Modi’s move has moneybags worried in poll-bound state

Ruchika M Khanna

Tribune News Service

Chandigarh, November 8

The Centre’s move to declare currency notes of Rs 500 and Rs 1,000 denomination as invalid is set to cast its shadow on the Punjab Assembly poll.

Though various political parties have welcomed the decision, it has led to panic behind the scenes, with most parties having stacked up money over the past six months for use in the elections.

A senior Congress leader said, “Since each candidate spends at least six to seven times the expenditure limit set by the Election Commission, the money is collected months in advance, and generally in currency notes of higher denominations. Some of the candidates have made numerous trips to Canada, the US and UK over the past year to collect the “election fund”. They will not be able to use it in the elections.”

An Akali leader said the decision would impact all political parties equally. “With money not playing a part, it will be the development agenda and the Panthic issues that will dominate the political discourse,” he added. With barely 10 per cent of the trade in the state being accounted for, the decision could anger the traders in the run-up to the poll, fear politicians.

Kulwant Singh, president of CREDAI (Confederation of Real Estate Developers’ Associations of India), Punjab, told The Tribune that the decision may harm the small property dealers, but colonisers stood to benefit from it. “Only the real end user will now invest in property, rather than all illegal money flowing in the real-estate sector,” he said.

In 2012, Rs 33.68 crore was seized in the run-up to the Assembly poll, while in 2014, Rs 27.43 crore was confiscated ahead of the Lok Sabha poll, of which Rs 11.22 crore was seized as not claimed.

Mixed response

The PM’s announcement evoked a mixed response from the business community. Jalandhar-based Ravinder Dhir, a sports goods manufacturer and representative of the Khel Udyog Sangh, said, “It is nothing but a step to divert the people’s attention from the burning issues. People in the trading business will suffer in the next two months as the entire financial set-up will get upset. The big businessmen will face no problem but the small and medium industrialists will be hit hard.”

The Ludhiana industry was also divided on the issue. Ajit Lakra, president of the Ludhiana Knitters’ Association and head of the Textile Division of Federation of Industrial and Commercial Organisation, said, “There was a huge circulation of fake currency in the country, used for funding terror activities. Only Narendra Modi could have taken this bold step.”

Gurmeet Kular, chairman of the United Cycle and Parts Manufacturers’ Association, said those having cash in hand may have a problem, but those doing transactions with proper paperwork had nothing to worry about.

A leading industrialist from Amritsar, Kamal Dalmia, said the step would weed out about 75 per cent black money out of the domestic market. A pharmaceutical manufacturer, Raman Gupta, stated that government revenue would increase in the long run and inflation might be brought under control.

Former BJP MLA Navjot Kaur Sidhu said, “This is the best thing that could have happened during election time in the state.”

(With inputs from Deepkamal Kaur, Minna Zutshi, Manav Mander, Neeraj Bagga and GS Paul)