In a significant policy update, the Ministry of Micro, Small and Medium Enterprises (MSME) has announced that sole traders are now eligible to file payment delay complaints through the MSME Samadhaan portal. This move brings individual entrepreneurs under the formal mechanism for recovering dues from buyers, particularly government departments and large private entities that delay payments beyond the mandated 45-day period. The initiative aims to strengthen the legal and financial rights of sole proprietors who often lack the institutional support to enforce timely payments.

The MSME Samadhaan portal, originally launched in 2017, was designed to help registered micro and small enterprises file applications against defaulting buyers. With this latest inclusion, Udyam-registered sole proprietors can now lodge complaints by submitting their invoice details, business credentials, and evidence of non-payment. Once the complaint is filed, it is forwarded to the respective Micro and Small Enterprises Facilitation Council (MSEFC) at the district level for resolution. The process includes mediation and, if necessary, legal adjudication under the provisions of the MSME Development Act, 2006.

Officials emphasized that this policy expansion is crucial for improving the cash flow and financial health of sole traders, many of whom operate on tight margins and face liquidity challenges due to delayed payments. By making the redressal process digital, time-bound, and legally enforceable, the government aims to empower small business owners and ensure compliance among larger buyers. Sole proprietors are being encouraged to register on the Udyam portal and maintain formal transaction records to become eligible for Samadhaan protections. Industry observers and MSME associations have welcomed the move, stating that it creates a stronger and fairer business ecosystem for India’s smallest but most widespread business segment.