: Delayed Payment: FOSMI demands necessary directions through Gazette Notification to clear MSME dues #FinanceIndia #StockMarketNEWS Delayed Payment: FOSMI demands necessary directions through Gazette

@StockMarketNEWS Thu 09 Apr, 2020

Posted in: #FinanceIndia #StockMarketNEWS

Delayed Payment: FOSMI demands necessary directions through Gazette Notification to clear MSME dues #FinanceIndia #StockMarketNEWS
Delayed Payment: FOSMI demands necessary directions through Gazette Notification to clear MSME dues New Delhi, Apr 6 (KNN) The Federation of Small and Medium Industries (FOSMI) has written to Prime Minister Narendra Modi demanding to get published the necessary directions from the concerned Mijistries to clear Micro Small and Medium Enterprises (MSME) dues.

In a letter written to the Prime Minister Narendra Modi over delayed payment MSMEs, FOSMI said, The prevailing situation in the wake of COVID-19, MSMEs have plunged into great difficulties, most importantly delayed payment became the serious concern for this sector.

We therefore request that necessary directives from the concerned ministry to be published through Gazette Notification for clearing the dues of the MSMEs as per the relevant provision of MSMED Act 2006 i.e. within 45 days from the date of invoice failing which, will attract penal provision, it added.

Let reinforce the Gazette Notification SO 5622E dated 2.11. 2018 of Ministry of MSME, Govt. if India in its true purpose for the benefit of MSMEs, FOSMI said.

The MSME federation also urged Prime Minister to treat coronavirus as a case of natural calamity.

We also apprehend that as earlier; the government had clarified that the spread of Corona virus should be treated as a case of natural calamity and a force majeure clause can be invoked for the same. This may further worsen the receivable of MSMES as payments may get blocked under the pretext of force majeure clause which is the standard contract terms of PSUs, Govt. Departments and even large private sectors, it said.

FOSMI further said that COVID-19 should not be considered as a provision of force majeure clause in dealing with the payment of MSMEs.

To create specific portal to lodge complaint by aggrieved MSMEs and there should be strict monitoring system to make the system effective, suggested FOSMI.