Election Commission’s limit on cash worries India inc

New Delhi :  Industry representatives have complained that the business and trading community are facing harassment due to the election commission’s mandate that any cash above Rs50,000 should be explained by documentary evidence. Sales at jewellery stores, especially in the unbranded outlets, have also been affected due to the cash movement restrictions.

 

“Genuine businessmen, particularly those engaged in trading activity, are facing harassment at the hands of state police authorities as they mechanically follow  instructions of the Election Commission mandating that any cash above Rs 50,000 should be explained by documentary evidence,” said industry chamber Assocham. It said that the poll panel  should  increase this limit to Rsfive lakh.

 

“It is not only the traders but also the ordinary households that have become wary of this rule. The worse is that not many are even aware of this EC guideline and in the process many genuine common people and small traders carrying this much or a little more cash have been subjected to unnecessary harassment and even confiscation of cash,” said the industry chamber. It said that frequent travellers who are hopping in and out of metro cities day in and day out are facing the problems even more since they are under a special scanner at the airports. 

 

It said that as the election process is being stretched to two full months, it has increased the woes of the businessmen.“We have a long way to go before we completely move away from the cash economy to cheques and plastic money. Here the credit (card) penetration or acceptance at the merchandise is low while the retailers do not accept the cheques too happily,” said the chamber.