₹5 Crore Fines, Criminal Liability: India’s AI Accountability Bill Explained

A private member’s Bill introduced in the Lok Sabha has brought artificial intelligence firmly into India’s legal and democratic discourse. The Artificial Intelligence (Ethics and Accountability) Bill, 2025, tabled by BJP MP Bharti Pardhi, proposes stringent ethical obligations, transparency mandates, and penalties of up to ₹5 crore for the misuse of AI—marking India’s most ambitious legislative attempt yet to regulate the technology.

The Bill reflects growing concern over the unchecked influence of AI systems in sensitive domains such as law enforcement, finance, employment, and surveillance. While still awaiting parliamentary debate, its provisions mirror global anxieties around algorithmic bias, opaque decision-making, and the erosion of individual rights.

A New Regulatory Framework

Central to the proposed law is the creation of an independent Ethics Committee for Artificial Intelligence, to be constituted by the Central government. Chaired by an expert in ethics and technology, the committee would include representatives from academia, industry, civil society, government, and specialists in law, data science, and human rights. Its mandate would span issuing ethical guidelines, monitoring compliance, investigating complaints, and recommending penalties or corrective actions.

Any individual affected by AI misuse would have the right to approach the committee, embedding accountability mechanisms directly into the AI lifecycle.

Penalties and Developer Accountability

The Bill proposes financial penalties of up to ₹5 crore, suspension or cancellation of licences, and— in cases of repeat or severe violations—criminal liability. AI developers and deployers would be required to disclose system purpose, limitations, training data sources, methodologies, and the logic behind AI-driven decisions impacting individuals.

To combat bias, the Bill mandates regular audits, diverse training datasets, and the withdrawal of AI systems found to exhibit discriminatory outcomes until rectified. Extensive documentation and compliance records would be compulsory, addressing concerns around AI systems operating as unexplainable “black boxes.”

Checks on Surveillance and High-Risk AI

The legislation places explicit limits on AI-powered surveillance, restricting its use to lawful purposes and requiring prior approval from the Ethics Committee. High-risk applications—such as those used in policing, credit assessment, and hiring—would face enhanced ethical scrutiny and pre-deployment review, with strict prohibitions against discrimination based on religion, race, or gender.

Innovation With Accountability

The Bill’s stated aim is balance: enabling innovation while safeguarding democratic values. Supporters see it as a proactive step to embed trust and accountability early in India’s AI journey. Critics, however, question implementation feasibility and the influence of a private member’s Bill on national AI policy.

Nevertheless, the proposal signals a clear shift—AI in India is no longer just a technology or economic issue, but a matter of law, rights, and public accountability.