- FKCCI writes to Nitin Gadkari, Union Minister for MSMEs
- Request to take immediate steps to release pending payments to MSMEs
- To form a strong enforcement independent body to monitor clearing of payments to MSME
In a letter written to Nitin Gadkari, Union Minister for MSMEs, Government of India, Federation of Karnataka Chamber of Commerce & Industry (FKCCI) appealed to take steps to release all Pending payments to MSME without any delay. The letter says that if all the pending payments are received to MSME's there will be a massive influx of capital funds to all the MSME's which will enable us to sustain in the business, retain the employment and grow further. The letter addressed to Mr. Gadkari is sent by FKCCI Director H A Kiran, representing the FKCCI leadership headed by its President, C R Janardhana.
Referring to several news clippings of the past where initiatives over this concern were raised, Mr. Kiran appreciated the efforts initiated by the Government but reminded this is the time for action. “ The Government has to pass a regulation with strict enforcement that all the organizations coming under Government of India, PSU and all Corporates to clear their pending payments to MSME with interest within 30th May 2020”, said Mr. H A Kiran.
He informed that the MSME Samadhan scheme is not so very effective as formulated by the Government of India, it has to be made more industrial friendly and should be strengthened by giving independent status with Independent officers where the cases are taken up day to day basis. “Presently all the officers heading the committee are having several other responsibilities and the cases are taken up after a long delay of several months”, he adds
The process of getting paments to MSMEs is very much delayed, so the intention of the Delayed payment- Govt of India – MSME Samadhan scheme is not serving effectively.
He urged that all the MSME Samadhan scheme cases are to be given a deadline to clear all the cases within 15th June 2020 and ensure that equitable payments are made along with interest to MSME. “A notification is requested from GOI stating that in MSME Samadhan cases the benefit of the doubt has to be always for MSME and not for the Corporate, PSU's and Government of India organizations as an important submission here is that the big Organisations will have stronger documentation than the MSME”, adds Mr. Kiran.
He states that even though there is a GOI order to ensure MSME payments well within 45 days and even though there is a corporate regulation for the same this Government order and regulations are not taken seriously by the paymasters. THE ROC filing for MSME dues is not at all effective, many of the corporates have not disclosed the dues. ROC should be given immediate instructions to send a notice to all the companies to update on the status of the disclosed and undisclosed MSME dues.
Unless & until there is a strong enforcement independent body to monitor clearing of payments to MSME in every state with powers to enforce, any regulations made will be ineffective. The Corporate, PSU's and Govt. of India organisations will not adhere to clear the MSME dues unless and until a strong enforcement body shall impose enforcement of penalty and jail term as available in the law.
This enforcement independent panel in every state has to be formed with two government officers from the Dept. of Industries and Commerce and two representatives from the leading Trade & Industry body like FKCCI and KASSIA in Karnataka. This panel has to be headed by a retired judge to monitor MSME Samadhan filed cases and all other pending payments to MSME.
He requested Union Minister on behalf of Trade and Industry to take up strong initiative in this regard which shall give a new impetus for the MSMEs. He informed that FKCCI Management under the leadership of C R Janardhana is putting all effort to ensure all the Business of Manufacturing, Trade & Service are been well supported by the Govt. of India to overcome the challenges of COVID-19 and ensure all the business are able to cope up the set back of the lockdown.