MSEFC holds hearing on delayed payments for goods supplied by MSE units

STATE TIMES NEWS

JAMMU: Micro Small Enterprises Facilitation Council (MSEFC), Jammu on Tuesday convened hearing in respect of claims of interest on delayed payments against supply of goods to buyers by the Micro and Small units.
The hearing was chaired by Director Industries & Commerce Jammu, Anoo Malhotra, (Chairman MSEFC Jammu) here in the office of Director Industries & Commerce Jammu at Jawahar Lal Nehru Udyog Bhawan, Jammu and was attended by the members and their representatives; Lalit Mahajan, Chairman Federation of Industries Jammu; D.P Singh GM(M) J&K SICOP; Navneet Kour, Manager J&KDFC; Sanjay Gupta Incharge (Credit) J&K Bank and Trishala Kumari Joint Director (M&P) along with staff of MSEFC Secretariat.
Chairman of the MSEFC reiterated various provisions of the MSMED Act under Chapter V pertaining to delayed payments highlighting that, the buyer in terms of Purchase or availing Services has to make payment to the Micro and Small unit supplier or service provider on or before the date agreed upon which in no case shall exceed 45 days from the date of acceptance of goods or services. In case of failure to comply with the timeline, the buyer is liable to pay interest with monthly rests (Compound Interest) at three times the bank rate notified by RBI on the amount under default. The MSEFC took up 37 (Thirty Seven) cases of delayed payments for discussion and after deliberations issued direction to the respondent Departments/ Parties to reconcile the data for amicable resolution of issues with the appellant units. Out of total 62 new applications, 15 new cases were taken by MSEFC. The parties to the new cases were advised to complete the process of reconciliation under section 18(2) of the Act within a period of one week and furnish the status to the MSEFC for further action. Further, with the intervention of the MSEFC Jammu, an outstanding principal amount of Rs. 0.84 crore has been cleared as intimated by the respondents in two cases.
A total of 19 cases have been settled amounting to Rs. 19.14 crore (approx.) on account of delayed payments till date.