Sri Vijaya Puram, Aug. 7: Parliament has approved the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, introducing measures aimed at reducing payment delays for micro, small and medium enterprises (MSMEs), strengthening cash flow mechanisms and simplifying dispute resolution. The Lok Sabha passed the legislation today after it was cleared by the Rajya Sabha on Monday.
The Bill was introduced in the Lok Sabha by MSME Minister Jitan Ram Manjhi. Among its key provisions, the legislation makes it mandatory for Central Public Sector Enterprises (CPSEs) to settle all procurement invoices through the Trade Receivables Discounting System (TReDS), a move intended to improve liquidity and ensure faster payments to MSMEs.
The legislation also introduces a time-bound mechanism for dispute resolution. It mandates that mediation in disputes involving MSMEs must be completed within 90 days. Additionally, if an appeal against an award remains pending for more than six months, courts will be required to release at least 50 per cent of the disputed awarded amount to the concerned MSME.
The Bill further revises the compliance framework by replacing criminal convictions for minor registration or reporting violations with graded administrative warnings and monetary penalties. Under the amended provisions, fines will range from Rs 1,000 to Rs 1,00,000, depending on the nature of the default.
The Lok Sabha passed the legislation amid protests by Opposition members. During the proceedings, Presiding Officer Dilip Saikia appealed to protesting members to allow the House to function, stating that repeated disruptions, including displaying posters and banners, were not appropriate in a democratic system and affected parliamentary proceedings.
Saikia urged members to return to their seats and participate in constructive discussions, assuring them that they would receive adequate opportunity to raise their concerns. He said maintaining the dignity of the House was the collective responsibility of all members and stressed the need for the smooth conduct of business.
Parliamentary Affairs Minister Kiren Rijiju also expressed concern over the Opposition’s conduct, stating that Home Minister Amit Shah regularly attends Parliament during the session and remains present until late at night.
As disruptions continued, the Presiding Officer adjourned the House for the day. The Lok Sabha will reconvene at 11 a.m. on Monday.
Earlier in the day, when the House assembled at 11 a.m., Lok Sabha Speaker Om Birla paid tributes to the freedom fighters and martyrs of the Quit India Movement ahead of its 84th anniversary on August 9.
