Question : Delay in Payment to MSMEs

(a) whether as per MSME act, there is a timeline of 45 days to make payment to MSMEs and if so, the details thereof;

(b) whether the Government has registered cases on MSME SAMADHAAN-Delayed Payment Monitoring System for delay in payment by State/UT Governments with regard to delay in payments to the MSMEs, if so, the details thereof, State/UT –wise during last three years and the action taken by the Government in this regard; and

(c) whether the Government has issued any notice/notices to State/UT Governments for release of payment to MSMEs within 45 days, if so the details thereof and if not, the reason therefor?

MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NITIN GADKARI)

(a): The provision as per Section 15 of The Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act,2006) relating to delayed payment is as follows:

Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day:
Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.

(b): The Government of India does not register cases on the MSME Samadhaan portal. The cases on this online portal are filed by the Micro and Small Enterprises (MSEs). Once a case is filed by the MSE, a notice by email is immediately and automatically generated and sent to the buyer and supplier as well with directions to the buyer to pay the dues within 15 days. After 15 days, the MSEFC can register the case and start proceedings as per the provisions of the MSMED Act, 2006. The details of cases filed by the MSEs on the portal State/UT wise during the last three years is enclosed at Annexure.

(c): For release of payment to MSMEs, this Ministry has written to the Chief Secretaries of all States /UTs on 11th June, 2020, 4th August, 2020 and 20th August, 2020 with the suggestion for release of payments to the MSMEs immediately.