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

Which statement about the time limit for notifying the closure Scheme under Section 25 of the MSMED Act, 2006 is correct?

The Scheme is to be notified within one year from the date of commencement of the Act. Section 25 sets this period. The 180-day period concerns filing of memoranda by existing units, and the ninety-day period concerns deciding references before the Facilitation Council.

  1. AThe Scheme must be notified within one year from the date of commencement of the ActCorrect
  2. BThe Scheme must be notified within 180 days of commencement of the Act
  3. CThe Scheme must be notified within ninety days of a reference to the Facilitation Council
  4. DThe Scheme may be notified at any time with no time limit

Explanation

Section 25 says the Central Government may notify a Scheme within one year from the date of commencement of the Act. The 180 days relates to filing memoranda by pre-existing units under Section 8, and the ninety days relates to deciding references under Section 18.

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