MSME Samadhaan is a platform launched by the Indian government to help micro, small, and medium enterprises recover their amount that is pending or delayed unnecessarily. This platform was launched by the Ministry of Micro Small and Medium Enterprises on the 30th of October 2017. MSMEs can file applications for recovery of their delayed amount through this portal. The process of filing an application is online so that anyone can file the application easily. An entire process under MSME Samadhaan was governed by the Micro, Small, and Medium Enterprise Development Act, of 2006. The provision of this act will be implemented by the Micro and Small Enterprise Facilitation Council which is known as MSEFC.
What is MSME Samadhaan Portal?
MSME Samadhaan is made up of two words that are “MSME” which means micro, small, and medium enterprises. The second word is “Samadhaan” which means solution in Hindi. After combining the meaning of both the words “MSME Samadhaan” is a platform that will solve the issue of related to delayed payment of MSME. Hence we can say that Samadhaan is an online platform for the recovery of delayed payment of MSME.
Samadhaan portal helps MSMEs to get back their delayed payment in a timely manner. The main focus has been given to timely discovery because MSMEs are small businesses and their businesses are running on the basis of the money that comes through their daily earning. If that money does not come their business will be shut down. Last five decades, data shows that MSMEs have played a very important role in the growth of the Indian economy. This means if their work is hampered it will directly impact the Indian economy. Hence the government every now and then comes up with many schemes that can help MSME and MSME Samadhaan is one of them.
Delayed Payment of Micro, Small and Medium Enterprises Meaning
As per section 15 of the MSMED Act, 2006, if any MSME provides any goods or services to any buyer, then the buyer has to make payment on or before the date agreed upon between them orally or in writing. If there is any disagreement regarding the date then the period of making payment will not be exceeded for more than 45 days. It indicates that within 45 days of taking goods or services, one needs to make a payment. In any circumstance it got delayed more than mentioned in section 15 of the MSMED Act, it will be considered a delay in payment.
Penal Interest Charges on Delayed Payment of MSME
As per Section 16 of the Micro, Small, and Medium Enterprise Development Act, 2006, where any buyer fails to make payment on time according to Section 15 of the MSMED Act, he or she will be liable to pay compound interest on a monthly basis. The compound interest will be calculated on the amount from the appointed day or from the date agreed upon. This interest will be three times of the bank rate notified by the Reserve Bank of India.
Prerequisite of Filing an Application on MSME Samadhaan
Before filing an application on samadhaan portal make sure the following prerequisites are checked and done:
MSME Registration
Udyam registration, also known as MSME Registration, is mandatory for taking the benefit of the Samadhaan portal. Both are connected with each other and to some extent work hand in hand. This registration works as proof of whether any entity is MSME or not. As per the rule even if you have a small business but you don’t have MSME registration, then you can’t take the benefit of the Samadhaan portal. To file any application for the recovery of the delayed amount udyam registration certificate will be required. This registration certificate can be obtained through the online portal of MSME. After filing the application for registration, one will get the registration certificate on the same day. It is a hassle-free process.
Collect Requisite Documents to file an Application on Samadhaan
As already discussed many times, the process of filing an application or case on the Samadhaan portal is very simple. There are very few documents required for filing a case on the MSME Samadhaan portal. Given below is the list of mandatory documents required for the purpose of filing an application on the Samadhaan portal:
- Address proof of both the petitioner and respondent
- Contact details and email id
- Business address proof is also required
- Copy of invoice in dispute
- Copy of purchase order
- Copy of Udyam registration
Objective of the Samadhaan Portal of MSME
As it is very evident from the name MSME, that is micro, small, and medium enterprises, they are small businesses and limited to a particular area. They don’t have much funds and investors. Their business is running on the basis of the money which they are getting through their daily business. In that case, if their payment gets delayed their business will be stopped. There are many instances where big firms take advantage of MSME. They take either goods or services from the MSME and delay the payment unreasonably.
The level of harassment was so high that sometimes they didn’t even do the payment. Court proceedings are very long and time-consuming, also there is a lot of money required to go to court with a case. MSME owners who are already small businessmen cannot afford the court cases and related expenses. Hence the government came up with this Samadhaan portal. The aim of this portal is to empower MSMEs across the country. Through this portal, they can recover the delayed payment very easily.
Features of Samadhaan Portal of MSME
With respect to micro, small, and medium enterprises there are a lot of features of the MSME Samadhaan portal. Some of them are given below:
- It is easy to use
- The eligibility criteria to take the benefit of Samadhaan portal are very simple
- Micro, small, and medium enterprises were empowered
- Easy and pocket-friendly recovery of payment method
- Monitoring of delayed payment
- Can file an application for recovery online
- Check the status while sitting at your business place
- Easy and hassle-free application method
- One single platform for all over India
- Fast recovery of delayed payment
- Smooth working of MSME
- Less documentation and formalities
Application Procedure for Recovery of Delayed Payment of MSME
The application procedure for recovery of delayed payment of MSME on the Samadhaan portal is online. Online means filing of applications will be done electronically. All the documents and requisite work will be done digitally. Follow the steps given below to get your application submitted for the recovery of the delayed amount:
- Visit the MSME official portal of the government
- On the home page an option of “MSME Samadhaan” will be found
- Click on the “MSME Samadhaan” option
- The “Case filing for entrepreneurs/ MSE unit” option will be found on the left side
- Click on the same option and pop up with the entrepreneur validation will appear on your screen
- This entrepreneur validation has two options regarding MSME Registration. Choose as per the availability and proceed forward
- Now validate your udyam registration
- After validation, you will get an OTP on your registered mail ID.
- Fill in the OTP and verify
- After the above step, you will be logged in on the Samadhaan portal
- On the right side of your screen, you can find an option for “application entry”
- Click on the “application entry” option
- Then fill in the date of invoice in dispute and submit.
- Now another application form will open. In this form fill in all the required details regarding the petitioner. The petitioner is the one who is filing the complaint.
- Now another step is to fill in the details regarding the respondent. The respondent is the one against whom the application has been filing
- The next step is to fill in the details of the pending amount and upload the invoices and purchase order regarding the same
- After completion of all the above steps, the petitioner needs to fill in the information regarding the invoices.
- In the end, you will find an option to submit the application. Click on the same option
- Now your application will be there on your screen you can check the same and then click on the final submission.
- After the final submission you will get the case number and the intimation of the complaint will be sent to the respondent.
How to Check the Status of the Application on the Samadhaan Portal?
After filing an application on the Samadhaan portal one needs to check the status of the application from time to time. However, there are few people who don’t have knowledge about how to check the status of the case after filing it online. Here the step-by-step guidance to check the status of the case has been given:
- Visit the MSME official portal of the government
- On the home page an option of “MSME Samadhaan” will be found
- Click on the “MSME Samadhaan” option
- Click on the “Check case status”
- Login through ‘Udyog Aadhaar Number’ or ‘Udyam Registration Number’
- Once you log in you can check many details including the status of the case
Achievement of MSME Samadhaan Portal
MSME Samadhaan portal was launched in 2017. In the last 6 years, there have been a number of MSMEs who have benefited from this initiative of government. There are a total of 1,58,042 applications filed by micro and small units to date. Out of which 14,749 applications have been mutually settled, 38,447 applications are yet to be viewed, 40,432 applications are rejected, 30,874 cases are already disposed of and 3,5403 cases are currently under consideration. Similarly, when we talk about cases filed in the MSE Facilitation Council to date, there is a total of 64,414 cases out of which 30,874 cases are disposed of. The figure shows the success of the Samadhaan portal clearly. Still, this portal is working and solving the payment-related issues of many MSMEs.
Conclusion
MSME Samadhaan portal stands as a testament to the Indian government’s commitment to supporting micro, small, and medium enterprises (MSMEs). Providing an efficient platform for the recovery of delayed payments seems one of the best decisions with respect to the MSMEs. With its user-friendly interface and simple eligibility criteria, the portal empowers MSMEs to safeguard their financial stability. By addressing the crucial issue of delayed payments, the government acknowledges the pivotal role that MSMEs play in driving the Indian economy. Through its online application process, quick resolution of disputes, and minimal documentation requirements, the Samadhaan portal has become an indispensable resource for MSMEs. As the portal continues to provide timely solutions and alleviate financial constraints for MSMEs, it contributes to the sustained growth and vibrancy of this crucial sector in India.
