Benefits To Registered Retail Traders Under MSMED Act Limited To Priority Sector Lending, Not Eligible For QCO Exemption: Kerala High Court

The Kerala High Court has ruled that benefits to registered retail traders under the MSMED Act are limited to priority sector lending, not eligible for QCO exemption. The Micro, Small and Medium Enterprises Development (MSMED) Act aims to support small businesses. While retail traders can benefit from priority lending, the court clarified that they do not qualify for the "Quality Control Order" (QCO) exemption, which often relates to manufacturing or specific services. This decision defines the specific scope of benefits available to retail traders under the MSMED Act, preventing misinterpretation of the law.