A continuous flow of money is very important for any MSME to keep its operations smoothly running and scale up further. The biggest challenge faced by the MSMEs is the delay in receipt of payments from clients/customers or vendors/principals.
Such delays in payment affect their financial stability and make it difficult for them to perform day-to-day operations.
Keeping this menace in mind, the Government of India has established an exclusive online system-the MSME SAMADHAAN – Delayed Payment Monitoring System-to help MSMEs retrieve their dues on time.
MSME SAMADHAAN: WHAT IS IT?
MSME Samadhaan is a scheme launched by the Government of India to help the MSMEs in solving the problem related to delayed payments from buyers. The delay in cash flow in an MSME, rendering it incapable of managing its operations and, therefore, exploring opportunities for growth. Hence, the government under the MSMED Act, 2006, provided this platform for safeguarding MSMEs against such financial obstacles.
Need for MSME SAMADHAAN
A continuous flow of cash is necessary for MSMEs having MSME registration in Chennai. They need payments in due time to pay the employees, buy raw materials, and perform other vital business activities. But one of the most common problems that almost all MSMEs experience is getting cash from their clients or buyers in due time.
In most cases, the buyer takes more time than generally agreed upon to clear his dues and causes financial pressure on the MSME.
Keeping in view the repercussions of such an effect, the Indian government enacted the MSMED Act, 2006. The Act mandates that buyers must make payments to MSMEs within a specified period, typically within 45 days from the date the goods or services are accepted or deemed accepted.
How Does MSME SAMADHAAN Work?
The MSME SAMADHAAN has, in fact, been designed to help the MSMEs file cases against buyers who do not pay their dues within the stipulated period of 45 days. The whole process on the portal is pretty simple and ensures that MSMEs can obtain redressal with ease:
1. Filing of Complaint:
Every MSME registered under the MSME Act, shall have the right to file a complaint in case of any delay in payment beyond the stipulated period of 45 days. Complaints may be filed on a very interactive portal known as MSME SAMADHAAN. It’s an online portal very easy to work with, and it makes it convenient for MSMEs to lodge their grievances on time so that they can take immediate action.
2. Legal Framework:
The complaints filed through the MSME SAMADHAAN portal are according to the provisions of the MSMED Act, 2006. In this Act, a legal framework is laid wherein the buyer is bound by the agreement to make a payment within stipulated timeframes. MSMEs use this legal framework to ensure their problems are sorted out amicably.
3. Facilitation Council:
Upon filing a complaint, it is forwarded to the MSEFC (Micro and Small Enterprises Facilitation Council)of the concerned area. The MSEFC is responsible for investigating the case and aiding in its resolution.
The Council may initiate conciliation proceedings between the MSME having MSME registration in Chennai and the buyer to arrive at an amicable settlement, which may resolve disputes amicably in less time.
4. Arbitration:
In case conciliation is not successful, MSEFC can go for arbitration. Whatever is arrived at during the time of arbitration becomes binding on the parties, hence the MSME will be able to retrieve its dues. This shall ensure a just and viable solution to the dispute and will help MSMEs get their due payments.
5. Interest on Delayed Payments:
The MSMED Act addresses interest charges for late payments. To this effect, in case of not being able to make payments within due dates, the buyer has to pay compound interest three times the bank rate notified by the Reserve Bank of India. It shall act as a strong deterrent against delayed payments and compensates MSMEs on account of financial inconvenience caused.
Eligibility Criteria to File Case on MSME SAMADHAAN
There are certain conditions that an applicant needs to fulfill to be eligible to file a case on the MSME SAMADHAAN portal. These are as follows:
MSME Registration:
The complainant needs to be a registered MSME under the MSMED Act, 2006. The proper MSME with MSME registration in Coimbatore, is the most key initial step for any business to avail of this platform in its favor.
Delayed Payment:
The delayed payment shall be beyond 45 days from the date of the acceptance or deemed acceptance of goods or services. This ensures that the platform will be used only for genuine cases where the MSMEs have been really affected by delays in the payment cycle.
Both parties:
Ideally, both the MSME with MSME registration in Bangalore and also buyer needs to be registered under MSME Act. However, even if buyer is not registered, one can still file complaint provided the MSME is registered. This allows flexibility for MSMEs to seek redressal even when dealing with unregistered buyers.
How Can Solubilis Help You?
This becomes difficult for the MSMEs to operate on the portal, MSME SAMADHAAN, and manage the associated legal and procedural complications. That’s where Solubilis comes in. Expertise in MSME compliance includes MSME registration in Bangalore. At Solubilis, we are fully engaged in assisting MSMEs in recovering their dues through the MSME SAMADHAAN platform. The services of Solubilis include:
Initial Consultation:
Solubilis first works on analyzing your situation, thereby understanding the minute details of your case and advising you with the best course of action. This consultation enables you to make better decisions and deal with your case effectively.
Case Preparation:
The team at Solubilis helps you in accumulating all types of documents and getting your case ready for submission. In preparing your case well in advance, Solubilis ensures a positive outcome for the same.
Filing of Complaint:
Solubilis files the complaint at MSME SAMADHAAN portal on your behalf to ensure that this complaint gets its filing correctly and within minimum time, saving much of your precious time and efforts.
Full Support:
The resolution of this would be furnished with continuous support from the house of Solubilis, keeping you informed with each step in the resolution, and this service will take complete care of the protection of all your rights. Thus, you can strive through this procedure with great confidence to tackle its complexities.
Take Action Today
Delayed payments can really unbalance the financial health of your MSME.
If your business is located in India and faces problems in delayed payments, then Solubilis can guide you through the whole process of using MSME SAMADHAAN platform for quick dispute resolution. When Solubilis will escort you through MSME SAMADHAAN process, delayed payments does not hinder your business growth ensuring your development.
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