In today's business landscape, the Micro and Small Enterprises (MSEs) sector in our country grapples with an array of challenges. Among these, the persistent issue of significant payment delays from buyers, particularly those affiliated with public sector undertakings (PSUs), has emerged as a critical concern. These delays trigger detrimental working capital cycles for small and medium enterprises, subsequently fostering an environment where these entities are at risk of transitioning into non-performing assets (NPAs). Recognizing the gravity of this situation and its potential implications of indebtedness and even insolvency, the Ministry of Micro, Small and Medium Enterprises (MSME) has launched the SAMADHAAN portal making online money recovery for MSME easy. This innovative platform empowers MSEs to formally raise complaints against buyers responsible for payment delays. Moreover, the portal facilitates mediation and arbitration services, playing a pivotal role in resolving disputes.
What is MSME SAMADHAAN?
MSME Samadhaan is an online portal where MSEs can file their applications online regarding delayed payments. The application can be made by the MSE seller against the buyer of goods/services before the concerned Micro & Small Enterprises Facilitation Council (MSEFC) of his/her state or union territory. The portal has been developed by the Ministry of MSME. However, it does not take action on the applications filed on the MSME Samadhaan portal directly. It only forwards these applications to the concerned MSEFC. It is the MSEFC that takes appropriate action in this regard. The MSEFC will also consider physical applications and a portal is only an option.
Who are MSMEs?
Any Indian Enterprise, dealing in goods or services, which is registered with the MSME department vide online registration process is a registered MSME. The Government of India has classified an MSME Enterprise in three categories i.e., Micro, Small and Medium Enterprises. The criteria for the same is listed below:
Manufacturing Enterprises and Enterprises rendering Services
Investment in Plant and Machinery or Equipment:Not more than Rs.1 crore; AND Annual Turnover; not more than Rs. 5 crore
Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore; AND Annual Turnover; not more than Rs. 50 crore
Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore; AND Annual Turnover; not more than Rs. 250 crore
When can an MSEs file the complaint for money recovery?
MSEs have the prerogative to file complaints against buyers if payment for goods or services remains outstanding for 45 days from acceptance or deemed acceptance. The seller should intimate the buyer when the goods or services are delivered via email or letter, and the seller shall keep a record of such delivery of goods or services. The seller also may ask the buyer to acknowledge delivery of Goods/Services. In absence of explicit acceptance of goods or services from the buyer, 15 days from the date of delivery of goods or services shall be considered as deemed accepted.
What is the step-by-step procedure to file money recovery application on the MSME Samadhaan portal?
If you are the MSE Seller that has been affected by delayed payments, you can apply for the MSME SAMADHAAN scheme by following these steps:
Register for the MSME SAMADHAAN portal - You can register for the portal by visiting the MSME SAMADHAAN website: https://samadhaan.msme.gov.in
Validate your Udyam registration - If you have a valid Udyam registration number, you can validate your registration on the MSME SAMADHAAN portal. This will allow you to file a complaint online.
Gather the required documentation - The required documentation for filing a complaint under the MSME SAMADHAAN scheme includes:
A copy of your Udyam registration certificate
A copy of the contract or work order between you and the buyer; In case word order or agreement is oral then an affidavit to that effect is to be submitted.
A copy of the invoices that you have issued to the buyer.
Proof of delayed payments, such as bank statements or emails.
Claim for interest on delayed payments at the interest rate of 18% per annum, compounded monthly.
File your complaint - Once you have gathered the required documentation, you can file your complaint online through the MSME SAMADHAAN portal.
Track the progress of your complaint - Once you have filed your complaint, you will be able to track its progress through the MSME SAMADHAAN portal. You will also be notified of any updates to your case.
The MSME SAMADHAAN scheme is a valuable resource for MSMEs that have been affected by delayed payments. By following the steps above, you can ensure that your complaint is filed correctly and that you are able to get the timely payments that you deserve.
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