Lok Sabha Question No. 177 (UNSTARRED), answered on 2025-07-21
Subject: Action against Companies not paying Dues
Ministry: CORPORATE AFFAIRS
Asked by: Dr. Thirumaavalavan Tholkappiyan

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

LOK SABHA UNSTARRED QUESTION NO. 177 ANSWERED ON Monday, July 21, 2025 Ashadha 30, 1947 (Saka)

Action Against Companies Not Paying Dues

177. Shri Dr. Thirumaavalavan Tholkappiyan

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the Government has any data about the amount due to the Medium and Small Enterprises by Companies that are to submit MSME-I form;
- (b) if so, the details thereof;
- (c) the actions taken against the companies that have been keeping the dues unpaid for a period exceeding 45 days; and
- (d) if so, the details thereof?

## ANSWER

Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways

(Shri Harsh Malhotra)

- (a) to (d): The Government has taken a number of initiatives to support the MSMEs:
- (i) In terms of section 405 of the Companies Act, 2013 r/w notification no. S.O.  368(E)  dated  22.01.2019,  MSME  1  form  has  been  prescribed  for specified companies to disclose details of all outstanding dues to Micro or Small enterprises suppliers. Every specified company is mandated to file a return  as  per  MSME-1  form  by  31 st   October  for  the  period  from  April  to September  and  by  30 th   April  for  the  period  from  October  to  March.  The form MSME-1 has been re-notified vide notification no. S.O. 2751 (E) dated 15.07.2024.  Further,  the  Companies  Act,  2013  does  not  contemplate settlement of dues of the creditor's including MSMEs.
- (ii) If any company fails to comply with an order made under section 405 sub-section (1) or sub-section (3), or furnishes any information or statistics which is incorrect or incomplete in any material respect, the company and

every officer of the company who is in default shall be liable to a penalty of twenty thousand rupees and in case of continuing failure, with a further penalty of one thousand rupees for each day after the first during which such failure continues, subject to a maximum of three lakh rupees. (iii)  On  the  basis  of  the  last  half-yearly  MSME-1  returns  filed  for  period October 2024 to March 2025 filed in the MCA21 portal, a total of 46,562 companies having reported dues of around Rs. 61,770 crores pending for less than 45 days and around Rs. 22,730 crores pending for more than 45 days. (iv) Ministry of MSME  launched a portal viz. SAMADHAAN  Portal (https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC\_Welcome.aspx) for  filing  of  grievances  &  for  monitoring  of  the  outstanding  dues  to  the Micro & Small Enterprises (MSEs) from the buyers of goods and services on 30.10.2017. As per the information available on the SAMADHAAN Portal since  inception  on  30.10.2017  till  17.07.2025,  the  amount  involved  in pending applications is Rs. 22,363.40 crore. (v)  Under  the  provisions  of  the  MSMED  Act,  2006,  Micro  &  Small Enterprises  Facilitation  Councils  (MSEFCs)  have  been  set  up  in  the States/UTs to deal with cases of delayed payments of the Micro and Small Enterprises (MSEs). So far, 161 MSEFCs have been set up in the country with more than one MSEFC in Delhi, Jammu & Kashmir, Karnataka, Kerala, Maharashtra,  Punjab,  Rajasthan,  Tamil  Nadu,  Telangana,  Uttar  Pradesh and West Bengal. (vi)  A  special  Sub-Portal has been created within SAMADHAAN Portal on 14.06.2020, after the Aatma Nirbhar Bharat announcements, for reporting the  dues  and  monthly  payments  by  Central  Ministries/Department/Public Sector Enterprises to MSMEs. (vii)  Section  43B  (h)  of  the  Income-tax  Act  1961  provides  that  any  sum payable by the assessee to an MSME beyond the time limit specified in section 15 of the MSMED Act 2006, which cannot be more than 45 days, shall be allowed as a deduction only on actual payment. (viii)  Government  of  India  has  also  instructed  CPSEs  and  all  companies with the turnover of Rs. 250 Crore or more to get themselves on-boarded on the Trade Receivables Discounting System, an electronic platform for facilitating the discounting of trade receivables  of  MSMEs  through multiple financiers.

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