msme samadhan

MSME Samadhan – Backdrop for Claiming Delayed Payments by MSMEs

MSMEs in India up-scale the manufacturing capabilities, curtain regional disparities and balance the flow of wealth. The biggest advantage of this sector to the economy is its unending demand for a human resource which further adds a productive value to GDP. To ensure that these entities sustain even longer and get a timely return of their work contracts, the Union Minister of State announced the initiation of a unified portal the MSME Samadhan for providing easy litigation facilities to MSMEs for claiming there delayed payments from government departments and Ministeries.

About MSME Samadhan Portal

The basic goal of government behind the creation of such a portal is to provide legal assistance to the MSME entities to claim their delayed payments from their buyers. The entities will be able to register their claim of payments against supplies or services provided to Ministeries and Departments of Union government, Central or State Public Sector entities and their respective subsidiary units.

The idea has been visualized for refining and bringing the practical aspect of provisions already stated for delayed payments in the MSMED Act, 2006. As per the provision stated, the buyer in case of default on payment within 45 days of the acceptance of the supply of goods or services will become liable for payment of the required amount along with penal interest of three times the bank rate being notified by RBI.

Understated in provisions of Section 15 – 24, the government is also required to form MSME Facilitation Council (MSEFC) for prompt settlement of disputes on delayed payments. MSEFC shall be the requiring agency which will issue directions to the buyer to pay interest as per provisions of the MSMED Act 2006.

The portal will provide necessary guidelines and instructions to the concerned ministries to resolve the issues. It has been made available in the public domain to exert moral pressure on concerned departments and defaulting organizations.

Salient features of the MSME Samadhan e-Portal

  • All Registered MSMEs can apply to the portal benefits with their allotted Udyog Aadhaar (UAM).
  • State governments shall provide the authority for filling Entrepreneur Memorandum, Rules of MSEFC and Constitution of MSEFC.
  • References/Complaints made to MSEFC shall be resolved within 90 days from the date of lodging such complaints.

Essentials for filling complaint on MSME Samadhan:

  • Invoice for goods or services supplied.
  • Notice for Issue of payment issued, if any ;
  • Valid Udyog Aadhaar Number

How to File Complain on MSME Samadhan?

Filling complaint on MSME Samadhan is only a few step process :

 

Procedure for Settling of Claims by MSME Samadhan

  • On receipt of the application, the council will undertake action against the respective defaulter with 15 days.
  • Online communication of the issue shall be made to both the appellant and the respondent.
  • Mutual Settlement options to both shall be provided as per decisions of the concerned authorities.
  • The Council shall then approve the application as legitimate against the respondent.
  • The Council will then update details of the proceedings on the e-Portal and hearing dates.
  • The application shall be made trackable to the appellant through UAM or Case Number.

Ministry of MSME has taken the initiative of MSME Samadhan to protect rights of small MSME units against the buyer of goods/services usually centrally or state engaged government entities and to facilitate easy monitoring of petitions filed under such circumstances.

Check your eligibility for MSME Registration online email us at info@cs-india.com

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