Haryana council to help firms recover dues

Regulatory body to have quasi-judicial powers to resolve disputes with suppliers, ancillary partners.

In order to safeguard the financial interests of micro, small and medium enterprises (SMEs), the Haryana government plans to set up a regulatory body with quasi-judicial powers. The initiative is aimed at strengthening the financial backbone of various enterprises engaged in manufacturing.

Haryana will become one of the first few states in the country to form the Haryana Micro and Small Enterprises Facilitation Council (MSEFC).

The council will be empowered by the Micro and Small Enterprises Facilitation Council Rules, 2007, that provide various inputs for proper and judicious implementation of the Micro, Small and Medium Enterprises Development Act, 2006.

The council will directly respond to small manufacturers by addressing their problems and issues that arise in the form of dispute with suppliers and ancillary partners.

According to an official source, the council will primarily deal with payments of SMEs delayed for more than 90 days. As the council will have quasi-judicial powers, its decisions will be binding on the ancillary and mother unit.

If the defendant wants to challenge the case in the civil court, it will have to deposit 75 per cent of the awarded sentence money with the plaintiff before moving the court.

According to CB Goel, ex-president, Haryana Chamber of Commerce and Industry, the initiative can be a blessing for the SMEs if the implementing machinery is given teeth to tackle the issue. He said according to the SME act, payment delayed for more than 90 days could not be shown as expenses by the mother company in its balance sheet.

"Many small players are not aware of the guidelines issued by the state and central government to benefit the SMEs. So an active body like the MSEFC will be of immense help for the small players and help them in recovering their long-standing dues.

The council, which will meet once a month, will be headed by director of the state industry and commerce department, three experts and one representative from the industry.