About this scheme
Under the MSMED Act a buyer must pay a micro or small supplier within 45 days of acceptance; beyond that, compound interest at 3× the RBI bank rate is due. MSME Samadhaan is the free online portal to file the claim with the Micro & Small Enterprises Facilitation Council (MSEFC). The MSMED (Amendment) Act 2026 (passed 7 Aug 2026) lets the supplier file in its OWN registered jurisdiction regardless of where the buyer is, caps mediation at 90 days, requires referral to arbitration within 30 days if mediation fails, and requires at least 50% of the amount to be paid to the supplier if a court challenge drags past six months.
What you get
- Free to file; no lawyer needed for the first step
- Compound interest at 3× the RBI bank rate on the overdue amount
- File in your own district (MSMED Amendment Act 2026)
- Mediation must finish in 90 days; arbitration award within 90 days
Who qualifies
All industries qualify (no NIC restriction).
Available across India (central scheme).
How to apply
- 1Log in to samadhaan.msme.gov.in with Udyam number
- 2Enter buyer and invoice details, upload documents
- 3Application goes to the MSEFC of your state/district
- 4Council attempts mediation (≤90 days), then arbitration
Key terms and conditions
- Applies to micro and small suppliers (not medium)
- Interest is not tax-deductible for the buyer — strong pressure to settle
- Council reference is against the buyer; TReDS is the way to avoid the delay in the first place
What disqualifies you
- Supplier must be Udyam-registered at the time of supply
- Claims are for goods/services accepted by the buyer
Documents typically required
- Udyam registration
- Invoice(s) and proof of delivery/acceptance
- Buyer details
- Bank statement showing non-receipt
The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.