Section 31 of MSMED : Section 31: Power To Remove Difficulties

Explanation using Example

Imagine a scenario where the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) has been enacted to provide for the promotion and development of micro, small and medium enterprises. However, after its enactment, there is confusion regarding the classification criteria for enterprises due to an unforeseen overlap between the definitions of 'small' and 'medium' enterprises.

To address this issue, the Central Government decides to exercise its power under Section 31 of the MSMED Act. It issues an order clarifying the criteria, ensuring that the definitions are distinct and do not overlap. This order is published in the Official Gazette to give it legal effect, and subsequently, it is presented before both Houses of Parliament to maintain legislative oversight. This action helps in removing the difficulty faced by the enterprises in categorizing themselves and aids in the effective implementation of the Act.