New Delhi, June 23 -- The government is working on changes to laws on micro, small, and medium enterprises in a bid to speed up resolution of delayed payment disputes, scrap minor penalties and ease compliance for them, according to three people aware of the development. The amendments are likely to be introduced in the monsoon session of Parliament, they said. The month-long Parliament session is set to start on 21 July.

The amendments are likely to focus on Chapter V of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, which deals with the vexed issue of delayed payments to MSMEs, a longstanding concern for small businesses, the people said.

The amendments would aim to ensure more efficient dispute resolution, sai...