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CS Executive · Setting Up of Business, Industrial and Labour Laws · Micro, Small and Medium Enterprises

Ramesh runs a small enterprise as a sole proprietor in Pune and wishes to wind up his business through the statutory closure Scheme. Which authority is empowered to notify the Scheme under the MSMED Act, 2006?

The Central Government notifies the closure Scheme. Section 25 of the MSMED Act, 2006 gives it the power to notify a Scheme facilitating closure of business by MSMEs. The Facilitation Council handles payment disputes and the State Government has no such power under this section.

  1. AThe State Government through its Director of Industries
  2. BThe Micro and Small Enterprises Facilitation Council
  3. CThe Central GovernmentCorrect
  4. DThe Advisory Committee

Explanation

Section 25 states that the Central Government may notify the Scheme for closure. The Facilitation Council deals with delayed payment disputes, and the State Government is not given this power in the section.

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