New Delhi: Parliament has approved the Micro, Small and Medium Enterprises Development (Amendment) Bill 2026, aimed at addressing payment delays faced by MSMEs and streamlining dispute resolution processes.
The Lok Sabha passed the Bill on Friday after it was cleared by the Rajya Sabha on Monday. The legislation was introduced in the Lower House by MSME Minister Jitan Ram Manjhi.
Bill aims to improve MSME cash flow
Under the new legislation, Central Public Sector Enterprises (CPSEs) will be required to settle procurement invoices through the Trade Receivables Discounting System (TReDS) to improve cash flow and ensure timely payments to MSMEs.
The Bill also introduces measures to speed up the resolution of disputes involving small businesses.
New rules for dispute resolution and penalties
The amendment mandates that mediation in MSME-related disputes must be completed within 90 days.
It also provides that courts will release at least 50 per cent of disputed awarded amounts to MSMEs if an appeal remains pending beyond six months.
The legislation further changes the approach towards minor registration and reporting defaults by replacing criminal penalties with graded administrative warnings and monetary fines ranging from Rs 1,000 to Rs 1 lakh.
Bill passed amid Opposition protests
The Bill was passed amid protests and disruptions by Opposition members in the Lok Sabha.
Presiding Officer Dilip Saikia appealed to protesting MPs to allow the House to function and expressed concern over repeated disruptions. He said displaying posters and banners inside the House affects parliamentary proceedings.
Saikia urged members to return to their seats and raise their concerns through constructive discussions, stressing that maintaining the dignity of Parliament is the responsibility of all members.
Lok Sabha adjourned after continued ruckus
Parliamentary Affairs Minister Kiren Rijiju also criticised the Opposition’s conduct, saying that Home Minister Amit Shah regularly attends Parliament during sessions and remains present for proceedings.
As the uproar continued, the presiding officer adjourned the Lok Sabha for the day. The House will meet again at 11 am on Monday.
Earlier, when proceedings began, Lok Sabha Speaker Om Birla paid tribute to freedom fighters and martyrs on the occasion of the 84th anniversary of the Quit India Movement.