lok-sabha-clears-msme-bill-to-curb-payment-delays-disputes

Parliament on Friday approved the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, with the Lok Sabha clearing the legislation days after it was passed by the Rajya Sabha. The Bill seeks to tackle chronic payment delays faced by micro, small and medium enterprises (MSMEs) while introducing a faster and more structured dispute resolution mechanism.

 

The legislation, moved by MSME Minister Jitan Ram Manjhi, mandates that Central Public Sector Enterprises (CPSEs) route procurement invoice payments through the Trade Receivables Discounting System (TReDS), a move aimed at improving liquidity and ensuring quicker payments to small businesses.

 

Among the key provisions, the Bill requires mediation in payment disputes to be completed within 90 days. It also provides relief to MSMEs involved in prolonged litigation by directing courts to release at least 50 per cent of the disputed award amount if an appeal remains pending for more than six months.

 

The amended law also decriminalises minor registration and reporting violations. Instead of criminal prosecution, such lapses will now attract graded administrative action, beginning with warnings and monetary penalties ranging from ₹1,000 to ₹1 lakh.

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The Bill was passed amid repeated disruptions by Opposition members in the Lok Sabha. Presiding Officer Dilip Saikia urged protesting MPs to return to their seats, saying frequent displays of placards and slogans disrupted the functioning of the House and were inconsistent with parliamentary decorum. He appealed to members to raise their concerns through debate, assuring them adequate opportunity to do so.

 

Parliamentary Affairs Minister Kiren Rijiju also criticised the Opposition's protests, stating that Home Minister Amit Shah had been regularly attending the House during the ongoing session and remained available for discussions.

 

As the uproar continued, the Chair adjourned the House for the day until Monday.

 

Earlier, Lok Sabha Speaker Om Birla paid tributes to freedom fighters ahead of the 84th anniversary of the Quit India Movement, observed on August 9.