Latest news with #MSEs
Mint
30-06-2025
- Business
- Mint
Private firms to join govt ‘panacea for small biz disputes'
New Delhi: Two private online dispute resolution (ODR) companies—Mumbai-based Presolv360 and Hyderabad-based Amika Arbitration and Mediation Centre—are likely to enroll as service providers on the government's new ODR portal, they said, fuelling hopes of swift, out-of-court resolution of disputes. The portal was launched on 27 June to cater to micro and small enterprises that are the worst hit by delayed payment disputes. These disputes occur when these enterprises do not receive payments for over 45 days for goods and services sold to large businesses. The portal was launched by the ministry of micro, small and medium enterprises (MSME). As per provisions of the MSME Development Act, 2006, MSEs need to raise a complaint with facilitation councils (MSEFC), government bodies that can either resolve the issue themselves or delegate it to a private firm providing the same service. The new MSME portal, for the first time, allows private ODR firms to be empanelled in a move that aims to cut delays. "Presolv360 will definitely be planning to get empanelled in the entire ecosystem," said Krunal Modi, co-founder and chief of staff at the firms that has overseen 350,000-400,000 dispute resolutions since its launch in 2019. "We have already been empanelled under the Sebi ecosystem. And this is also a great space for Presolv360 to get empanelled into and we will be undertaking that process in due course," Modi said. Sebi ecosystem refers to an online dispute resolution platform named SmartODR created by the capital markets watchdog Securities and Exchange Board of India in July 2023. The move is likely to enhance the caseload of these online dispute resolution firms, as small businesses prefer using their services. As per the MSME Development Act, an MSE failitation council (MSEFC) under Section 18 of the Act, a facilitation can request the services of an institution that provides alternative dispute resolution (ADR). ADR refers to any dispute resolution that takes place outside courts. It includes procedures such as arbitration, mediation, and conciliation, where parties can resolve their issues speedily. Micro and small enterprises are likely to go to facilitation councils and independent ODR firms for dispute resolution as they operate on lower capital, and cannot necessarily afford litigation or long-drawn arbitrations, experts said. MSME delayed payment disputes commonly range in valuation from ₹ 5 lakh to ₹ 5 crore, said Modi of Presolv360. Additionally, delays and capacity crunches in facilitation councils only led to MSEs seeking litigation instead of state-run services. These facilitation councils were set up in 2017. Each state was given the responsibility to set up such councils. There are 161 such councils in the country. Over 242,000 applications have been filed by MSEs with facilitation councils, but nearly a fourth of them are yet to be viewed by a council. About 68,000 grievances have also rejected by the councils, data by the MSME ministry showed. The MSME ministry's ODR portal, launched under the World Bank-backed Raising and Accelerating MSME Performance (RAMP) scheme, is expected to be the panacea to these delays, according to ODR experts. "This entire initiative coupled with the public-private partnership would really boost MSME growth because in a lot of disputes, a lot of money that is caught up in the delayed payment disputes will be freed up," said Modi. As per data from the MSME ministry's Samadhaan portal for delayed payments, complaints from MSEs since 2017 have been worth more than ₹ 27,000 crore, while facilitation council dispute resolution has managed to resolve cases worth approximately ₹ 7,800 crore, less than a third of the total payable amount. Hyderabad-based Amika Arbitration and Mediation Centre is also planning to get empanelled on the MSME ODR portal, said its registrar P. Madhava Rao. "We have begun the process of getting empanelled onto the portal," he told Mint. The firm, which has handled 26 MSME arbitrations and nearly 300 mediations in the last three years, has faced some difficulties in the procedure. Rao said, "It appears that the Indian government did not consult with all of the country's ADR institutions before creating the website, and neither was any letter issued to all asking them to get empanelled. Many people are unaware of the empanelment circular released in April 2025." On 2 April 2025, the MSME ministry notified guidelines for empanelment of ADR/ODR firms on its portal during the testing phase. MSE facilitation councils are run by state governments, under powers granted by a central legislation, said Rao. But this is likely to create a conflict of interest, as a considerable volume of delayed payment disputes are between MSEs and governments or government agencies and ministries. "This underscores the need for an impartial system of dispute resolution for MSEs at affordable rates, or in some cases, even pro bono services," he said. Mint earlier reported on 23 April that some MSEs had started opting for litigation over these state-run facilitation councils due to a lack of enforcement and delays in awards.
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Business Standard
27-06-2025
- Business
- Business Standard
Dispute resolution portal to speed up delayed payment cases for MSEs: Prez
President Droupadi Murmu said the online dispute resolution portal launched on Friday will help expedite hearings and decision-making in cases related to delayed payments to micro and small enterprises (MSEs). Speaking on the occasion of World MSME Day, President Murmu outlined the key challenges faced by MSME, such as access to finance, competition with big corporations and delayed payments. She said the number of registered MSMEs has grown rapidly as a result of the government's efforts. "The online dispute resolution portal launched today (Friday) will prove significant in expeditious hearing and decision-making in cases related to delayed payments," the President said. She appealed to young women to take advantage of government schemes to establish businesses and become self-reliant. The President observed that the world today is grappling with challenges emanating from climate change and rapidly evolving technology. Asserting that India is committed to climate change and sustainability goals, she said promoting green technology in MSMEs was the need of the hour. "This (green technology) will not only improve the sustainability of MSMEs and their competitiveness but also help achieve the country's climate goals," Murmu said. She emphasised that innovation is critical for sustainability of MSMEs, and shared that the government was promoting a culture of innovation by startups in various ways. Calling upon MSMEs to encourage grass-root level innovation, the President exhorted them to play a key role in the 'Viksit Bharat by 2047' vision. MSME Minister Jitan Ram Manjhi said MSMEs alone are providing employment to 34 crore people across the nation. Currently, cases worth Rs 50,000 crore are pending with Micro and Small Enterprises Facilitation Council (MSEFC), a body established by state governments to resolve payment-related disputes between MSEs and their buyers. The online dispute resolution portal has been established as a sub-scheme under the online dispute resolution mechanism under RAMP with World Bank assistance. Cases can be filed by micro and small entrepreneurs in instances of delayed payments using the portal. They have to enter the Udyam registration number to auto fetch details of their enterprise. Thereafter, the portal will inform regarding the date of hearing of the case which will be conducted via virtual conference. The portal provides online resolution via conciliation and arbitration.
Time of India
27-06-2025
- Business
- Time of India
Online dispute resolution portal to expedite resolution of payment delay cases concerning MSEs: Prez
Live Events NEW DELHI: President Droupadi Murmu said the online dispute resolution portal launched on Friday will help expedite hearings and decision-making in cases related to delayed payments to micro and small enterprises (MSEs).Speaking on the occasion of World MSME Day , President Murmu outlined the key challenges faced by MSME, such as access to finance, competition with big corporations and delayed said the number of registered MSMEs has grown rapidly as a result of the government's efforts."The online dispute resolution portal launched today (Friday) will prove significant in expeditious hearing and decision-making in cases related to delayed payments," the President appealed to young women to take advantage of government schemes to establish businesses and become President observed that the world today is grappling with challenges emanating from climate change and rapidly evolving that India is committed to climate change and sustainability goals, she said promoting green technology in MSMEs was the need of the hour."This (green technology) will not only improve the sustainability of MSMEs and their competitiveness but also help achieve the country's climate goals," Murmu emphasised that innovation is critical for sustainability of MSMEs, and shared that the government was promoting a culture of innovation by startups in various upon MSMEs to encourage grass-root level innovation, the President exhorted them to play a key role in the 'Viksit Bharat by 2047' Minister Jitan Ram Manjhi said MSMEs alone are providing employment to 34 crore people across the cases worth Rs 50,000 crore are pending with Micro and Small Enterprises Facilitation Council (MSEFC), a body established by state governments to resolve payment-related disputes between MSEs and their online dispute resolution portal has been established as a sub-scheme under the online dispute resolution mechanism under RAMP with World Bank can be filed by micro and small entrepreneurs in instances of delayed payments using the have to enter the Udyam registration number to auto fetch details of their the portal will inform regarding the date of hearing of the case which will be conducted via virtual conference. The portal provides online resolution via conciliation and arbitration.
Mint
20-06-2025
- Business
- Mint
Centre to launch online MSME dispute resolution portal on 27 June
NEW DELHI : The government is set to launch an online dispute resolution (ODR platform for small businesses to improve their ease of doing business on 27 June, according to two officials directly aware of the development. 'The MSME ODR portal has been tested, and dispute resolution using the portal has also begun during the testing phase," said one of the officials on the condition of anonymity. The portal, a part of the government's World Bank-supported Raising and Accelerating MSME Performance (RAMP) scheme, is aimed at resolving delayed payment disputes by facilitating communication between debtors and micro and small enterprises (MSEs), said the second official. Also Read: Bank loan sanctions to MSMEs for job creation down nearly a third in FY25 Mint first reported on 12 March that the government was going to digitize to dispute resolution for small businesses. So far, micro and small enterprises facilitation councils (MSEFCs) have resolved disputes, especially those related to delayed payments. As of the date, 161 councils have disposed of over 52,000 cases involving transactions worth ₹9,241 crore, out of nearly 100,000 such complaints by MSEs. Data on the micro, small, and medium enterprises (MSME) ministry's delayed payment monitoring system, Samadhaan portal, showed that more than 20 MSEFCs had not resolved a single case since their launch in 2017. The data also showed a wide variance in MSEFCs' actions. While 27 MSEFCs saw not even a single case, a few councils, such as MSEFC Mumbai, MSEFC Pune, and MSEFC Gandhinagar, resolved a considerable number of cases. MSEFC Mumbai resolved 4,625 matters involving about ₹750 crore out of the 7,756 cases it received. MSEFC Pune saw 6,956 complaints and resolved 5,271 of them, involving ₹223 crore. MSEFC Gandhinagar received 6,297 grievances and resolved 5,777 cases involving ₹809 crore, showed the data. 'As of the date, approximately 42% of the applications filed by MSEs are either yet to be viewed by MSEFCs or are at the consideration stage," said Krunal Modi, founding member and chief of staff, ODR platform Presolv360. 'One of the local MSEs recently shared with us that their first meeting was called by the concerned council after four months of filing the case. Additionally, our interactions with various MSEFCs have revealed that there is not only a manpower constraint but also a lack of physical infrastructure," he added. Also Read: MSMEs call for relaxations in the new FEMA regulations for exports and imports Under the procedure laid down in the MSME Development Act, 2006, micro and small businesses can approach these councils to seek payments from buyers that have been delayed longer than 45 days. Private mediators Interestingly, the new portal will allow private ODR service providers to be empanelled, putting into motion a key provision in the Act allowing MSEFCs to delegate cases to private institutions. As per the powers given to an MSEFC under Section 18 of the Act, an MSEFC can either conduct arbitration and conciliation proceedings in cases filed or provide assistance to any institution that provides alternative dispute resolution services. Alternative dispute resolution refers to any dispute resolution that takes place beyond courts. It includes procedures such as arbitration, mediation, and conciliation, where parties can resolve their issues speedily. Independent or private institutions providing ODR services shall only provide services through the new portal, as stated in the 2 April guidelines for appointment of such firms. The guidelines said these institutions should maintain a panel of arbitrators, mediators, and conciliators to resolve disputes on the portal. MSEFCs are created and operated by state or Union territory governments, as per the MSME Development Act. These states will have to enter into agreements with private ODR service providers after seeking information related to their operations. State governments will gather information related to the private ODR firms' incorporation, as well as about fees charged, the number of disputes resolved through arbitration, mediation, or conciliation, the guidelines said. More needs to be done However, the model followed by MSEFCs may not follow a key principle of arbitration—party autonomy, according to experts. 'The ADR procedure laid down in the Act has an element of conflict of interest, where the MSEFC can itself refer the matter for arbitration without mutual consent of the parties. Also, there is no bar for the conciliator or mediator sitting as an arbitrator," said P. Madhava Rao, registrar at Hyderabad's Amika Arbitration and Mediation Council, which provides ODR services. Also Read: MSME makeover: New definitions unlock bigger benefits, faster resolutions 'The main obstacle in the MSEFC ecosystem is the delay in resolving grievances and the presence of conflicts of interest," Rao added. States will also have to ensure that the dispute resolution personnel from private ODR firms abide by the MSME Development Act and the Arbitration & Conciliation Act, 1996. The Arbitration & Conciliation Act is currently undergoing reform, with the Union ministry of law and justice pushing for more institutional arbitration, Mint reported on 18 October 2024.
Time of India
19-06-2025
- Business
- Time of India
Online resolution for late MSE payments likely from next week
The government is likely to next week roll out Online Dispute Resolution (ODR) for speedier resolution of delayed payment disputes for micro and small enterprises , officials said. Presently, the Samadhaan portal provides limited digital services to MSEs such as registration for dispute resolution. Under the proposed mechanism, parties can not only register their delayed payment cases but also submit documents on the portal as evidence to strengthen their case. "Right from the filing stage, sending notice, and hearing every bit will be digitised. Samadhaan portal will be subsumed under ODR. The scheme promotes document-only dispute resolution, as in commercial disputes, documents override verbal submission, " a government official told ET. MSEs will also be provided concessions in application, documentation and other processing fees. The ODR mechanism under the MSME Development Act seeks to strengthen institutional support by building human resource and technological capacity of the Micro and Small Enterprises Facilitation Council (MSEFC), set up under the MSMED Act, the official added. These MSEFCs will be financially assisted under the scheme to create legal capacity. Live Events The MSMED Act prescribes a 45-day window for buyers to pay their MSME suppliers, failing which they become liable to payment of interest. As part of the ODR, the government is also giving a push to AI, allowing parties to opt for an AI-facilitated dispute settlement process before approaching MSEFC.
