Date:March 28, 2023
How effective is MSME Samadhaan? Is MSME Samadhan effective ?
MSME Law points by NB Associates
MSME Samadhaan is an online portal that provides a mechanism for micro and small enterprises (MSEs) to file their delayed payment complaints.
The effectiveness of the portal in resolving delayed payment complaints depends on several factors, including the number of complaints filed, the response time of the concerned parties, and the efficacy of the dispute resolution mechanism.
Since its launch in 2017, MSME Samadhaan has received a significant number of delayed payment complaints from MSEs.
The portal has been successful in resolving a large number of complaints and ensuring that payments are made to the MSEs within the stipulated time period.
According to the Ministry of Micro, Small and Medium Enterprises, as of November 2020, MSME Samadhaan had resolved over 31,000 delayed payment complaints, resulting in the recovery of over Rs. 3,800 crores for MSEs.
One of the strengths of MSME Samadhaan is its ability to provide a time-bound and efficient mechanism for the resolution of delayed payment complaints.
The portal provides a platform for MSEs to file their complaints and track the status of their complaints.
The portal also facilitates communication between the parties and ensures that the concerned parties are notified of the complaint and given a reasonable opportunity to respond.
However, despite the effectiveness of MSME Samadhaan, delayed payment continues to be a significant problem for MSEs in India.
Many MSEs face challenges in accessing credit, managing cash flow, and meeting their operational expenses due to delayed payments from their buyers.
Therefore, there is a need for greater awareness about the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 and the use of mechanisms like MSME Samadhaan to address delayed payment issues.