Overview
- The Upper House approved the amendment on Monday, August 3, 2026, by voice vote after defeating INDIA bloc amendments and then adjourned because Opposition members continued to protest.
- A central change lets courts order buyers to deposit at least 50% of an awarded amount when a challenge to an order remains pending for more than six months, aimed at preventing long delays in supplier payments.
- The law allows recovery of mediated settlements and arbitral awards as arrears of land revenue so state collectors can recover dues from buyers through district authorities.
- It requires the government to set up a national digital MSME registration platform and proposes that Central Public Sector Enterprises route MSME invoice settlements through the Trade Receivables Discounting System to improve liquidity.
- The passage clears a key step for faster enforcement of payments for millions of small firms but leaves political tensions unresolved in Parliament and the bill now awaits further legislative or formal approval before becoming law.