Ministry of Finance Extends Vivad se Vishwas II Scheme Deadline for Government Contract Disputes
In a significant development, the Ministry of Finance announced on Thursday its decision to extend the deadline for submitting claims under the Vivad se Vishwas II scheme by two months, now allowing contractors until December 31, 2023, to settle pending disputes related to government contracts. The scheme, launched on July 15, aims to provide a resolution framework for disputes in government contracts, with the initial deadline for claims set at October 31.
The Vivad se Vishwas II scheme is applicable to all domestic contractual disputes involving either the government of India or government undertakings. The extension comes as a response to the ongoing challenges faced by contractors in meeting the original deadline and to facilitate a smoother resolution process.
According to the Department of Expenditure, the decision to extend the deadline was made to accommodate the practicalities faced by stakeholders. "It has been decided that the claims under the Vivad se Vishwas II scheme can now be submitted till December 31, 2023," stated the department.
Under the provisions of the scheme, for court awards passed on or before April 30, 2023, contractors may receive a settlement amount of up to 85 percent of the net amount awarded or upheld by the court. Similarly, for arbitral awards passed on or before January 31, 2023, the settlement amount offered is up to 65 percent of the net amount awarded.
To streamline the process, the Government e-Marketplace (GeM) has established a dedicated webpage for the execution of this initiative. Only eligible claims will be handled via GeM. Contractors engaged in non-GeM contracts with the Ministry of Railways are required to register their claims on the railway’s e-procurement system portal, IREPS.
This extension reflects the government's commitment to providing a fair and efficient mechanism for resolving contractual disputes and underscores its responsiveness to the challenges faced by stakeholders. The move is expected to provide contractors with additional time to navigate the complexities of the claims process, ultimately contributing to a more effective and equitable resolution of pending disputes in government contracts.
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