Pune District Administration Initiates Recovery Proceedings Against Softtech Engineers Ltd for Rs 1.77 Crore Default
Pune, 30th October 2023: The Pune District Administration took a decisive step on October 17 by initiating recovery proceedings for approximately Rs 1.77 crore through the auction of property against Softtech Engineers Ltd, a Baner Road-based IT services provider company.
The company, led by Vijay Gupta, faced this action due to defaulting on payments against an order from the MSME Facilitation Council, MP. The case was registered by Bhopal-based IT service company C-Net Infotech P Ltd, which reported non-payment of dues by Softtech to the council.
The MSME Facilitation Council, MP, issued RRC orders on September 27, 2023, for the recovery of Rs 1.55 crore, along with interest accrued until the date of payment, against Softtech Engineers Ltd of Pune.
Acting on the RRC orders endorsed by Collector Bhopal, the District Administration Pune issued a recovery notice amounting to Rs 1.77 crore against Softtech Engineers Ltd, providing a seven-day window for compliance.
This case is emblematic of numerous instances across the country where MSMEs face challenges in receiving genuine payments from various private and government entities.
India boasts the world’s second-largest MSME ecosystem, comprising 6.3 crore enterprises that play a pivotal role in the vision of Atmanirbhar Bharat. They collectively contribute 30% to the country’s GDP and 50% to exports, generating significant employment opportunities.
However, a predominant growth challenge for the majority of the 6.3 crore MSMEs in India is payment delays from buyers for goods sold. According to a report by GAME (Global Alliance for Mass Entrepreneurship), Indian MSMEs have a staggering Rs 10.7 lakh crore stuck in payments, often from public sector and corporate buyers.
Despite the Government of India’s initiatives, including the introduction of the MSMED Act 2006 and the launch of the MSME Samadhan Portal, delayed payments remain a significant issue for MSEs in India.
