The Chamber of Indian Micro, Small and Medium Enterprises (CIMSME), an MSME representative body, launched an online portal for the Micro, Small and Medium Enterprises (MSMEs) to report defaults in payment by private or government buyers after the prescribed period of 45 days from the invoice generation date.
Online Portal Launched by CIMSME
The online platform launched by CIMSME – NoDefaulters.com, allows MSMEs to check defaulters, report any payment delay issues and check the pending amount against them to other MSMEs before taking new orders.
The sellers can submit details of the commercial defaults by buyers on the NoDefaulters portal against the supply of goods or services. The platform will reach out to the buyers based on the supporting documents related to the defaults committed by them. It will contact the buyers to settle payments within a mutually-agreed period before listing them as defaulters on the portal, which will be visible to all registered users.
The buyers can also submit their response on the default reported against them. The online platform offers conciliation or arbitration services if required by both parties. It will assist the suppliers in conducting the due diligence of their proposed buyers.
Unlike the MSME Samadhaan portal, the government’s delayed payment monitoring portal, the NoDefaulters portal will publicise the default amount details, private or public entity names, and the applications filed against them. The MSMEs can currently file defaults on the portal without any fee until 31 January 2022.
Payment Defaults Reported on the Online Portal
About 365 users have registered on the NoDefaulters portal, out of which 127 have reported a default of about Rs.54.2 crore. Out of the Rs.54.2 crore, users have reported about Rs.52.7 crore against the private entities, Rs.1.4 crore against PSUs and Rs.7.20 lakh against government departments. The portal has settled Rs.84.6 lakh so far.
The total number of delayed payment applications on the MSME Samadhaan portal crossed the one lakh mark as of Tuesday, involving Rs.26,228 crore since the launch of the portal by the government on 30 October 2017.
The NoDefaulters portal launched by the CIMSME envisages bringing about zero commercial defaults and disputes in the country. However, the platform would have to achieve significant size to make buyers wary of being listed as defaulters in public and enable prompt payment to MSMEs.
For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in
I am an Advocate by profession. I interpret laws and put them in simple words. I love to explore and try new things in life.
