More than 500 crore rupees disputed payments of MSMEs still stuck: FOPSIA

New Delhi, Apr 6 (KNN) The Delayed Payment Council which was set up for the recovery of delayed payments of the MSMEs has failed to conduct any meeting in last one years leading to non-release of disputed payments of MSME, Federation of Punjab Small Industries Association raised.

Under MSME Act in 2006, the Council was constituted by the centre for the recovery of delayed payments of MSMEs from private or government agencies without going into court procedure.

Since payments are pending because of their lenient behavior, Industrialists have now decided to knock the doors of court for the early release of payments.

In this regard, the president of Federation of Punjab Small Industries Association, Badish Jindal, said he wrote the letter to the Industries Department to conduct a meeting soon as it is a matter of over Rs 500 crore.

Further he said that there was only one council under the Director Industries at Chandigarh, which used to redress the issues but later it was decided to form councils at the district level.

Four districts were chosen, Patiala, Ludhiana, Amritsar and Jalandhar, for forming delayed payment councils, he added.

Six months have been passed but the government has formed no-district level council and now there is only one council at Chandigarh for handling cases, which has led to pending of crores of payments, he mentioned.

The MSME sector prefers to get payments through the council simply because no money is charged for it and a simple application is to be given. Secondly, it saves them from long procedures followed by courts.

“Till the time, the district level councils are formed, regular meetings at Chandigarh should be convened,” said Jindal. (KNN/YV)