Lockdown woes: Facilitation Council receives 989 complaints of delayed payment from MSMEs

ST Staff
Tuesday, 30 June 2020

Micro and Small Enterprise Facilitation Council (MSEFC) has received 989 complaints in the last three months about delayed payments to the MSME from big companies

Pimpri: The Micro and Small Enterprise Facilitation Council (MSEFC) has received 989 complaints in the last three months about delayed payments to the Micro, Small and Medium Enterprises (MSME) from big companies.

The MSMEs supply raw material to the big companies and expect to receive payment in 45 days. Most companies pay in time while some don't. If MSMEs payments are delayed, then they can appeal to the MSEFC and request for recovery of payments. This provision was made in the MSME Act 2006 (Dealing with Delay Payment). The defaulter company has to pay thrice the amount with interest as fine.

After the lockdown relaxations, many companies have restarted their operations. Some companies are not having cash liquidity as their previous payments have been not cleared. If these companies’ dues are cleared, the economy will start rolling again.  

Sadashiv Suravase, Joint Director of Industries Department said, "The MSMEs are not paid their money even after the supply is made in time. The facilitation council has been set up for the convenience of such small companies. We will soon start hearing the applications filed during the lockdown period."

The MSEFC has received 580 complaints in the period of three months from January to March 2020. Out of these, 236 complaints have been resolved and Rs 350 crore payment recovered by the MSMEs.

HOW TO LODGE COMPLAINT

Ministry of Micro, Small and Medium Enterprises has created a portal named MSME Samadhaan where small companies can file their applications online regarding delayed payment. The applications which are filed here, are forwarded automatically online to the concerned MSEFC established by the state government. This facilitation council takes appropriate action on the applications received. The applicant can contact the concerned MSEFC. Contact details of MSEFC are sent on the registered email of the applicant.

DOCUMENTS REQUIRED

  • Udyog Aadhar
  • Suppliers Details
  • Purchase Order
  • Invoice
  • Delivery Challan
  • Correspondence related to delayed payment
  • Affidavit

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