Jaipur: More than 3,900 MSME payment disputes are pending before facilitation councils in Rajasthan, underlining persistent delays in settling cases and releasing funds despite an increase in the number of councils.Industry representatives said delayed payments have become a serious hurdle for small businesses already under pressure from tight working capital. They said most defaulting buyers are govt departments, especially power distribution companies, PWD, PHED and the medical and health department.The number of MSME facilitation councils has increased from one to 14 over the years to handle the rising caseload. Recently, general managers of District Industries Centres (DICs) were empowered to hear disputes that were earlier decided by collectors.A representative of an industry body said, “For a dispute, there is no cap on number of hearings. That’s why many cases are dragging on, causing delays in other cases.”Industry department officials said more than 60% of the disputes involve govt departments. The representative said councils appear reluctant to issue orders against govt agencies within a few hearings, even when cases are clear.Disputes of up to Rs 25 lakh are heard at the DIC level. Cases between Rs 25 lakh and Rs 75 lakh go to the additional commissioner, while disputes above Rs 75 lakh are heard by the industries commissioner.Under MSME rules, small enterprises must be paid within 45 days of supplying goods or services. Payments are often withheld when buyers claim the goods or services did not meet agreed specifications, forcing MSMEs to approach facilitation councils.
