How to Get Compensation Under MSME Samadhan Scheme?

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in India’s economic growth. However, delayed payments have been a persistent issue for MSMEs, leading to financial distress. To address this, the Government of India launched the MSME Samadhan Scheme to help businesses recover their dues. If you own an MSME and are struggling with unpaid invoices, this guide will help you understand the process of getting compensation under the MSME Samadhan Scheme.

What is the MSME Samadhan Scheme?

The MSME Samadhan Scheme is an online grievance redressal system developed by the Ministry of Micro, Small & Medium Enterprises (MSME). It allows registered MSMEs to file complaints against buyers who have delayed payments beyond 45 days. The scheme is governed under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006, ensuring a legal framework to resolve payment disputes.

Who Can Apply for MSME Samadhan?

To be eligible for the MSME Samadhan Scheme, you must:

• Be a registered MSME with a valid Udyam Registration Online Certificate.
• Have a payment due from a buyer exceeding 45 days.
• Be able to provide proof of transaction, such as invoices, agreements, or purchase orders.

If you haven’t registered your business under Udyam Registration, you can do so easily at udyam-registrations.org, which provides a simplified process for Udyam Aadhar Registration, Udyog Aadhar, and Udyam Registration Certificate issuance.

How to File a Complaint Under MSME Samadhan

Follow these step-by-step instructions to file your complaint and seek compensation under the MSME Samadhan Scheme:

Step 1: Visit the MSME Samadhan Portal

Go to the official MSME Samadhan Portal (https://samadhaan.msme.gov.in) and click on “Case Filing for Entrepreneur/MSE”.

Step 2: Register Your MSME Details

• Enter your Udyam Registration Number and registered mobile number.
• Validate your details using an OTP (One-Time Password).
• Provide business details such as name, PAN, GSTIN (if applicable), and address.

Step 3: Enter the Defaulter’s Details

• Provide information about the buyer who has delayed payments.
• Upload necessary documents like invoices, payment reminders, and contracts.

Step 4: Submit Your Application

• Review your complaint carefully and submit it.
• Once submitted, the complaint is forwarded to the Micro & Small Enterprises Facilitation Council (MSEFC) for further action.

What Happens After Filing the Complaint?

After submission, your case undergoes the following process:

1. Examination by MSEFC: The council verifies the complaint and supporting documents.
2. Mediation or Arbitration: The buyer is called for resolution either through mediation or arbitration.
3. Legal Action: If no settlement is reached, the case may be escalated to a court or tribunal.
4. Compensation Approval: If the claim is found valid, the MSME receives compensation along with interest on the delayed payment.

Benefits of the MSME Samadhan Scheme

• Legal Protection: Ensures legal backing under the MSMED Act, 2006.
• Faster Resolution: Complaints are resolved within 90 days.
• Interest on Delayed Payments: MSMEs are entitled to three times the bank rate interest if payments exceed 45 days.
• Online Tracking: Entrepreneurs can track the status of their complaint online.

Common Challenges & How to Overcome Them

1. Buyer Not Responding

• Send multiple reminders before escalating the issue.
• Keep records of email communication and payment follow-ups.

2. Insufficient Documentation

• Always maintain copies of invoices, contracts, and purchase orders.
• Use Udyam-registrations.org for proper registration and documentation support.

3. Delayed Resolution

• Follow up regularly with MSEFC for updates.
• If needed, seek legal advice for further action.

Why Udyam Registration is Important for MSMEs?

Having a valid Udyam Registration is mandatory for applying under the MSME Samadhan Scheme. Udyam Registration also provides several benefits:

• Access to government subsidies and financial aid.
• Priority lending from banks with lower interest rates.
• Exemption from certain direct taxes.
• Eligibility to participate in government tenders.

If you haven’t registered yet, visit udyam-registrations.org to complete your registration online.

Conclusion

The MSME Samadhan Scheme is a powerful tool to help small businesses recover their payments efficiently. By following the proper procedure and ensuring timely registration on the Udyam Registration Portal, MSMEs can safeguard their business interests and avoid financial struggles.