Parliament passes MSME Amendment Bill to curb payment delays

Parliament has passed the MSME Development (Amendment) Bill, 2026, mandating faster payments through TReDS, quicker dispute resolution and decriminalisation of minor compliance violations. The legislation seeks to improve liquidity for MSMEs and strengthen the ease of doing businessIANSIANS

New Delhi: Parliament has approved the Micro, Small and Medium Enterprises Development (Amendment) Bill 2026, aimed at addressing payment delays faced by MSMEs and simplifying dispute resolution, with the Lok Sabha passing the Bill on Friday after the Rajya Sabha cleared it on Monday.

The Bill was moved in the Lower House by Minister of MSME. Jitan Ram Manjhi. The new legislation makes it mandatory for Central Public Sector Enterprises to settle all procurement invoices through the Trade Receivables Discounting System to improve cash flows for MSMEs.

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It mandates that in the case of disputes mediation must be completed within 90 days and requires courts to release at least 50 per cent of disputed awarded amounts to MSMEs if an appeal lingers past six months.

It also shifts minor registration or reporting defaults from criminal convictions to graded administrative warnings and monetary fines starting from Rs 1,000 up to Rs 1,00,000.

After passing the Bill amid the ruckus created by the Opposition, the presiding Officer Dilip Saikia tried to run the House and appealed to the protesting members to allow the House to function.

He expressed displeasure over the disruptions, stating that such protests are not appropriate for the country’s democratic system. Saikia said that repeatedly bringing posters and banners and obstructing the proceedings hampers the functioning of the House.

The Presiding officer urged the members to go back to their seats and engage in constructive dialogue, adding that they would be given full opportunity to raise their issues. He reiterated that maintaining the dignity of the House is the responsibility of all members and proceedings must be conducted smoothly.

Parliamentary Affairs Minister Kiren Rijiju expressed concern over the Opposition’s conduct, saying that Home Minister Amit Shah always comes to Parliament during the session and remains present till late night.

As the uproar continued, the Presiding Officer adjourned the House for the day to meet again at 11:00 AM on Monday.

Earlier, when the House met at 11 a.m., Lok Sabha Speaker Om Birla paid rich tributes to the freedom fighters and martyrs of the Quit India Movement as August 9 marks the 84th anniversary of the movement.