Over 3,900 MSME Payment Disputes Pending Before Rajasthan Facilitation Councils

Jaipur, Aug 5 (KNN) More than 3,900 payment disputes involving MSMEs are pending before facilitation councils in Rajasthan, highlighting continued delays in settling cases and releasing funds despite an expansion in the number of councils.

Over 3,900 MSME Payment Disputes Pending In Rajasthan

Industry representatives said delayed payments are putting additional pressure on MSMEs already facing working capital constraints, reported Times Of India. 

More than 60 percent of the disputes involve government departments, particularly power distribution companies, the Public Works Department (PWD), Public Health Engineering Department (PHED) and medical and health departments, officials said.

The number of MSME facilitation councils in the state has increased from one to 14 over the years to manage the growing caseload. General managers of District Industries Centres (DICs) have also recently been empowered to hear disputes that were earlier handled by collectors.

Industry Flags Repeated Hearings As Cause Of Delays

Industry representatives said the absence of a limit on the number of hearings in individual disputes is contributing to delays and affecting the disposal of other cases.

They also alleged that councils are often hesitant to pass orders against government agencies within a limited number of hearings, even in cases where the claims are straightforward.

Disputes involving amounts up to Rs 25 lakh are heard at the DIC level, while cases between Rs 25 lakh and Rs 75 lakh are handled by the additional commissioner. Disputes exceeding Rs 75 lakh are heard by the industries commissioner.

MSMEs Entitled To Payment Within 45 Days

Under MSME payment rules, buyers are required to make payments to micro and small enterprises within 45 days of receiving goods or services. 

However, payments are frequently withheld when buyers raise concerns over compliance with agreed specifications, prompting MSMEs to approach facilitation councils for resolution.

(KNN Bureau)