No Response from Govt. as CBDT Server Glitch Disrupts Udyam Portal; Speculation Grows Over Future of MSME Registration

A tweet by legal and policy news platform JurisHour has sparked a wave of concern among small businesses and startups after it flagged a serious technical issue on the Udyam Registration portal, which has been unable to fetch crucial investment and turnover details due to a CBDT server malfunction.

The tweet, which tagged key ministries and officials — including the Finance Minister, Ministry of MSME, CBDT, and Income Tax Department — was met with no official response from the government, even hours after going live. The silence has only intensified the growing frustration among the MSME community and led to fresh speculation over the government’s continued commitment to the Udyam Registration framework.

The post quickly garnered dozens of replies and quote tweets from MSME owners, startup founders, and consultants, all echoing the same grievance — that new and pending Udyam registrations have come to a halt, affecting funding applications, tenders, and compliance procedures that require valid registration.

Many users questioned the government’s lack of urgency, while others raised fears that the silence could be indicative of a deliberate phasing out of the registration system itself.

“Is this the end of Udyam? No info, no ETA, no workaround. We’ve been waiting for days,” one user wrote in response.
“This is not just a tech glitch — this is lost time, lost business, and lost trust,” said another.

The Udyam Registration portal was created as part of the Centre’s initiative to formalize the MSME sector by integrating real-time data verification through PAN, GST, and IT filings. But frequent glitches and system downtime, compounded by official silence, have put the credibility of the platform into question.

Experts warn that if the issue is not resolved promptly — and transparently — it may send the wrong signal to the very segment the government claims to champion.

For now, thousands of MSMEs remain in limbo, waiting not only for a technical fix but for a basic acknowledgment from the authorities.

Read More: Valuation Of Imported Goods Falls Outside The Purview Of High Court’s Jurisdiction: Calcutta High Court

Mariya Paliwala
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