New Delhi: Parliament has passed the Micro, Small and Medium Enterprises (MSME) Development (Amendment) Bill, 2026, introducing key reforms aimed at ensuring timely payments to MSMEs and making the dispute resolution process faster and more business-friendly.
The Bill was approved by the Lok Sabha on Friday after receiving clearance from the Rajya Sabha earlier this week. It was introduced in the Lower House by MSME Minister Jitan Ram Manjhi.
A key provision of the new law makes it mandatory for Central Public Sector Enterprises (CPSEs) to process procurement invoices through the Trade Receivables Discounting System (TReDS), a move intended to improve cash flow and reduce payment delays for micro, small, and medium enterprises.
The legislation also introduces strict timelines for dispute resolution. It requires mediation in payment-related disputes to be completed within 90 days. Additionally, if an appeal against an award remains pending for more than six months, courts must release at least 50% of the awarded amount to the MSME concerned, providing businesses with quicker financial relief.
Another significant reform decriminalises minor registration and reporting violations. Instead of criminal prosecution, such offences will now attract graded administrative warnings and monetary penalties ranging from ₹1,000 to ₹1 lakh.
The Bill was passed amid noisy protests by Opposition members, which disrupted proceedings in the Lok Sabha. Presiding Officer Dilip Saikia appealed to members to maintain order and allow the House to function, stating that repeated disruptions, banners, and slogans were not in keeping with the spirit of parliamentary democracy.
He urged protesting MPs to return to their seats and assured them they would be given an opportunity to raise their concerns through proper parliamentary procedures. Emphasising the need to uphold the dignity of the House, Saikia called on all members to ensure the smooth conduct of business.
Parliamentary Affairs Minister Kiren Rijiju also criticised the Opposition’s conduct, saying Home Minister Amit Shah regularly attends Parliament during sessions and remains present until late at night.
With the uproar continuing, the Chair adjourned the Lok Sabha for the day, with the House scheduled to reconvene at 11:00 a.m. on Monday.
Earlier in the day, Lok Sabha Speaker Om Birla paid tribute to the freedom fighters and martyrs of the Quit India Movement, marking the 84th anniversary of the historic movement on August 9.
