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The government has launched the Vivad se Vishwas-2 scheme for settling contractual disputes involving the government and government undertakings. The scheme aims to resolve the government's contractual disputes with private parties, clear the litigation backlog, and improve the ease of doing business. The deadline for submitting claims under the scheme is 31 October 2023. The scheme will apply to all domestic contractual disputes where one of the parties is either the Government of India or an organization operating under its control. The central government is aiming to resolve approximately 500 cases, involving an estimated Rs 1 trillion, under this new voluntary settlement scheme. The one-time settlement scheme will cover cases where the court order was passed by 30 April 2023, and the arbitral order was given by 30 January 2023. Under the scheme, for court orders passed on or before 30 April 2023, the settlement amount offered to the contractor will be up to 85 percent of the net amount awarded or upheld by the court. For arbitral orders passed on or before 1 January 2023, the settlement amount offered is up to 65 percent of the net amount awarded.
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