Priyanka and the 13-month payment freeze worth ₹43.85 lakh
Priyanka, 41, founded Horizon PR in Guwahati — seven communications professionals managing government relations and media strategy. In 2025, Assam Tourism Development Corporation signed a ₹38 lakh brand repositioning contract. Work delivered March 2025. Invoice raised April. Payment frozen May 2025 pending a procedural NOC. Still frozen May 2026. 13 months. GST already paid.
🚨 The problem
Government procurement moves through multiple approval stages. Priyanka's invoice was stuck on a missing NOC from another bureau. No one was accountable for getting it. Finance kept saying "the process is running its course." For 13 months, Horizon PR carried a ₹6.84 lakh GST liability paid upfront, with no payment from the client.
🚀 How GabFORGE helped
Priyanka's brother mentioned an AI that helps small businesses understand payment delays. She shared the situation:
🔍 Verified the law: The MSMED Act mandates payment within 45 days of invoice. Government PSUs are bound by this. ₹38 lakh outstanding for 11 months = breach.
💬 Translated the remedy: Compound interest at 3x SBI base rate (18% p.a.) accrues automatically. For 11 months, ₹38 lakh owed ₹5.85 lakh in interest.
📞 Connected the action: File a Samadhaan case naming ATDC as respondent. No lawyer needed. Portal submission takes 40 minutes.
Priyanka filed. ATDC settled rather than defend. May 15, 2026: ₹43.85 lakh received (principal + interest). The delay cost her a year of growth, but the law recovered the money.
🇮🇳 Why this matters
Thousands of PR agencies, design studios, and communications firms bid on government contracts. Few know the MSMED Act applies to government PSUs too. Most assume "slow government" is just the cost of doing business. The rule exists. The remedy exists. Most vendors never learn to use it.
A law exists that overrides internal government process. It's on the books. One founder filing one case changed the template for a state agency's next fifty vendors.