Now Reading: MSME Samadhaan portal: 36% of recovery cases pending
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MSME Samadhaan portal: 36% of recovery cases pending
The MSME Samadhaan portal, the government's online platform for delayed payment claims, has a 36% pendency rate. Of the 2.57 lakh applications filed since inception, 44,537 are yet to be taken up…
The Story in Brief
The MSME Samadhaan portal, the government's online platform for delayed payment claims, has a 36% pendency rate. Of the 2.57 lakh applications filed since inception, 44,537 are yet to be taken up and 46,260 are under adjudication. Nearly 26,000 cases involve government departments or PSUs that have not responded at all, according to portal data.
The MSMED Act of 2006 was designed to resolve disputes within 90 days through Facilitation Councils, with arbitration awards enforceable under the 1996 Act. A 75% pre-deposit requirement deters frivolous challenges. Yet, despite this ambitious framework, the system mirrors the delays it was meant to replace, especially when the buyer is the government.
The Indian Opinion
The narrative that the MSMED Act has failed is premature. The law's design, fast-track arbitration, high interest penalties, and mandatory pre-deposit, remains sound. The real bottleneck is the non-compliance by government departments, which account for a large share of pending cases. Critics often blame the councils, but the absence of a response from the buyer is the root cause. The question is: will the government hold its own departments accountable, or will the SME Growth Fund merely be used to pay these delayed dues?
Source: livelaw.in
This story was synthesised by AI from the source linked above.
