Overview
- Parliament completed approval of the Micro, Small and Medium Enterprises Development (Amendment) Bill when the Lok Sabha passed it on Friday after the Rajya Sabha cleared it on Monday, finalizing the new law.
- The law requires Central Public Sector Enterprises to settle procurement invoices through the Trade Receivables Discounting System (TReDS) so suppliers can convert unpaid invoices into cash faster.
- The Bill mandates fixed dispute timelines with 90 days for mediation, 30 days to refer failed mediation to arbitration, and 90 days for an arbitral award, and it empowers courts to order at least 50% of awarded amounts paid if an appeal delays enforcement for more than six months.
- Minor registration and reporting breaches are removed as criminal offences and replaced by graded administrative inquiries and fines ranging from Rs 1,000 to Rs 100,000 under the new compliance framework.
- The measure passed in a shortened Lok Sabha sitting disrupted by protests, and officials must now issue implementation rules and portals for TReDS use, online dispute resolution, and the new Development Commissioner role before the changes take effect.