New Delhi, Jun 20 (KNN) The government is set to launch an Online Dispute Resolution (ODR) mechanism next week to resolve delayed payment issues faced by micro and small enterprises (MSEs), officials have confirmed.

Currently, the Samadhaan portal allows MSEs to register complaints about delayed payments but offers limited digital features.

The upcoming ODR system will enhance this by enabling parties to submit supporting documents digitally right from the complaint stage.

The entire process — from filing to sending notices and conducting hearings — will be digitised for greater efficiency and transparency.

A government official stated, “The scheme promotes document-only dispute resolution, similar to commercial cases where written records take precedence over verbal submissions.” MSEs will also benefit from concessions in application, documentation, and other procedural fees.

The initiative falls under the MSME Development Act and aims to reinforce the role of Micro and Small Enterprises Facilitation Councils (MSEFCs), which were established under the same Act.

These councils will receive financial assistance to strengthen their legal and technological infrastructure, improving institutional support for small businesses.

According to the MSMED Act, buyers are mandated to clear payments to MSE suppliers within 45 days. Failure to do so makes them liable to pay interest. The new ODR mechanism will help enforce this provision more effectively.

Additionally, the government is integrating artificial intelligence into the process, offering parties the option to resolve disputes through an AI-facilitated system before approaching MSEFCs.

This step is expected to reduce case backlogs and make the dispute resolution system more accessible and efficient for small businesses.

(KNN Bureau)