Heavy penalty for delaying payment to MSMEs in J&K: MSEFC

ZT NEWS NETWORK

JAMMU: The Micro & Small Enterprises Facilitation Council (MSEFC) has warned that the delay in payments for the supplies received from the Micro Small and Medium Enterprises (MSMEs) will invite heavy penalty against the defaulting buyers under the MSMED Act.

A circular issued by Chairperson, Micro & Small Enterprises Facilitation Council (MSEFC), Anoo Malhotra, stated that the Micro Small and Medium Enterprises Development (MSMED) Act 2006 (Act No. 27 of 2006. Dt. 16-06-2006) provides for specific provisions to deal with cases of delayed payments to Micro & Small Enterprises in respect of goods supplied or services rendered by them.

It stated that as per Section 15 of the MSMED Act 2006, the buyer shall make payment to the supplier for the supply of goods & services within 45 days from the day of acceptance of goods/services. “In case the buyer fails to make payment as required under Section 15 referred above, the buyer is liable to pay compound interest with monthly rests to the supplier for such delayed period, beyond 45 days, on the amount payable at three times the bank rate notified by Reserve Bank of India as provided under Section 16 of the MSMED Act, 2006,” it stated.

The Circular has directed the buyers i.e. Government Departments/ PSU`s/ Autonomous Bodies/ Agencies or other industrial units in their own interest should release the due payments of Micro & Small Enterprises well within 45 days of acceptance of goods so as to avoid penalty in the shape of interest at the rate of three times the bank rate notified by the Reserve Bank of India for the period of delay.

It further stated that the case filed by an aggrieved MSE, the default of payment by the concerned Department is reflected on the SAMADHAN Portal of MSME where Union Minister of MSME himself monitors the progress regularly.

“Any act of blacklisting the appellant unit or denying any future opportunity for supplies to such MSE by the Department or Corporation shall solely be the responsibility of the concerned officer; as such actions are not taken well by the Department of MSME, Government of India,” the circular warned.