The Finance Ministry on Monday said the scheme to settle pending disputes related to government contracts under the Vivad Se Vishwas II will commence on July 15 and contractors will have time till October 31 to submit their claims.

The Vivad se Vishwas II (Contractual Disputes) scheme was announced in 2023-24 Budget for settlement of pending disputes related to government contracts. Under the scheme, contractors would be offered settlement amounts depending on the status of a dispute.

LegalPay launches $3 million fund to facilitate sports dispute resolution in India

As per the scheme announced by the Department of Expenditure, in cases of disputes where court or arbitral order has been passed, the settlement amount would be 85 per cent or 65 per cent of the amount awarded by the court or the arbitral tribunal respectively.

In the draft scheme, the Expenditure Department had proposed that the settlement amount would be 80 per cent in case of court orders and 60 per cent in case of arbitral awards.

The expenditure department has improved the final scheme after receiving feedback from stakeholders.

The scheme would commence from July 15, 2023, and claims can be submitted by October 31, 2023, said an Office memorandum of the DoE.