On October 17, the Pune District Administration initiated critical recovery proceedings, seeking to recover approximately Rs 1.77 crore through property auction from Softtech Engineers Ltd, an IT services provider company based on Baner Road.
The company, led by Vijay Gupta, found itself in this predicament due to non-payment issues arising from an order delivered by the MSME Facilitation Council, MP. The complaint was filed by C-Net Infotech P Ltd, an IT service company located in Bhopal, which reported that Softtech had failed to honor its financial obligations to the council.
The MSME Facilitation Council, MP, issued RRC (Recovery of Revenue Certificate) orders on September 27, 2023, demanding the recovery of Rs 1.55 crore, inclusive of accrued interest until the date of payment, from Softtech Engineers Ltd, Pune.
In accordance with the RRC orders, which received the endorsement of the Bhopal Collector, the Pune District Administration issued a recovery notice amounting to Rs 1.77 crore against Softtech Engineers Ltd. The notice provides a seven-day window for compliance.
This case reflects a broader issue prevalent across the country, where Micro, Small, and Medium Enterprises (MSMEs) often encounter difficulties in receiving legitimate payments from both private and government entities.
India boasts the world’s second-largest MSME ecosystem, encompassing 6.3 crore enterprises that play a pivotal role in realizing the vision of Atmanirbhar Bharat. Collectively, these enterprises contribute 30% to the nation’s GDP and 50% to exports, generating a significant number of employment opportunities.
However, a major growth challenge for the majority of India’s 6.3 crore MSMEs lies in payment delays from buyers for their sold goods. According to a report by the Global Alliance for Mass Entrepreneurship (GAME), Indian MSMEs have an astounding Rs 10.7 lakh crore stuck in pending payments, often from public sector and corporate buyers.
Despite the Indian Government’s various initiatives, including the MSMED Act of 2006 and the launch of the MSME Samadhan Portal, delayed payments continue to be a significant issue for MSEs (Micro and Small Enterprises) in the country.
