Recently, the Ministry of Finance launched the scheme, “Vivad se Vishwas II to effectively settle the pending contractual disputes of government and government undertakings. The scheme was announced in the Union Budget 2023-24 by the Union Finance Minister.
GS III: Indian Economy
Dimensions of the Article:
- Vivad Se Vishwas-II Scheme:
Vivad Se Vishwas-II Scheme:
- Vivad Se Vishwas-II Scheme is a voluntary settlement initiative designed to address long-standing contractual disputes involving government entities.
- It is tailored for disputes where the Arbitral Award is under legal challenge, providing a framework for efficient resolution.
- Targeted Cases: The scheme focuses on disputes where the Arbitral Award is contested in court.
- Standardized Terms: The scheme introduces standardized terms for settlements.
- Graded Settlement Options: Options for settlement are provided based on the extent of dispute pendency.
- Arbitral Award: This is a final award that concludes arbitration proceedings.
- Efficient Resolution: The scheme aims to expedite the resolution of contractual disputes.
- Ease of Doing Business: It seeks to enhance the business environment by facilitating smoother interactions with government agencies.
- Investment Promotion: Encourages fresh investments in the country by establishing a conducive dispute resolution mechanism.
- Digital Platform: The scheme will be executed through an online mechanism on the Government e-Marketplace (GeM) portal.
- Government Agencies: The scheme applies to disputes with Central government entities, including autonomous bodies, public sector banks, financial institutions, and central public sector enterprises.
- Union Territories: Disputes with union territories and the National Capital Territory of Delhi and their agencies are covered.
- Opt-Out Provision: Certain organizations, like metro corporations with a 50% Centre stake, can choose to opt out if they secure board approvals.
- Court Awards: For cases with court awards, the settlement amount can reach up to 85% of the net awarded or upheld sum by the court.
- Arbitral Awards: For arbitral awards, the settlement threshold is “up to” 65% of the net amount.