MSMEs are the backbone of the Indian economy, contributing significantly to employment and GDP. However, they often face payment delays from their buyers, which affects their cash flow and makes it difficult for them to sustain their business. In such cases, MSME Samadhaan is a ray of hope for these businesses. And, if you’re a small business owner in India, you may have heard about the MSME Samadhaan online portal that has been launched by the Government of India to help micro, small and medium-sized enterprises (MSMEs) with delayed payments.
This portal is a platform for MSMEs to file their grievances regarding delayed payments from buyers before the Micro and Small Enterprise Facilitation Council (MSEFC) and get them resolved. Further, once you have lodged the complaint, it will be visible to everyone. On that note, let us understand in detail how MSME Samadhaan works and how it can benefit MSMEs.
How Does MSME samadhaan work?
MSME Samadhaan is an online portal that provides a platform for MSMEs to file their grievances regarding delayed payments from buyers. Once a complaint is filed, the buyer is notified, and a conciliation process is initiated. If the buyer does not respond to the complaint within 15 days, the case is sent for arbitration. The entire process is completed within 90 days from the notice date of Arbitration. The portal also provides information on the status of the complaint at various stages. Here is a quick guide on how to file a complaint against the buyer on MSME samadhaan-
- Visit the MSME Samadhaan portal
- After that, click on case filing for MSME entrepreneur
- Select the type of MSME registration validation, i.e., Udyog Aadhar Number or Udyam Registration Number
- Enter the Udyam registration number or Udyog Aadhar Number
- Next, enter the mobile number that is linked to the Udyam Registration number, and,
- Enter the verification code that you received
- Following this, click on validate Udyam registration button to receive a one-time password (OTP) on your email id which is registered with the Udyam registration number
- Now, you need to fill out and submit the application form. Please provide all the asked details such as work order, invoice, etc.
- Once you have filed the complaint, an acknowledgement email will be sent to your registered email id along with the contact address of the concerned MSEFC.
Note– You can also file a physical complaint with the concerned MSEFC office.
Who is eligible for MSME Samadhan?
If you are an MSME who is registered under Udyam and facing issues related to delayed payments or payment disputes with buyers, you are eligible to raise a complaint on this portal. Apart from this, you can also raise a complaint against government agencies or PSUs (only if your payment is delayed for a period exceeding 45 days).
Benefits of MSME samadhaan:
MSME Samadhaan provides several benefits to SMEs. Some of them are:
- Time-bound resolution: The entire process of resolving the complaint is completed within 90 days from the date of Arbitration notice of the complaint. This ensures that SMEs do not have to wait for months or years to get their dues.
- Cost-effective: The conciliation and arbitration process through MSME Samadhaan is cost-effective as compared to approaching the court.
- Transparency: The portal provides transparency in the entire process, and MSMEs can track the status of their complaint at various stages.
- Easy access: MSME Samadhaan is an online portal, making it easy for MSMEs to file their complaints from anywhere, anytime.
- Reduction in litigation: MSME Samadhaan aims to resolve the disputes amicably through conciliation, thus reducing the need for litigation.
What is MSME Samadhan?
MSME Samadhan is an initiative launched by the Government of India to provide a mechanism for micro, small, and medium enterprises (MSMEs) to settle their delayed payment disputes with buyers.
How does MSME Samadhan work?
Under MSME Samadhan, an MSME can file a complaint against a buyer who has delayed payment for goods or services provided by the MSME. The complaint is then forwarded to the concerned buyer for resolution within a stipulated time frame. If the buyer fails to resolve the issue, the case is referred to a conciliation council for settlement.
What is the procedure for filing an MSME complaint?
To file an MSME complaint, the enterprise needs to register on the MSME Samadhan portal and provide details of the delayed payment, along with supporting documents. The complaint is then forwarded to the buyer for resolution.
How can I recover my MSME dues?
An MSME can recover its dues by filing a complaint under the MSME Samadhan scheme or by taking legal action against the defaulter. The MSME can also approach the National Company Law Tribunal (NCLT) for debt recovery.
What happens if an MSME loan is not paid?
If an MSME loan is not paid, the lender can initiate recovery proceedings against the borrower. This may include legal action or recovery through asset seizure. Non-payment of MSME loans can also impact the credit score of the borrower.
Is it mandatory to file an MSME return?
Yes, it is mandatory for MSMEs to file their annual returns with the Ministry of Corporate Affairs. The filing of returns helps in maintaining the legal compliance of the enterprise and avoids penalties.
What is the samadhan scheme?
The samadhan scheme is a platform for the resolution of delayed payment disputes between MSMEs and their buyers. The scheme aims to provide speedy and effective resolution of disputes to promote the growth of the MSME sector.
What is the eligibility criterion for filing a complaint on MSME Samadhaan?
Only MSMEs who are registered under the Udyam are eligible to file a complaint on MSME samadhaan.
Is there any fee for filing a complaint on MSME Samadhaan?
No, there is no fee for filing a complaint on MSME Samadhaan.
What is the role of the conciliator and arbitrator in the dispute resolution process through MSME Samadhaan?
The conciliator facilitates the resolution of the dispute through mutual agreement between the parties. If the conciliation fails, the dispute is sent for arbitration, where the arbitrator decides the outcome of the dispute.
Can the decision of the arbitrator be challenged?
No, the decision of the arbitrator is final and binding.