MSME Samadhaan: Recover Stuck Payments with 3x Interest

Principal + 3x bank rate compound interestGovernment of IndiaLegal Right45-Day RuleLast reviewed: Aug 2026

What Is This?

Under the MSMED Act, a buyer is legally required to pay an MSME supplier within 45 days. If they don't, you can file a case on the MSME Samadhaan portal — and the buyer then has to pay with compound interest at 3 times the bank rate.

How Much Will You Get?

What	Details
Principal	The entire stuck payment
Interest	3x the RBI bank rate, compounded monthly — from the due date until payment

Eligibility

You had a Udyam registration at the time of supply
Proof of invoice/PO/delivery
Payment has been stuck beyond 45 days (or a shorter written agreement, whichever is less)

How to File

Log in at samadhaan.msme.gov.in with your Udyam number
Upload buyer details, invoices, and delivery proof
The application goes to the MSE Facilitation Council (MSEFC)
Council conciliation → arbitration; the award is legally enforceable

Crores of rupees owed to Noida's auto-component and electronics units that supply large OEMs have been stuck for 90+ days. Often, just the threat of a Samadhaan notice gets the payment released.

Keep in mind: filing a case in an ongoing business relationship can affect it. Go step by step — first a written reminder → then a legal notice → then Samadhaan.

Frequently Asked Questions

How long does it take?

The law targets 90 days; in practice it can take longer due to the load on councils. Even so, it's much faster than civil court.

Can the buyer show the interest as an expense?

No — under the MSMED Act, this interest is not tax-deductible for the buyer. That's what keeps pressure on buyers to settle.

Need help filing a payment recovery case?

ClaimDesk (A NorthStar Advisors brand, Noida) handles everything from documentation to filing and follow-up. The first conversation is completely free.

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MSMEUP.com is independent information & tools — free, and not run by any consultancy. ClaimDesk is a separate, private consultancy (a NorthStar Advisors brand) for those who want professional filing help; its fee is for that service, not a government charge, and using it is entirely optional — MSMEUP's guides and tools work the same with or without it.

Official Source
Official portal: samadhaan.msme.gov.in Last reviewed: Aug 2026

This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.