Telangana showcases faster resolution of MSME delayed-payment disputes at Parishrama Adalat Conclave

 

Six MSE Facilitation Councils resolve pending applications through structured conciliation; ₹8.29 crore involved across 65 cases

Hyderabad, Aug 22: In a significant initiative to strengthen payment security and ease of doing business for Micro and Small Enterprises (MSEs), the Commissionerate of Industries, Government of Telangana, in association with the MSME-DFO, Ministry of MSME, Government of India, and the Federation of Telangana Chambers of Commerce and Industry (FTCCI), organised a Parishrama Adalat Conclave on MSE Delayed Payments and Online Dispute Resolution (ODR) at Federation House, Red Hills, Hyderabad on Friday evening.

The Conclave brought together Government institutions, ADR institutions like IAMC Hyderabad, MSEFCs, TReDS platforms RXIL, M1exchange, Invoicemart and CReDX, government institutions, industry representatives, MSE Facilitation Councils, financial institutions and others.

The programme witnessed participation from all six MSE Facilitation Councils of Telangana — Ranga Reddy, Medchal-Malkajgiri, Yadadri Bhuvanagiri, Sangareddy, Hanumakonda and Karimnagar. The Councils took up and resolved a number of applications pending before them through structured conciliation and other statutory mechanisms.

The Conclave showcased tangible outcomes from delayed-payment resolution mechanisms, with 65 cases involving ₹8.29 crore taken up through conciliation, ODR and Samadhaan mechanisms.

The outcomes included 10 cheque releases involving ₹1.40 crore, 26 ODR cases involving ₹0.89 crore and 29 Samadhaan cases involving ₹6 crore.

The handing over of cheques and resolution orders during the programme added a tangible outcome-oriented dimension to the initiative, demonstrating how timely institutional intervention can help MSEs unlock working capital and continue their business operations.

The Parishrama Adalat Conclave highlighted a shift from viewing delayed-payment disputes purely as adversarial legal matters to creating a faster, structured and technology-enabled pathway for negotiated settlement.

For a Micro or Small Enterprise, a delayed payment can affect working capital, wages, procurement, statutory payments and the ability to take up new orders. At the same time, prolonged disputes can strain valuable commercial relationships.

The conciliation and ODR framework seeks to address both concerns by enabling enterprises to pursue their legitimate dues efficiently while providing an opportunity, wherever possible, to preserve continuing business relationships.

A key feature of the Conclave was the sharing of experiences by eight entrepreneurs who had benefited from structured conciliation and timely intervention in delayed-payment disputes

The programme also witnessed the release of an “ODR Success Stories” publication and the screening of an ODR awareness and success video.

Ms. Ankita Pandey, Director, RAMP, Ministry of MSME, Government of India, who graced the programme as Chief Guest, highlighted the Government of India’s efforts to strengthen the MSME ecosystem under RAMP and the role of ODR in enabling faster, transparent and cost-effective resolution of delayed-payment disputes.

Sri J. Nikhil Chakravarthi, IAS & AS, Commissioner of Industries, Government of Telangana, underlined the State Government’s commitment to improving the ease of doing business for MSEs and positioned structured conciliation as an important instrument for addressing payment-related grievances.

Sri C. S. S. Rao, Joint Director & HoO, MSME-DFO, Hyderabad, emphasised the support available to MSMEs through the Ministry of MSME and the importance of awareness and timely filing of delayed-payment claims.

Sri A. J. Jawad, CEO & Registrar, IAMC, Hyderabad, highlighted the role of mediation, arbitration and ODR in reducing the time and transaction costs associated with dispute resolution.

For an MSME, delayed payment is not merely a financial inconvenience—it can threaten the very survival of the business. Technology-enabled dispute resolution can change this by making justice faster, simpler and more accessible. The MSME ODR Portal is a welcome step towards ensuring that entrepreneurs spend less time chasing payments and more time building their businesses. We at FTCCI encourage MSMEs to make full use of this platform, Vinod Kumar Agarwal, Vice President, FTCCI

Mr. Arumurgarangarajan, Chief General Manager, PFRDA, stressed the importance of institutional collaboration in strengthening outreach and support to enterprises.

Sri D. Srinivas Naik, Additional Director of Industries, participated in the programme, while Sri K. Madhukar Babu, Joint Director (MSME), Government of Telangana, welcomed the gathering and set the context for the Conclave.

The Conclave also witnessed the signing of Memoranda of Understanding with the Pension Fund Regulatory and Development Authority (PFRDA) and TReDS partners — M1 Exchange, RXIL and KredX.

These partnerships are expected to strengthen coordinated outreach and awareness among enterprises regarding formal financial and payment mechanisms and enhance institutional support available to the MSE ecosystem.

The Conclave demonstrated the potential of bringing government facilitation, statutory delayed-payment mechanisms, conciliation, digital dispute resolution, financial institutions and industry within a single ecosystem.

The larger objective is not merely disposal of cases, but to enable MSEs to recover legitimate dues faster, protect working capital, reduce the cost and time associated with disputes and, wherever possible, preserve valuable commercial relationships.

 

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