As we all know that Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the industrial and economic growth of India, but after a good research, we found that the most common issue MSMEs face is delayed payment. So, here we are going to explain to you how you can resolve this issue by understanding the MSME Samadhaan Scheme.
Let’s dive into the ocean of Udyamita Helpline for explanation, and we will help you to resolve all your delayed payment disputes from buyers in the private and public sectors.
Why You Should Understand MSME Samadhaan Scheme?
MSMEs play a huge role in exports, employment generation, and inclusive growth. The delay in payment affects working capital, slows growth, and creates financial stress for many businesses. So to deal with this the Government of India has launched the MSME Samadhaan Scheme, an online scheme that provides MSMEs with a legal and transparent way to recover from buyers.
The scheme is set up under the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006. This acts as a leveling mechanism for businesses that are entitled to be compensated in the case of delayed payment.
In this article, you will get to know everything about the MSME Samadhaan scheme, including its features, the process of applying under this scheme, and documents etc.
Introduction To MSMED Act 2006
The MSMED Act, 2006, was implemented to promote, develop, and enhance the competitiveness of MSMEs in India. A significant provision is related to payment delays on MSMEs, and on this, the Act states:
- Buyers are meant to make payment to MSMEs within 45 days of the date of acceptance of goods or services.
- If the buyer defaults, he shall be liable to pay compound interest with monthly rests at three times the RBI bank rate.
- MSMEs could apply for delayed payments to the Micro and Small Enterprises Facilitation Council (MSEFC) through the Samadhaan portal.
Who Can File a Complaint on the MSME Samadhaan Portal?
The following entities may apply on the MSME Samadhaan portal:
- Micro, Small, and Medium Enterprises is registered with a valid Udyam registration number.
- Proprietorships, Partnerships, or Companies may apply if registered under MSME.
- MSMEs that have payments pending from Departments, Public Sector Undertakings (PSU), or Private companies, provided it is clear that payment has not been made.
Features of the MSME Samadhaan Scheme
The MSME Samadhaan Scheme assists micro, small, and medium enterprises (MSMEs) with their outstanding payments from large companies. The scheme offers the following key elements:
- Online portal: providing a way for MSMEs to file their dispute regarding overdue payments.
- Timely resolution: aims to resolve payment issues within 90 days.
- Redressal mechanism: allows the Ministry of MSME to intervene and resolve disputes quicker.
- Payment delays: focuses only on delayed payments by government and large private sector entities.
- Encouraging compliance: hopes to encourage timely payments to MSMEs for their viability.
Step-by-Step Process to File Application on MSME Samadhaan Scheme Portal
The MSME Samadhaan Portal allows MSMEs to make complaints against the buyers, who are delayed buyers of MSME’s services, with an easy-to-use process. Below is a simple step-by-step process:
Step 1: Go to the Official Website
Start your new complaint filing process by going to the official MSME Samadhaan Portal. This is the only official website to file payment delay complaints.
Step 2: Click on “Entrepreneur Login”
On the homepage, click on “Entrepreneur Login,” which is only for MSME Owners who wish to lodge a complaint.
Step 3: Log in with Udyam Registration.
In this section of the portal, enter your Udyam Registration Number (URN) and verify your URN using the OTP sent to the mobile number or email registered with the Udyam. Only Udyam-Registered MSMEs in this section can file complaints.
Step 4: Fill out Applicant Information.
In this next step, you will enter your business information, including enterprise name, contact address, mobile number and email ID, which will assist the Facilitation Council in identifying your business.
Step 5: Enter Buyer Details
Fill in the details of the buyer who owes you money. Include their name, business details, address, and whether they are in the private sector, PSU, or government.
Step 6: Add Invoice & Payment Details
Enter the invoice number and date, pending total amount, and due date. Indicate the amount unpaid so the council can accurately inform you and others about the amount they owe.
Step 7: Attach Supporting Documents
You can upload scanned copies of the invoices, purchase order, delivery proof, or any communication that you have had related to the payment delay. The attached documents will be considered as evidence.
Step 8: Check and Submit Application
Ensure that you double-check everything before submitting. Once submitted the complaint will be sent to the Micro and Small Enterprises Facilitation Council (MSEFC) and you will not be able to edit it afterwards.
Documents Required to File a Complaint Under the MSME Samadhaan Scheme
To ensure smooth filing, keep the following documents ready:
- Udyam Registration Certificate (mandatory for login).
- Copy of Invoices raised against the buyer.
- Purchase Order / Work Order issued by the buyer.
- Delivery Proofs or Work Completion Certificates (if applicable).
- Correspondence/Emails with Buyer showing payment reminders.
Note: You will also need some additional documents, as per your business, to know in detail. Contact Udyamita at advisor@udyamitahelpline.com.
How Does The MSME Samadhaan Scheme Work?
MSME Samadhaan portal is an online platform that was launched by the government to help MSMEs file a complaint against the delayed payment from buyers. This allows micro or small enterprises to register disputes directly with the Micro and Small Enterprises Facilitation Council (MSEFC) for resolution.
How Udyamita Helpline Helps You Get MSME Certified?
Before making a complaint on the MSME Samadhaan portal, you need to ensure you have already registered your enterprise as an MSME at the Udyam Registration Portal. Udyamita Helpline helps you to be aware of all the schemes that help you boost your business and avoid a crisis.
- A business that wants to register can do it all online.
- Entrepreneurs can engage with it and confirm the right business category (Micro, Small, Medium).
- The overall documentation and submission is as easy as possible, and allow for quicker issuance of your MSME Certificate.
Process to Check Status on MSME Samadhaan Portal
If you want to check the status of a complaint on the MSME Samadhaan Portal, simply do the following:
- Visit the Portal: Navigate to the MSME Samadhaan Portal.
- Log in to your account: Enter your credentials (user ID and password). If you are not registered, you will have to register first.
- Complaint Details: Once you have logged in, click on “Track Complaint”.
- Enter Reference: You can enter your complaint reference number or MSME registration number to find your current status.
- Status: Your complaint status will be displayed as pending, under review or completed.
Budget 2025: New Initiatives For MSMEs
The Union Budget 2025 introduced to enhance MSME Strengthening several new measures:
- Faster Settlement Mechanism: Improved digital tracking leading to shorter handling times.
- Increased Credit Support: Additional funding to the MSME Credit Guarantee Scheme.
- Technology Upgrade Scheme: Funding for MSMEs to upgrade to AI, automation and green technologies.
- Digital Samadhaan Dashboard: Ability to track state-specific MSME disputes in real time.
FAQs
Is Udyam Registration Mandatory For Filing A Complaint On MSME Samadhaan Portal?
Yes, only MSMEs with a valid Udyam Registration can apply.
What Is The Time Limit For Payment To MSMEs Under The MSMED Act 2006?
Payments must be made within 45 days of supply.
Can Private Companies Be Reported Under The Portal?
Yes, both government and private buyers delaying payments can be reported.
How Many Documents Are Required For MSME Samadhaan?
Five major documents are required for the MSME Samadhaan, and you can simply understand it with the help of the Udyamita Helpline Expert.
How Long Does It Take To Resolve Disputes Through MSEFC?
This dispute of MSEFC must be adjudicated within 90 days from the date of filing.
