VIVAD
SE VISHWAS II - GOVERNMENT SCHEME
News:
Govt. unveils draft
dispute settlement scheme
What's
in the news?
●
The Finance Ministry released the contours
of a proposed voluntary settlement
scheme to bring to an end the long-festering contractual disputes of government agencies.
Vivad
Se Vishwas II (Contractual Disputes) scheme:
●
It is the “one time settlement” scheme between the litigating parties to bring
finality to the contractual dispute settlement and is proposed to be
implemented through an online functionality on the Government e-Marketplace
(GeM) portal.
Features:
●
The scheme will offer settlement for all
disputes with Central government
agencies, including autonomous bodies, public sector banks and financial
institutions, central public sector firms, union territories and the National
Capital Territory of Delhi and their agencies.
●
In addition, it will also cover all organisations where the central
government has a shareholding of 50% like Metro Corporation.
○
However, these bodies can opt out of the
Scheme at their discretion with approval of the Board of Directors.
●
It is aimed at promoting ease of doing business and will cover disputes up to 30
September 2022.
●
The scheme will be implemented through Government e-Marketplace (GeM), which
shall provide an online functionality for the same.
●
The Scheme proposes graded settlement
terms depending on pendency level of the dispute.
Exceptions:
●
The Scheme is proposed to cover only domestic arbitration and not
international arbitration.
●
However, disputes, where claims are raised
against procuring entities along with some other party like the State
Government or private party will not be
eligible under the scheme.
●
Besides, disputes having only financial claims against the
procuring entities will be settled through this scheme