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Udyam Registration & MSME – All you need to know

If you are running a business and your customers are not settling your dues timely, and your business is registered under Udyam Registration, we have good news for you. Like maximum of the other MSMEs, you might be facing this problem and getting frustrated with this. The authorities sensed that this problem is working as an obstacle for both the MSMEs and the business environment of India. To deal with it, some provisions are introduced under the MSME Development Act, 2006. 

The provision:

Section 15 to section 24 of the MSME act, 2006 has provisions for settling and resolving the disputes due to non-payment or late payment to MSMEs with the help of MSEFC developed by the states.

The MSEFC has to evaluate the lawsuit filed and direct the buyer for paying the net amount along with interest as per the directions according to the MSME Act, 2006.

Let us understand the eligibility criteria to get the benefit.

Eligibility Criteria –

Any MSME with a valid Udyam Registration Certificate is eligible to get benefits from the program.

Process

MSME ministry has launched a web portal to file complaints using the Udyam registration certificate. 

Click on the given link to file a case: 

https://samadhaan.msme.gov.in/MyMsme/MSEFC/COM_MSEFC_EntLogin.aspx

Process after registering the case–

Once a case gets registered, the succeeding procedures are followed: 

  • A time of 15 days is taken before initiating any action on the complaint. 
  • Both parties will be notified via email. 
  • The Entrepreneur will be given the option to resolve the matter outside the court. If the settlement doesn’t happen, then the council will proceed with the case. 
  • After reviewing the case and its merits, Council will decide whether to act upon the case or not. 
  • If the case is registered, both the Entrepreneur and customer will be notified via email and SMS. 
  • After hearing all the involved parties, the court will give a particular day to proceed with the hearing. 
  • After hearing all the sides and reviewing evidence, the court will give its decision.

To date, a total of 94,426 applications have been filed. More than 94,000 applications have been filed since its inception. At present, a total of 41,467 cases worth 14840 crores are in the council and 13807 cases got resolved by the council. The remaining cases are pending and awaiting a response from either party. 

Some Features of MSME Samadhaan should be included, but missed are: 

  • Assuming the buyer is found guilty, he/she has to pay a hefty amount of money to the supplier as compensation.
  • Each case that is alluded to the MSEFC should be acted within 90 Days from the date, the reference was made.
  • If anyone else wants to file the case, then, at that point, such an application will not be engaged by the MSEFC except if a store of 75% of the award has been made by the litigant.

The objective of the MSME ministry to facilitate Udyam Registration in such a huge manner all over India is to have an option to assist with executing such and comparative different plans for the advantages of MSMEs in India. The authorities target establishing a friendly environment in India through the arrangement of Udyog Aadhaar and Udyam Registration. Each Udyami as the public authority likes to call enrolled MSMEs is a significant piece of the economy and can’t be disregarded at any expense.

To know more about MSME Samadhaan, visit the official link:

https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC_Welcome.aspx