MSME Samadhan Scheme

Are you a micro or small entrepreneur facing delayed payments from customers? Late payments can significantly strain your business's cash flow and hinder growth. But there's good news! The Government of India's MSME Samadhan Scheme empowers MSMEs to recover payments owed by buyers.

Inspired by a blog by CA Vikas Jain, this blog series will delve deep into the MSME Samadhan Scheme using a Frequently Asked Questions (FAQ) format. We'll answer your questions about:

• What is the MSME Samadhan Scheme?
• Who can avail benefits under this scheme?
• How to file a complaint on the MSME Samadhan portal?
• What happens after filing a complaint?
• What are the benefits of using the MSME Samadhan Scheme?

By the end of this series, you'll be well-equipped to leverage the MSME Samadhan Scheme and ensure timely payments for your business. Stay tuned for the next post, where we'll explore the eligibility criteria for availing benefits under this scheme!

MSME Samadhan Scheme: An Overview

The MSME Samadhan Scheme is an online portal launched by the Ministry of Micro, Small and Medium Enterprises (MSME) in 2017 to help MSMEs recover their pending payments from buyers. The scheme aims to facilitate timely payments to MSMEs, ensuring better cash flow and financial stability for these businesses.

Key Features of the MSME Samadhan Scheme:

• Online Platform: The scheme provides an online platform for MSMEs to file their complaints regarding delayed payments.
• Quick Resolution: The scheme aims for a speedy resolution of payment disputes through conciliation and arbitration.
• Reduced Litigation: The scheme encourages out-of-court settlements, minimizing the burden on the courts.
• Interest on Delayed Payments: The scheme mandates the payment of interest on delayed payments at a rate of three times the bank rate.

Eligibility for the MSME Samadhan Scheme:

Any micro or small enterprise registered under the Udyam Registration Number (URN) or the Udyog Aadhaar Number (UAN) is eligible to avail the benefits of the MSME Samadhan Scheme.

Procedure for Filing a Claim under the MSME Samadhan Scheme:

Visit the MSME Samadhan Portal: Go to the MSME Samadhan Portal (https://samadhaan.msme.gov.in/) and register yourself.

File a Complaint: Fill out the online complaint form, providing details about the buyer, the amount due, and supporting documents.

Submit the Complaint: Submit the completed complaint form and wait for the MSME Facilitation Council (MSMEFC) to review it.

Conciliation and Arbitration: If the buyer agrees to conciliation, the MSMEFC will facilitate a settlement between the parties. If conciliation fails, the matter will proceed to arbitration.

Award and Enforcement: The arbitral tribunal will issue an award, which is legally binding on both parties. If the buyer fails to comply with the award, the MSME can take legal action to enforce it.

Benefits of the MSME Samadhan Scheme:

• Timely Recovery of Payments: The scheme helps MSMEs recover their pending payments quickly and efficiently.
• Reduced Financial Stress: Timely payments improve the cash flow of MSMEs, reducing financial stress and enabling them to focus on business growth.
• Strengthened Business Relationships: The scheme promotes amicable resolution of payment disputes, fostering stronger business relationships.
• Access to Justice: The scheme provides MSMEs with an accessible and affordable mechanism to seek redressal for payment delays.

Conclusion:

The MSME Samadhan Scheme is a valuable tool for MSMEs to safeguard their financial interests and ensure timely payments. By utilizing this scheme effectively, MSMEs can strengthen their financial stability and contribute to the overall growth of the Indian economy.