New Delhi, August 7, 2026 (Yes Punjab News)
Parliament on Friday approved the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, aimed at improving cash flows for MSMEs, reducing payment delays and simplifying dispute resolution mechanisms.
The Lok Sabha passed the Bill on Friday after it was cleared by the Rajya Sabha earlier this week. The legislation was introduced in the Lower House by Union Minister for Micro, Small and Medium Enterprises Jitan Ram Manjhi.
Under the amended provisions, Central Public Sector Enterprises will be required to settle procurement invoices through the Trade Receivables Discounting System (TReDS), a move aimed at ensuring faster payments and improving liquidity for small businesses.
The Bill also provides a time-bound mechanism for resolving disputes involving MSMEs. It mandates completion of mediation proceedings within 90 days. In cases where an appeal remains pending beyond six months, courts will be required to release at least 50 per cent of the awarded disputed amount to MSMEs.
The legislation further proposes replacing criminal penalties for minor registration and reporting-related defaults with graded administrative measures. The revised framework includes warnings and monetary penalties ranging from Rs 1,000 to Rs 1 lakh, depending on the nature of the violation.
The Bill was passed amid disruptions by Opposition members in the Lok Sabha. Presiding Officer Dilip Saikia appealed to protesting MPs to allow the House to function, expressing concern over repeated disruptions caused by posters and banners.
Saikia urged members to return to their seats and participate in constructive discussions, assuring that they would be given opportunities to raise their concerns. He stressed that maintaining the dignity and smooth functioning of Parliament was the collective responsibility of all members.
Parliamentary Affairs Minister Kiren Rijiju also criticised the Opposition’s conduct and said Home Minister Amit Shah regularly attends Parliament during sessions and remains present for extended hours.
Following continued protests, the presiding officer adjourned the House for the day, with proceedings scheduled to resume at 11 am on Monday.
Earlier in the day, when the Lok Sabha met at 11 am, Speaker Om Birla paid tributes to freedom fighters and martyrs of the Quit India Movement ahead of its 84th anniversary on August 9.
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