New Delhi, Mar 3 (KNN) A Delhi based MSME entrepreneur has approached Finance Minister Nirmala Sitharaman seeking release of his claim amount under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) claim which is stuck since last 5 years.

In a letter to Finance Minister, Jagmohan Singh, owner of World Rubber Industries (P) Ltd has claimed that his CGST claim is pending for nearly five years.

''World Rubber Industries (P) Ltd. became sick and on 20.01.2016 - CGTMSE claim of Rs 18, 80,245.00 was credited to the Company's A/c as the first installment and thereafter till today, almost four years after 2016, the balance amount of claim has not been transferred to the A/c,'' Singh told KNN India in a mail.

''I am being troubled by the bank to deposit the same, whereas the balance amount is to be paid as CGS claim as further reimbursement by the Government,'' he added.

Singh further claim that concerned bank kept it secret while filing a case in Debts Recovery Tribunal (DRT).  

''The bank without informing me filed a case in DRT and I came to know only in the middle of January 2020 when the Senior Manager of the bank informed me personally.

The bank failed to inform DRT that they have received the first installment as CGTMSE claim and the balance as on 16.09.2016 is Rs.19,93,713.63,'' Singh asserted.

''The bank also failed to inform the DRT that the promoter's contribution of Rs 13,24,907.00 has also been received which is approximately Rs 2.00 lac more than what the Company was supposed to pay,'' he claimed.

''The balance amount as on date with interest may be adjusted through the CGTMSE claim immediately,'' he suggested.

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme.

The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI), established a Trust named CGTMSE to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. The scheme was formally launched on August 30, 2000. The corpus of CGTMSE is being contributed by the GoI and SIDBI in the ratio of 4:1 respectively and has contributed Rs. 2477.78 crore to the corpus of the Trust up to May 31, 2016. As announced in the Package for MSEs, the corpus was to be raised to Rs.2500 crore by the end of 11th Plan. (KNN/ AKS)

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