Payment Guidelines for Mediation Fees 2025

Payment of Fees and other expenses to Mediators/Members of High Level Committees acting as a Mediator for mediation of contractual commercial disputes regarding.

Subject: Payment of Fees and other expenses to Mediators/Members of High Level Committees acting as a Mediator for mediation of contractual commercial disputes.
Key Points:

Legal Basis:

• Section 48 of the Mediation Act, 2023 (No. 32 of 2023) allows the Government or its entities to frame schemes for dispute resolution via mediation.

Existing Guidelines:

• Paragraph 7(vii) of O.M. No.F.1/12/2024-PPD (03.06.2024) encourages mediation/negotiated settlements for disputes in domestic public procurement.
• High-value disputes may involve a High Level Committee (HLC) with a retired Judge and technical expert, who may act as mediators.

Interim Fee Structure (Pending Finalization by Ministry of Law & Justice):

• Applies to disputes valuing ₹10 crore and above.
• Sitting Fees: ₹25,000 per sitting per member (max 5 sittings within 6 months per dispute).

Outstation Members:

• ₹25,000 per sitting (travel, hotel, food).
• Consecutive days: ₹25,000 (Day 1) + ₹15,000 (subsequent days).
• Local Members: ₹5,000 per sitting (local transport and food).
• Effective Date: 25th March 2025.

Issued by:

(Samir Kumar Das)

Deputy Secretary to the Government of India

Ministry of Finance, Department of Expenditure

Recipients: All Ministries/Departments of the Government of India.

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