MNCs default: Small businesses see red

According to officials,since 2008,the Industries Department has received 21 cases of default in the Pune region,of which 18 are from the Pune district. Two cases have been received from Sangli and one from Satara district.

Officials said seven cases,with a transaction value of Rs 4.32 crore have been resolved and purchasers have been asked to make the payments with interest penalty,which is three times more than the current market rate. In another case involving a transaction value of Rs 3.65 lakh,an amicable settlement was reached between the unit holder and the buyer. The rest are under review,they said.

Joint director,industries (Pune region),M V Bhagat,said,“We have set up one facilitation council,with the additional commissioner (revenue) as chairman,for the Pune region.” He added that the quasi-judicial council meets at least once in two months to decide on the cases,which are disposed of within three months.

General manager of District Industries Centre,Pune,S S Survase said under the MSME Act,the purchaser has to make the payment within 90 days of the order,failing which the government imposes a penalty on them. He added that instead of the default cases going to courts where hearings take time,they are being taken to the facilitation council,which solves them in a time-bound manner.

Deepak Karandikar,chairman of Micro,Small and Medium Enterprises Committee of Maharatta Chamber of Commerce Industries and Agriculture (MCCIA),said the number of default cases may be higher than those referred to redressal forums. “Business interests may deter many medium and small businesses from filing cases against big companies. The owner signs a written order with the big firm,which specifies the time by which the payment has to be made.”