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Voluntary Settlement Scheme

Voluntary Settlement Scheme:

The Union Budget 2023 announced a “voluntary settlement scheme with standardised terms” to amicably end commercial/contractual disputes concerning government undertakings in which arbitral awards are under challenge.

  • The budget 2023-24 has proposed a scheme for settling contractual dispute named Vivad se Vishwas II (Settling Contractual Disputes).
  • Voluntary settlement scheme introduced to settle contractual disputes of government and government undertakings; wherein arbitral award is under challenge in a court.
  • This will be done by offering graded settlement terms depending on pendency level of the dispute.
  • Under the scheme, voluntary option is given to the private sector to come into the scheme or not.