FADA seeks re-inclusion of auto dealers under the MSME Act

FADA has sought re-inclusion of automobile wholesale and retail trade, including workshops, under the ambit of the MSME Act


Earlier, the auto dealerships used to fall under the MSME sector, however, they were excluded from the same after the government issued a notification in 2017.

As a part of the 20 lakh crore relief package announced by finance minister, Nirmala Sitharaman, 3 lakh crore collateral-free automatic loans for MSME sector and reclassification of the MSME definition were declared.

FADA President, Harsharaj Kale said, “companies falling under the MSME Act will be able to avail the benefits, auto dealers are excluded out of the same due to a 2017 notification. Auto dealers were earlier allowed under the MSME definition and their workshops in most cases operate under the rules of Factories Act. Re-inclusion of our businesses under the MSME ambit is a long pending demand. The subsidies and incentives received under the MSME division will provide much needed relief to the sector which provides direct and indirect employment to lakhs of people, he added.

In fact, the president also highlighted that most of the auto dealerships, barring the ones in metro cities, are small and medium family-run enterprises.

FADA President, Harsharaj Kale has also stated that during the latest round of meetings on the matter, Union MSME Minister, Nitin Gadkari had assured to review the 2017 circular and the re-inclusion of auto dealers back into MSME.

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