MSME Samadhaan

On 30th October 2017, the Ministry of Micro, Small & Medium Enterprises (MSME) launched MSME Samadhaan. MSME Delayed Payment Portal or MSME Samadhan was launched expressly to empower micro and small entrepreneurs across the country.

The MSME Samadhaan portal enables the MSMEs to directly register their cases about delayed payments against the buyer of goods/services before the Micro and Small Enterprise Facilitation Council (MSEFC). These complaints will be visible to the Central Ministries/Departments/CPSEs/State Governments, etc for pro-active actions.

The portal will significantly facilitate the monitoring of delayed payment in an efficient manner. The information on this portal will be made available in the public domain, in an attempt to exert moral pressure on the defaulting parties. The MSMEs can also access the portal and monitor their cases.

MSMED Act 2006

Micro, Small and Medium Enterprise Development or the MSMED Act, 2006 (‘Act’) includes provisions that deal with the cases of delayed payments to Micro, Small and Medium Enterprises (MSMEs). According to these provisions, a buyer is liable to pay a compounded fine, if he/she fails to make a payment to the supplies within 45 days from the day of acceptance of the goods/service. The fine is compounded monthly on the amount at three times the bank rate notified by the Reserve Bank of India (RBI).

As per sections 20 and 21 of the Act, State Governments must establish Micro and Small Enterprise Facilitation Council (MSEFC) for the settlement of disputes for the filing of delayed payments. Any MSME with a valid Udyog Aadhar (UAM) or Udyam Registration can apply for such facilitation. Every reference made to the MSEFC shall be adjudicated within 90 days from the date of making such a reference. The provisions of this Act are implemented by the MSEFC which is chaired by the Director of Industries of the respective State/UT.

Section 16 of the Act, states the buyer is liable to pay interest with the monthly rests to the supplier in case of non-payment or delayed payment. The interest is compounded at three times the bank rate notified by the RBI. If the appellant filing the case is not a supplier and still wishes to file an appeal, he/she must set aside 75% of the award amount before the court begins deciding any such case.

Nature of Compensation Provided to MSME

The MSEFC of the State after the examination of the case filed by an MSME may issue directions to the buyer for the full payment of the due amount along with interest as well.

Who Can Apply on the MSME Samadhaan Portal?

Any MSME with a valid Udyog Aadhar (UAM)/Udyam Registration can apply for filing an online application against the buyer/purchaser of goods/services before the relevant MSEFC of his/her State/UT. These applications will be viewed by the MSEFC Council. Even the  Concerned Central Ministries, Departments, CPSEs, State Government will have access to these applications filed.

Features of the MSME Samadhaan Portal

1. Filing the application online: Entrepreneurs/MSME can now file claims online for delayed payments using the MSME Samadhaan portal.  In order to do so, a user must have a Udyog Aadhaar number validated with Aadhaar or Udyam Registration number.
2. Check status: Entrepreneurs/MSME can by means of the porta check the status of the filed online applications for delayed payments.
3. Pending payments dashboard: The portal will give information about the pending amount of MSMEs with individual buyers, CPSEs, Central Ministries, State Governments, etc. The CEO of PSEs and the Secretary of the concerned Ministries will be able to monitor the cases of delayed payment and issue necessary instructions to resolve such issues

Process to File Application on MSME Samadhaan Portal

The process to file an application on the MSMEs Samadhaan Portal by the MSMEs are as follows:

• Visit the MSME Samadhaan Portal.
• Click on the ‘Case Filing for Entrepreneur/MSE Units’ button available on the top left-hand side of the homepage.

• A new page will open. Select the ‘Udyog Aadhaar Number’ or ‘Udyam Registration Number’ option.
• Enter the Udyog Aadhaar/Udyam Registration Number, mobile number and click on the ‘Validate Udyog Aadhaar’ or ‘Validate Udyam Registration’ button.

• An OTP will be sent to the email registered during Udyog Aadhaar/Udyam registration.
• Enter the OTP and proceed to file the application for delayed payment.
• Upload the documents (scanned PDF documents of work orders of Respondent and invoices generated by you against those work orders) and submit the application.

Process to Check Status on MSME Samadhaan Portal

The process to check the status of the filed application on the MSMEs Samadhaan Portal by the MSMEs are as follows:

• Visit the MSME Samadhaan Portal.
• Click on the ‘Check Case Status’ button available on the top left-hand side of the homepage.

• A new page will open. Select the ‘Udyog Aadhaar Number’ or ‘Udyam Registration Number’ option.
• Enter the Udyog Aadhaar/Udyam Registration Number or application number and click on the ‘Login’ button.

• Once you login with valid credentials you will be redirected to your Dashboard where multiple actions can be done including viewing the application status.

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