The Indian government has taken so many initiative to protect the payments of registered Micro, Small or Medium Enterprises (MSMEs).
A company or any other entity who have registered themselves under MSME and facing problems to recover long pending dues from their customers may approach the MSME department to take action against them.
Following process shall be followed by such MSMEs entity:-
1. Register your company/LLP/Partnership etc. as an MSME and obtain a MSME certificate [Udyog Aadhaar Number (UAN)].
2. Keep record of all formal purchase orders from customers and delivery proofs for all orders.
3. On all your invoices, mention, “your entity name and UAN” along with a note that “Delayed payments beyond 45 days attracts interest at a rate three times of the bank rate notified by RBI, compounded with Monthly interest”.
4. If any customer delays your payments unreasonably beyond 45 days, inform them that you would be approaching the MSME Samadhaan for your pending payments if they do not make the payment in X days.
5. If they still do not release payment, file a complaint at www.samadhaan.msme.gov.in
6. The customer would receive a notice from Micro and Small Enterprise Facilitation Council (MSEFC) asking them to respond with compliance in specified time period (usually 15~30 days)
IMPORTANT FAQs:-
Q.1 What is MSME Samadhaan Portal ?
Ans : MSME Samadhaan is a Portal created by Office of DC (MSME), Ministry of Micro, Small and Medium Enterprises (MSME) where Micro and Small Enterprises (MSEs) can file their applications online regarding delayed payments.
Q.2 Do Ministry of MSME take action on applications filed on MSME Samadhaan Portal?
Ans : No, MSME SAMADHAAN online portal is developed by Ministry of MSME only to facilitate MSEs filing of their applications regarding delayed payments online. The application once filed is forwarded automatically online to the concerned Micro and Small Enterprise Facilitation Council (MSEFC) established by the State/UTs as per the provisions of MSMED-Act 2006. Action on the applications regarding delayed payment is taken by the concerned MSEFC only.
Q.3 Is filing of Udyog Aadhaar Memorandum (UAM) Mandatory to file applications on MSME Samadhaan Portal?
Ans: Yes, UAM is mandatory to file applications online on MSME Samadhaan Portal.
Q.4 How can I get Udyog Aadhaar Memorandum (UAM) Number ?
Ans: Registration for Udyog Aadhaar can be done online on the official website of Ministry of MSME free of cost at following address: https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx
Q.5 Is it mandatory to file Delayed Payment Applications online on MSME Samadhaan Portal only?
Ans: No. MSME Samadhaan Portal has been created only to facilitate online applications regarding delayed payments. Physical applications can also be filed at the concerned MSEFC.
Q.6 Who can convert the application into Regular Reference Petition/claim case?
Ans: The applications are converted into case by the concerned MSEFC.
Q.7 If there is no action on an application filed by MSEs, whom to contact?
Ans: After submission, the application is automatically forwarded online to concerned MSEFC. Therefore, concerned MSEFC is to be contacted after filing the application online on MSME Samadhaan Portal. The contact address of concerned MSEFC is mentioned on the acknowledgement sent on the registered email of the applicant.
Q.8 Is work order compulsory to file application on MSME Samadhaan Portal?
Ans : Yes, work order is compulsory. In case purchase order is oral an affidavit to that effect is to be submitted.
Q.9 How to upload multiple invoices?
Ans: Multiple invoices can be combined into single PDF and can be uploaded. The affidavit of oral purchase order is to be included in single PDF.
Q.10 On which email OTP is sent?
Ans: The OTP is sent to the registered email ID in Udyog Aadhaar.
Q.11 What is the time limit for MSEFC to decide the Case?
Ans: 90 days from making such reference to MSEFC.
We hope this article will help you to get back your hard earned money.
Disclaimer– This Article is for the information and shall not used as any professional advice.
Written and Compiled By-
CS Akash Goel (Senior Secretarial Consultant at Startup Movers; Owner at Akash Goel & Associates; csakashgoel@gmail.com; akash@startup-movers.com; +91-995-367-2781)
Author Bio
I complained to recover payment more than one month ago but till date no action taken by MSEFC Council. It is too late for action. I think lot of promise but no action. My question is that why it is not follow up properly? What is Govt. Action?
MSME Samadhan the foolish and time passing procedure for MSME UNITS IT Provides no help to people working with Govt.Departments . I have Award and Decree of Facilitation Council Kashmir no body accepts or obeying such useless orders please advise people don’t go for Shamadhan simply pay bribes to officials and get payment released
Can we amend our complaint before msefc? If yes, what is the procedure?
Dear sir,
I have my udyam ragistration from 4/6/2021, before that I had udyog aadhar certificate from 20/5/2019. Some of my payment from my client is pending from 2008- 2009. Can I file a compliment now. Will it be proceded.
Regards
DEVENDRA RAHATE
ESHWAR ENGINEERING
9890317734
Dear Sir,
What was the next process when MSME applicaton converted in to case after the lapse of stipulated 15 days.
What will applicant do at this state.
i have UAM number from 2019. i have applied in delayed payment for the invoices of 2009.buyer rejects my claim as i had no SSI certificate though my UAM indicates that date of commencement of unit is 1.1.1989
how can i convince buyer
– Way to recover pending dues from Customers by MSME
Sir I lost my udyog adhar with uam number