Vivad se Vishwas 2

August 3, 2023

In a significant move to facilitate the resolution of contractual disputes involving the government and its undertakings, the Ministry of Finance has launched the “Vivad se Vishwas 2” scheme. This initiative aims to streamline the process and promote ease of doing business while ensuring timely settlement.

Understanding Vivad se Vishwas 2

The Vivad se Vishwas 2 scheme is a voluntary settlement mechanism introduced to address contractual disputes between the Government of India and organizations operating under its control. The scheme is an extension of its predecessor, aimed at providing a much-needed impetus to resolving disputes and fostering a business-friendly environment.

Applicability and Deadline

Under this scheme, disputes up to 30th September 2022 will be covered, bringing a considerable number of pending cases under its purview. Finance Minister Nirmala Sitharaman announced the scheme’s introduction during the budget, emphasizing the government’s commitment to promoting fair and efficient dispute resolution.

Settlement Terms

To encourage early settlement, the scheme offers graded settlement terms depending on the pendency level of the dispute. For court awards passed on or before 30th April 2023, contractors will be offered settlement amounts of up to 85% of the net amount awarded or upheld by the court. Similarly, for arbitral awards passed on or before 31st January 2023, the settlement amount offered will be up to 65% of the net amount awarded.

Seamless Implementation through GeM

To ensure the seamless implementation of the scheme, the Department of Expenditure has issued detailed guidelines for “Vivad se Vishwas 2 (Contractual Disputes)” on 29th May 2023. A specialized webpage has been set up by the government e-marketplace (GeM) solely for the implementation of the scheme, ensuring that only eligible claims will be processed through it. This approach aims to streamline the settlement process and expedite resolution.

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