MSME ODR Scheme Explained | Recover Your Delayed Payments Online | Digital Portal Launched by Govt.

Описание: MSME ODR Scheme Explained | Recover Your Delayed Payments Online | Digital Portal Launched by Govt

If you are a Micro or Small Enterprise (MSE) facing delayed payments from your buyers, you are not alone. As per the Ministry of MSME, delayed payments have been a serious, recurring issue for MSMEs across India, impacting their cash flow, operations, and growth potential.

To tackle this, the Government of India has launched a revolutionary solution – the MSME ODR Scheme (Online Dispute Resolution for Delayed Payments) under the RAMP Programme, supported by the World Bank. MSME ODR portal can be accessed through - https://odr.msme.gov.in/.

What is MSME ODR Scheme?
The MSME ODR Portal is India’s first 100% online, government-owned, legally enforceable payment recovery platform for Micro and Small Enterprises under the MSMED Act, 2006. It enables MSEs to file payment recovery cases digitally, negotiate with buyers, and if needed, proceed to conciliation and arbitration – all from anywhere in India.

This is not just an administrative portal—it is a statutory legal mechanism backed by law:

1) Section 15, MSMED Act, 2006 – Buyer must make payment within 45 days of acceptance of goods/services.

2) Section 16, MSMED Act, 2006 – Delayed payments attract compound interest at three times the RBI bank rate.

3) Section 18, MSMED Act, 2006 – Disputes are resolved by the Micro & Small Enterprises Facilitation Council (MSEFC); the award is enforceable like a civil court decree.


Key Objectives of the Scheme
The MSME ODR Scheme/ODR Portal has been designed to:
1) Provide a fast, transparent, and cost-effective dispute resolution mechanism for delayed payments.
2) Digitise the entire process – from filing to enforcement.
3) Strengthen MSEFCs with technology, legal resources, and IT infrastructure.
4) Ensure time-bound resolution of payment disputes.

Features & Benefits of MSME ODR
The scheme offers multiple advantages for MSMEs:
1) 100% Online Case Filing – No physical visits required; cases can be filed from anywhere.
2) Automated Case Management – E-file creation, automated notices, timeline tracking, and real-time updates.
3) Digital Guided Pathway (AI-Powered) – AI suggests likely settlement outcomes based on facts, law, and past precedents.
4) Unmanned Negotiation – Confidential, voluntary, system-assisted discussions between buyer and seller.
5) Statutory Conciliation & Arbitration – If no settlement, the matter moves to MSEFC for legal resolution.
6) Legally Binding Outcomes – Settlement agreements and arbitral awards are enforceable like a court decree.
7) Financial Assistance – Government provides up to ₹4,000 per MSE to cover documentation and application fees.
8) Transparency & Accessibility - Case Tracking and online help.
9) Time-Bound Process –
A) Pre-MSEFC Stage (Negotiation): 15–30 days.
B) MSEFC Stage (Conciliation + Arbitration): Target of 90 days.
MSME ODR Process – From Negotiation to Award

The MSME ODR Scheme follows a two-stage process to resolve delayed payment disputes:

1) Pre-MSEFC Stage (Voluntary Settlement) – The dispute begins with a Digital Guided Pathway, where an AI-enabled system analyses case facts, predicts probable outcomes, and suggests settlement terms. Parties may accept, reject, or modify these terms. If required, they proceed to Unmanned Negotiation, a direct, confidential discussion between buyer and seller without a mediator. Any agreement reached is formalized as a legally binding settlement. (Timeline: 15–30 days)

2) MSEFC Stage (Statutory Legal Process) – If no settlement is reached, the case moves to Conciliation/Mediation before the MSEFC or its empanelled institutions. A successful settlement is recorded as a Consent Agreement enforceable like a decree. If conciliation fails, the matter proceeds to Statutory Arbitration under Section 18 of the MSMED Act. An arbitrator conducts the entire process online—pleadings, evidence, hearings—and issues a binding award, enforceable in court through an Execution Petition.

The MSME ODR Scheme is a game-changing legal remedy that gives Micro and Small Enterprises a direct, time-bound, and fully digital path to recover delayed payments.

TIME STAMPS :

00:00 - Introduction to MSME ODR Scheme
01:42 - How MSME ODR Portal Works
02:48 - Stages under MSME ODR Portal
06:54 - Additional Govt. Support
07:29 - Closing and Contact Details

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For discussing any issue related to MSME ODR you can contact us at -

Website -https://www.bakshiandassociates.com/ & https://msmeodr.com/

Mobile - 7982637108, 9873750515, 9811680103, 9811099501 and 9953030208.

E-mail ID - [email protected], [email protected], [email protected] & [email protected],

Jai Guru Ji. Shukrana Guruji.

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