NFDC Payment Delays Leave MSMEs Struggling for Dues.

NFDC’s Pending Payments Pain

• Small Firms, Big Betrayal

• MSME Rights Ignored

Unmesh Gujarathi
Sptouts News Network

In a development that raises serious concerns over the enforcement of statutory protections for small enterprises, multiple MSMEs empanelled with the National Film Development Corporation (NFDC) Ltd. have alleged significant delays and denials in payments. These firms claim their invoices, despite being legally compliant, have been pending for months—violating the MSME Development Act, 2006.

The Act mandates that payments for goods and services provided by MSMEs must be settled within 45 days. However, suppliers say NFDC Ltd has repeatedly flouted this requirement, leaving them in a state of financial distress.

• Delayed Payments Undermine MSME Act and Public Procurement Norms

Many of these enterprises, officially empanelled to deliver services to NFDC Ltd, accuse the organization of bypassing legal and ethical standards. Several MSMEs told Sprouts News that their repeated attempts at follow-ups have either been ignored or met with intimidation.

“This is nothing short of financial terrorism,” said one MSME representative, requesting anonymity. “The government promotes MSMEs as the backbone of the economy, but this betrayal from a public sector unit reveals the ground reality.”

Sources say dozens of vendors are now stuck with unpaid dues running into lakhs. The situation has not only disrupted their operations but has also impacted their ability to pay staff, repay loans, and manage day-to-day business expenses.

• Financial Stress on Small Businesses Threatens Economic Stability

Industry experts point out that such violations by government-linked institutions strike at the very foundation of the public procurement system. “When statutory protections like the MSME Act are ignored by PSUs, it damages confidence across the small business ecosystem,” said a Mumbai-based analyst while speaking to Sprouts News.

For a sector that employs millions and contributes nearly 30% to India’s GDP, delayed payments can be devastating. These challenges are compounded by rising operational costs, limited credit access, and a post-pandemic recovery still underway.

NFDC Ltd’s continued silence has further aggravated tensions. Despite multiple requests from media—including Sprouts News—the corporation has not issued any public statement on the matter.

Also Read: Trump’s Tariffs War Threaten India’s Pharma Export Power.

• MSMEs Demand Government Intervention and Legal Recourse

As India pushes forward with its vision for an inclusive and robust economy, the government must ensure that urban development policies and procurement practices align with the rights of its small businesses. Without that assurance, the credibility of both governance and economic reform efforts remains at risk.