govt has lost up to High Court up to set limits."

Pai also urged immediate regulatory changes to improve the investment environment for startups and venture funds. In a direct appeal to Union Minister of Commerce and Industry Piyush Goyal, he said: "Please have RBI look at documentation for FDI/investment in startups/venture fund, remove unnecessary documents—also for exit! Have same process as in public markets. This has become a big big barrier for getting funds."

The comments come days after a high-level economic consultation convened by Prime Minister Narendra Modi on August 18. The Prime Minister brought together top economists and senior secretaries to discuss boosting growth, generating employment, and enabling small businesses to scale.

At the meeting, experts called for a new wave of liberalisation to attract investment and increase India's competitiveness. They recommended simplifying regulations, cutting red tape for credible businesses, and strengthening banking reforms to enable smoother credit flow.

A senior government official present at the meeting said, "The clear message is that India must push the next wave of reforms, cut red tape, strengthen banks, and give small businesses the tools to scale up. The PM is very focused on jobs and MSMEs."

The discussions also included ideas such as rationalising fertiliser subsidies to free up fiscal space, increasing government spending to spur demand, and creating policy incentives to crowd in private sector investment.

Sources said the government is currently preparing a 100-day reform agenda, incorporating feedback from the August 18 session. Modi reportedly emphasised that job creation and MSME expansion will remain central to the country’s economic strategy, reiterating his aim to support small businesses as they evolve into globally competitive enterprises.

The consultation follows Modi's Independence Day speech, where he pledged "next-generation" Goods and Services Tax (GST) reforms by Diwali 2025. These reforms aim to simplify GST slabs, reduce costs on essential goods, and retain higher rates for sin and luxury items. A draft has already been circulated to states for feedback, and final decisions will depend on GST Council approval.