Rajahmundry: As the Centre demonetised high denomination notes of Rs 1,000 and Rs 500 with the main objective to unearth black money and tackle fake currency, it evoked mixed reaction from a cross section of people some welcoming it, others critical as they are being subjected to hardships for exchange of old notes with new ones.
Parts of twin districts of Godavari are popular for black money and circulation of fake currency notes as the people invest in aqua industry and real estate business. Politicians cutting across party lines own thousands of acres of land especially at Kolleru to take up aqua culture under benami names. India earns nearly Rs 31,000 crore of foreign exchange through exports from the aqua industry per annum and out of it the share of AP is about 70 per cent and within AP, West Godavari contributes nearly 60 per cent of the exports. People involved in aqua industry after earning huge profits convert their cash into black money and invest in other sectors like real estate, hospitality and others.
Fake currency is a big menace where towns like Anaparthy, Ravulapalem, Bhimavaram and Narasapuram are notorious for their circulation. The notes are smuggled from Bangladesh and circulated for profit locally as people are involved in cricket betting, cock fights, gambling and other anti-social activities.
Senior politician and educationist Sriranganatha Raju said, “The government should have taken this decision some 10 years ago and by this time, India should have become free from the menace of black money and fake currency.”
The impact of demonetisation will be more on the film industry, realtors, and money launderers, those involved in mining business and on some professionals including doctors.
People who stashed huge amounts of black money have already started to invest in gold. A 10 mg gold coin worth about Rs 3,100 is being purchased at Rs 3,500 by offering scrapped notes. Similarly, a 10 mg ornamental gold which costs about Rs 3,500 in the prevailing market is being purchased for Rs 4,500.
Real estate business dealing especially with plots located far away from residential areas will witness a slump. The realtors say that nobody is going to invest in such business as both sellers and buyers fear that their money will be stuck once they invest in it. However, those who have black money will invest in luxury flats worth over Rs 1 crore and above to convert the cash into white.
Confederation of Real Estate Developers Associations of India AP Chapter treasurer Buddiga Srinivas said, “There will not be any impact on purchase and sale of flats located in residential areas suitable for middle-income group people as they avail housing loans from the banks to purchase them and there will be no role of black money involved.”
Rajahmundry City MLA (BJP) Dr Akula Satyanarayana welcomed the Centre’s decision.
