New Delhi — Parliament approved the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 on Friday, introducing strict timelines for payment settlements and mandatory mediation to boost liquidity for small businesses.
The legislation passed the Lok Sabha following its earlier clearance in the Upper House. Union MSME Minister Jitan Ram Manjhi affirmed that the amended law requires Central Public Sector Enterprises to route procurement payments through the Trade Receivables Discounting System. Under the new statutory framework, dispute mediation must conclude within 90 days, and courts are empowered to release at least 50 percent of contested awarded funds to MSMEs if an appeal remains pending beyond six months.
The law also replaces criminal prosecution for minor compliance defaults with graded monetary fines ranging from ₹1,000 to ₹1 lakh.
“Repeatedly bringing posters and banners and obstructing the proceedings is not right as it hampers the functioning of the House,” Presiding Officer Dilip Saikia stated while attempting to manage proceedings amid Opposition demonstrations before adjourning the session.
Prior to the legislative business, Speaker Om Birla paid tributes to freedom fighters ahead of the 84th anniversary of the Quit India Movement.
